The cost of the Tarbela 5th Extension Project has jumped 282 percent, rising by Rs. 234 billion from Rs. 82 billion to Rs. 316 billion, despite serious concerns over the project’s management, oversight and previous structural failures.
The Executive Committee of the National Economic Council (ECNEC), chaired by Deputy Prime Minister Ishaq Dar, approved the revised project as part of a package of 16 development schemes worth Rs. 1.15 trillion.
The Tarbela project was originally estimated to cost Rs. 82 billion. The latest revision takes the bill to Rs. 316 billion, adding Rs. 234 billion to the estimated cost.
The project has suffered significant delays and setbacks. An inquiry into the collapse of the downstream cofferdam found that the failure was linked to a design change, inadequate supervision and delayed administrative action rather than flooding.
Planning Minister Ahsan Iqbal had previously raised concerns about the project’s management, transparency and oversight. The Finance Ministry also sought an explanation for the 282 percent cost increase and asked for details of the repayment mechanism because the project is being financed through international lenders.
Despite these concerns, ECNEC approved the revised cost.
The committee also approved the Rs. 407 billion Lahore-Sahiwal-Bahawalnagar Motorway, retaining its original 295-kilometre alignment. Its first 18.5-kilometre section from Lahore Ring Road to Raja Jang Interchange was approved at Rs. 49 billion.
Other approved projects include the Rs. 116.6 billion Khwazakhela-Besham Expressway, a Rs. 29 billion road project linking Gilgit-Baltistan with Azad Kashmir, and the Rathoa Haryam Bridge at Rs. 10.8 billion, compared with its original Rs. 1.4 billion estimate.
ECNEC also approved a Rs. 56.6 billion wastewater treatment project in Lahore, a Rs. 29.7 billion poverty alleviation program covering 10 southern Punjab districts and Rs. 10.6 billion for the Fulbright scholarship program.
The 16 projects have a combined estimated cost of Rs. 1.15 trillion, including around Rs. 320 billion in additional costs attributed to delays and price increases.
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