The Project Objective is to facilitate the sustainable expansion of Pakistan’s electricity generation capacity providing a low cost, clean, renewable energy option. The Project will add capacity of 1,410 Megawatt (MW), with annual electricity generation of over 1,800 Gigawatt-hours (GWh), primarily during the summer season when demand is highest.
The project, co-financed with World Bank (WB), will enable the installation and commissioning of additional power output from existing Tarbela hydropower dam. The project will help Pakistan in sustainable expansion of the country’s low-cost generation capacity. Key implementation activities of the project include:
For more information about project financing, please review the project summary.
The proposed project is co-financed with the WB as lead co-financier, and its environmental and social (ES) risks and impacts have been assessed in accordance with the WB’s Environmental and Social Safeguard Policies (Safeguard Policies). To ensure a harmonized approach to addressing the ES risks and impacts of the project, and as permitted under AIIB’s Environmental and Social Policy (ESP), AIIB agrees that the WB Safeguard Policies will apply to the project in lieu of AIIB’s ESP. AIIB has reviewed the WB Safeguard Policies and is satisfied that: (i) it is consistent with the Bank’s Articles of Agreement and materially consistent with the provisions of AIIB’s ESP and the relevant Environmental and Social Standards; and (ii) the monitoring procedures that are in place are appropriate for the Project.
The project has also been placed by the WB in Category “A” as the Project is a large undertaking by Water and Power Development Authority (WAPDA), in conjunction with the ongoing construction of the WB-funded Tarbela Fourth Extension Hydropower Project (T4HP).
An Environmental and Social Assessment (ESA) of the Project, prepared jointly by WAPDA and National Transmission and Dispatch Company Ltd. (NTDC), considers adverse environmental and social issues likely to arise during the complete project cycle, including the preconstruction, construction, and operation phases. In addition, WAPDA and NTDC have prepared a land acquisition and resettlement framework (LARF), which covers preparation of resettlement action plans (RAPs) for the transmission line (component b-ii) and a new grid station to which the transmission line will be connected. This grid station will be constructed and financed by the WB under another project (National Transmission Modernization I Project (NTMIP)). A Social Action Plan (SAP) has been included in the project along with resources, based on experience gained in T4HP.
The Project does not have impacts on any natural habitat or forest and is not expected to contribute to any cumulative impacts since it will not change Tarbela’s operational regime. The main impacts of this project will be construction-related environmental impacts and occupational health and safety risks. The mitigation measures to address the adverse impacts are included in the ESA. Several legacy resettlement and land acquisition cases under both the 1970s Tarbela Dam project and the 1990s Ghazi Barotha Hydropower project have been addressed through a Resettlement Commission financed under the T4HP. This Commission will be reconstituted and financed under the WB’s Additional Financing to continue to work on remaining legacy cases under the Project.
Consultation and Disclosure. Consultations were undertaken with local communities during project preparation in the project area and the views of stakeholders have been included in the development of mitigation measures under the ESA. Consultations with the local communities will continue through the SAP, during implementation of the RAPs and as communication initiatives under the Project. The ESA and LARF have been completed and disclosed by WAPDA and also posted on the WB’s website . The RAP for the transmission line will be posted by WAPDA, WB and the Bank when it becomes available. The RAP for the Islamabad West Grid Station will be disclosed prior to appraisal by the WB of the NTMIP.
Project-level Grievance Mechanisms. A project-level grievance redress mechanism will be used for the Project. A tripartite Grievance Redress Committee on labor issues has been operational during T4HP and will continue to address labor complaints and employment issues under the Project.
Asian Infrastructure Investment Bank
Senior Investment Operations Specialist,
Investment Operations Department, TEC 2
Lead Energy Specialist
M. Aslam Chaudhary
Economic Affairs Division
Ministry of Finance, Revenue & Economic Affairs
The Islamic Republic of Pakistan
Mr. Abdul Rashid
Tarbela 5 Hydropower Project, WAPDA