Pakistan - Tarbela Fourth Extension Hydropower Project : Second Additional Financing

Overview & Synopsis

Second Additional Financing for Tarbela Fourth Extension Hydropower Project for Pakistan has the development objectives of facilitating a sustainable expansion of electricity generation capacity by completing the Tarbela Fifth Extension Hydropower Project to ensure safe operation of Tunnel 5 and the Tarbela Reservoir, reducing reliance on imported fossil fuels, improving system reliability and affordability, and enhancing energy security. Component A: Construction of Powerhouse and Modification to Tunnel 5 will complete civil works for a 1,530 megawatt powerhouse on Tunnel 5, a raised intake to sustain releases despite reservoir sedimentation, the connection tunnel and vertical shaft between the raised intake and Tunnel 5, tailrace culvert and outflow canal, and rehabilitation or replacement of low-level intake and low-level outlet gates to ensure safe commissioning and long-term operations under seasonal reservoir level constraints. Component B: Power Units, Switchyard, Transmission Line, and Ancillary Equipment will deliver turbines, generators, transformers, and auxiliaries, construct the Tarbela 5 switchyard, and provide interconnection with existing switchyards to enable commissioning under alternative evacuation paths; Sub-component B1 and Sub-component B2 will install the electro-mechanical equipment and associated electrical connections, while Sub-component B3.1 will complete the 500 kilovolt double-circuit Tarbela transmission line from the Tarbela 5 switchyard to the Islamabad West Substation to evacuate the full plant output, and Sub-component B3.2 will implement the Environmental Action Plan and Social Action Plan for the transmission line. Component C: Social Action and Environmental Management Plans, Dam Monitoring and Surveillance will finance land and resettlement compensation for legacy cases and for the transmission line, implement the Social Action Plan and Environmental Management Plan for the hydropower component, and strengthen dam safety and monitoring systems, including continued operation of instruments and surveillance protocols. Component D: Construction Supervision, Monitoring and Evaluation will provide continuous construction management and implementation support through the Tarbela 5 Project Implementation Consultant and an Independent Panel of Experts, and carry out independent monitoring and evaluation of project impacts, social development activities, grievance redress, resettlement actions including the Resettlement Claims Commission, and occupational health and safety. Component E: Project Management Support, Capacity Building of the Water and Power Development Authority, Technical Assistance, Training, and Future Project Preparation will support the Project Management Unit including the Environmental and Social Management Unit, advisory and training services, strategic studies and preparation of future hydropower schemes in the Tarbela Complex and the lower Indus, and gender-focused actions aligned with the WePOWER Pakistan National Chapter to improve recruitment, retention, and professional development of women in technical roles through outreach, internships, training, facilities, and policy enhancements. The additional financing will use existing implementation, fiduciary, and environmental and social instruments, and will prioritize timely commissioning of the powerhouse, completion of the raised intake, and sustained benefit sharing with local communities.