The cost of Pakistan’s Tarbela 5th Extension Project has surged by 282% to Rs316 billion, despite serious concerns over its management, oversight and a previous structural failure.
The Executive Committee of the National Economic Council (ECNEC), chaired by Deputy Prime Minister Ishaq Dar, approved the revised project along with 15 other schemes carrying a combined cost of Rs1.15 trillion.
The Tarbela project was initially estimated at just Rs82 billion. Its approval at Rs316 billion represents an additional cost of Rs234 billion, or 282%.
The project has already faced major setbacks. An inquiry into the collapse of its 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 also raised concerns about the project’s management, transparency and oversight during the Central Development Working Party’s review. The Finance Ministry separately sought justification for the massive cost increase and questioned the repayment mechanism because the project is being financed through international financial institutions.
Despite these concerns, ECNEC approved the revised cost.
The committee also approved the Rs407 billion Lahore-Sahiwal-Bahawalnagar Motorway, retaining its original 295-kilometre alignment. The first 18.5-kilometre section from Lahore Ring Road to Raja Jang Interchange was approved at Rs49 billion.
The remaining motorway sections may be developed through public-private partnerships, with the National Highway Authority expected to provide viability gap funding where required.
Other projects approved by ECNEC included the 48-kilometre Khwazakhela-Besham Expressway at Rs116.6 billion, a Gilgit-Baltistan-Azad Kashmir connectivity project at Rs29 billion and the Rathoa Haryam Bridge at Rs10.8 billion, compared with its original Rs1.4 billion estimate.
The committee also approved a Rs56.6 billion wastewater treatment project in Lahore, a Rs29.7 billion poverty alleviation programme for 10 districts of southern Punjab and Rs10.6 billion for the Fulbright scholarship programme.
Overall, the approved projects carry a cost of Rs1.15 trillion, including around Rs320 billion in additional costs linked to delays and price increases.
