Closure of 969 MW Neelum-Jehlum hydropower project: Chinese contractor mobilised at the site

ISLAMABAD: The 3.5-kilometer tailrace tunnel of the 969 MW Neelum-Jehlum hydropower project got de-watered after a blockage appeared on July 06, 2022. However, the upstream blockage is yet to be de-watered, top official sources at Wapda told The News. The dewatering process of the tailrace tunnel began on July 10, 2022.

“Apparently, it is a geological failure in the tunnel, but the real cause will be traced once the dewatering process is completed. The project may take six months to generate cheaper electricity and in the meanwhile, countrymen will have to pay an extra amount of Rs60 billion. Reliance on power generation for 969 MW electricity per day will be increased on power plants based on costly imported fuel.”

Mohammad Arfan, Chief Executive Officer (CEO), Neelum-Jehlum Hydropower Project Company Limited (NJHPCL), when contacted, confirmed that downstream blockage in the tailrace tunnel had been dewatered but the upstream part was yet to be dewatered. He said that in the tunnel, there was darkness while teams were busy in clearing the tunnel from water.

The CEO said that the Chinese contractor CGGC-CMEC (Gezhouba Group), which constructed not only the Neelum-Jehlum project but also made it fully operational four years back, was partially mobilised eight days back to the site of its machinery to start reconstructing the tailrace tunnel.

Though the authorities, insiders said, managed some rates for the reconstruction of the tailrace tunnel, the unit rates have not yet been finalised. It is yet to be determined as to what needs to be reconstructed. “So far there is no access to what happened in the tailrace tunnel on July 6, 2022. Once the upstream blockage in the tailrace tunnel is de-watered, then the authorities will be able to know why the blockage appeared in the tunnel.” Sources also said that Stantec, the US-based consultant, is also on board.

The sources also disclosed that the machinery has been improvised to prevent any debris from falling while clearing the blockage but the magnitude of the blockage will only be ascertained once the upstream of blockage in the tailrace tunnel was cleared from water.

The authorities at the level of policy decision have taken up the issue with NICL (National Insurance Company Limited), asking it to pay the cost to be incurred on reconstructing the tunnel. The Neelum-Jhelum Hydropower Company Limited (NJHPCL) four years back signed an agreement with NICL for insurance of the project and to this effect, NJHPCL pays every year Rs1.3 billion to the insurance company.

“We have to look at what has been covered under insurance and if the whole parts of the projects are covered, then the NICL has to pay the full cost.” Sources also explained that NICL has a 7 percent share and a group of Chinese companies 93 percent in the insurance amount. “And they will share the cost to be incurred on making the project operational.”

The Neelum-Jhelum hydropower project was executed at the cost of Rs430 billion and it started functioning from April, 2018 under the deep mountains in the AJK where geology is neither predictable nor readable.

The project is one of its kind as 10 percent of the dam portion of the project is on the surface and 90 percent is underground with a waterway system comprising 52-km of tunnels. The project had generated electricity for four years at the cost of Rs9.1 per unit, but it came to a grinding halt on July 06, 2022, when its important underground tailrace tunnel was blocked.

The project seeks diversion of Neelum waters through tunnels at Nauseri about 41 kms upstream of Muzaffarabad and outfall in Jhelum River near Chatter Kalas in AJK, where the powerhouse is located. The project generates 5.15 billion units annually and has so far contributed 18.2 billion units with annual revenue of Rs50 billion.