ISLAMABAD, May 16 (Alliance News): Federal Minister for Water Resources Muhammad Moeen informed the National Assembly on Friday that the restoration of the Neelum-Jhelum Hydropower Project (NJHPC) is expected to be completed within the next two years.
Speaking during the question hour, the minister said a committee probing the issues faced by the project is close to finalizing its report.
He revealed that around Rs 6.6 billion has already been spent to repair the Tail Race Tunnel (TRT), which allowed the 969-megawatt plant to resume full operations in March 2024. However, the plant was shut down again in May due to a fault in the Head Race Tunnel (HRT).
He noted that the main contract for HRT repair has not been awarded yet, in line with government directives. Moeen added that the NJHPC spent Rs 3.8 billion in 2022–23 and Rs 3 billion in 2023–24 for TRT restoration, with approval from the project’s Board of Directors.
The plant currently operates under a provisional tariff on a “take-and-pay” basis, meaning there are no fixed payments or guaranteed returns. The company is managing its finances through internal resources and pending payments from electricity sales to the Central Power Purchasing Agency (CPPA-G).
Despite the shutdown, the National Power Control Centre has confirmed that Pakistan has sufficient power generation to meet current demand, and no load-shedding is occurring due to the NJHPC issue. Other plants are supplying electricity via the national grid.
The minister emphasized the importance of strict adherence to equipment manufacturers’ guidelines to prevent further unexpected shutdowns.
He added that consultants have been instructed to review and improve maintenance protocols.
