Neelum-Jhelum Hydropower Project Shutdown Extended to 2028 Amid Tunnel Failure Investigation

The Neelum-Jhelum Hydropower Project (NJHPP), which was shut since a tunnel collapse on April 2, 2024, is expected to remain offline until March 2028 following a Senate Standing Committee on Water Resources briefing. Water and Power Development Authority (Wapda) Chairman retired Lt Gen Muhammad Saeed confirmed the timeline, citing ongoing investigations into structural failures and cost escalations.

Timeline for NJHPP Restoration

The project, which carries a total cost exceeding Rs500 billion, has been a significant contributor to Pakistan’s energy grid, with officials claiming it recovered approximately 80% of its capital expenditure through electricity generation prior to the shutdown. According to Chairman Saeed, the facility was located in a seismic zone—a fact documented in pre-launch reports—which is now a focal point of the technical inquiry.

The Senate committee, led by Senator Jam Saifullah Khan, has demanded a transparent, independent investigation into why the tunnel failed and why project costs spiraled. Lawmakers emphasized that this probe is essential to ensure accountability and to protect the integrity of future national infrastructure investments.

Financial and Operational Challenges at Nai Gaj Dam

Beyond the NJHPP, Wapda reported a significant financial loss regarding the Nai Gaj Dam project in Sindh. Chairman Saeed disclosed that the project incurred a loss of Rs23 billion due to a fake bank guarantee submitted by a contractor in 2009. The agency has since terminated the contract and blacklisted the firm; the case remains pending before the Supreme Court of Pakistan. Despite these setbacks, the committee urged the government to expedite the project, which is designed to irrigate 28,000 acres of land.

National Groundwater Depletion Crisis

The Senate panel also addressed the accelerating depletion of groundwater across Pakistan, noting that the country is among the most water-stressed nations globally.

* Punjab: Districts including Lahore, Okara, Vehari, Sahiwal, and Multan are experiencing unsustainable declines in water tables due to overexploitation.
* Sindh: Irrigation authorities reported that approximately 80% of the province’s groundwater is saline, and officials are currently drafting provincial legislation to regulate extraction.
* Balochistan: Authorities identified a severe deficit across 18 groundwater basins, where annual extraction consistently exceeds recharge rates. Plans are underway to implement GIS-based decision support systems and construct recharge dams.
* Khyber Pakhtunkhwa: Assessments remain incomplete due to a lack of piezometer installations, preventing an accurate analysis of the province’s water reserves.

Infrastructure and Funding Shortfalls

The committee reviewed several other key water projects, including the Hingol Dam, Harpo Dam, and the Kachhi Canal, alongside drainage infrastructure projects like RBOD-I and RBOD-III. Members expressed concern regarding the current Public Sector Development Programme (PSDP) allocations, noting that a substantial funding shortfall threatens the completion of these critical water and power works. The panel reiterated the necessity of adopting international best practices for water conservation and irrigation to mitigate the long-term risks to Pakistan’s agricultural productivity.