The Central Development Working Party (CDWP) met in Islamabad on May 21, 2026, under the chairmanship of Federal Minister for Planning, Development & Special Initiatives and Deputy Chairman of the Planning Commission, Ahsan Iqbal, where serious concerns were raised over cost escalations and project delays in major hydropower schemes.
During the meeting, a revised proposal for the Diamer-Basha Dam Project (dam component, including helicopter-related adjustments) worth Rs485.006 billion was reviewed and forwarded to the Executive Committee of the National Economic Council (ECNEC) for further consideration.
Ahsan Iqbal expressed concern over the long delay in updating the project’s PC-I, noting that it had remained pending for six years despite a sharp rise in costs compared to the original approved estimate of Rs480 billion in 2018. He termed the situation an indication of weak project management and directed WAPDA to improve execution under its new leadership.
He further stated that concerns regarding rising costs had been repeatedly raised since 2020, but the revised PC-I had still not been submitted. He instructed that these observations be formally recorded.
The CDWP approved the revision of the helicopter-related component on security grounds but directed that the main dam PC-I be submitted without further delay.
The Minister also questioned whether WAPDA has an effective and integrated system for managing large-scale infrastructure projects, urging institutional reforms to strengthen planning, monitoring, and delivery capacity.
The meeting also reviewed a revised proposal for the Tarbela 5th Extension Hydropower Project, valued at Rs316.41 billion, which was also referred to ECNEC for approval.
While discussing the project, Ahsan Iqbal raised concerns over governance, transparency, and oversight mechanisms, citing findings from a Ministry of Water Resources inquiry report.
He questioned the replacement of an initially appointed international consultant with a local firm, calling the process non-transparent, and directed authorities to share the inquiry report for detailed review.
He also noted that project costs had escalated from Rs82 billion to over Rs140 billion, highlighting significant financial overruns.
The Minister directed that all issues related to project management, due diligence, and consultant performance be examined by an inquiry committee headed by the Member Infrastructure and submitted to ECNEC with a comprehensive report.
He further instructed authorities to establish a stronger institutional framework to prevent such delays and cost overruns in future mega projects, emphasizing accountability, transparency, and improved governance within organizations such as WAPDA.
