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Pakistan: Tarbela 5 Hydropower Extension

SUMMARY

STATUS
Approved
MEMBER
Pakistan
SECTOR
Energy
E&S CATEGORY
Category A
PROJECT NUMBER
000005

FINANCING

PROJECT TYPE
Cofinanced
APPROVED FUNDING
USD300 million
FINANCING TYPE
Sovereign

TIMELINE

LATEST FIELD VISIT
October 2019
CONCEPT REVIEW
July 1, 2016
APPRAISAL REVIEW/FINAL REVIEW
July 28, 2016
FINANCING APPROVAL
September 27, 2016
LOAN CLOSING/LAST DISBURSEMENT
June 1, 2022

OBJECTIVE

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.

DESCRIPTION

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:

  1. Construction of a power house and modification of existing tunnel (Tunnel 5) to house the power plant,
  2. Power equipment and transmission line:
    • supply and installation of power units and ancillary equipment for the power house on the Tunnel 5 to generate power; and
    • construction of transmission line to evacuate power,
  3. Technical assistance to support implementation of a social action plan, environmental and social management plan, and dam safety monitoring surveillance program,
  4. Construction supervision and monitoring and evaluation consultancies,
  5. Technical assistance to support PMU with project management, implementation support and studies, and capacity building.

 

PROJECT FINANCING

For more information about project financing, please review the project summary.

ENVIRONMENTAL AND SOCIAL INFORMATION

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.

PROJECT TEAM LEADER

Asian Infrastructure Investment Bank

Ghufran Shafi

Senior Investment Operations Specialist,
Investment Operations Department, TEC 2

Email: gshafi@aiib.org

 

World Bank

Rikard Liden

Lead Energy Specialist

Email: rliden@worldbank.org

BORROWER

M. Aslam Chaudhary

Joint Secretary
Economic Affairs Division
Ministry of Finance, Revenue & Economic Affairs
The Islamic Republic of Pakistan

aslam26@gmail.com

 

IMPLEMENTING ENTITY

Mr. Abdul Rashid

Project Director,
Tarbela 5 Hydropower Project, WAPDA

gmnpdtarbela@gmail.com

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