ISLAMABAD: The Auditor General of Pakistan’s latest audit report has disclosed that the 969MW Neelum-Jhelum Hydropower Project has incurred total losses exceeding Rs. 128 billion.
According to reports based on the audit findings, these losses include Rs. 29.41 billion in operational deficits and Rs. 99.18 billion due to business disruptions, primarily caused by extended shutdowns and tunnel collapses.
The report pointed out that investigations into the repeated failures of the headrace and tailrace tunnels are still ongoing and have not yet been concluded.
It also highlighted a decline in the project’s financial health since the 2022-23 fiscal year, with electricity generation halting entirely from July 2022 to August 2023 following a collapse in the tailrace tunnel.
Furthermore, the powerhouse has remained non-operational since May 1, 2024, after the headrace tunnel experienced a collapse. The costs associated with repairing and rehabilitating both tunnels have significantly increased the project’s financial strain.
The audit emphasized that the project continues to face financial challenges, largely due to the lack of approval for its reference tariff by NEPRA.
The Auditor General urged that the unresolved investigations be expedited and recommended measures be taken to restore the powerhouse so that electricity production can resume promptly.
