Tarbela’s runaway cost
EDITORIAL: With the Executive Committee of the National Economic Council (Ecnec) approving the Tarbela fifth extension project at a staggering Rs316 billion on August 22, the undertaking’s extraordinary cost escalation demands a hard look at how it was planned, managed and executed. Originally sanctioned in 2016 at Rs82.3 billion, its cost has soared by an eye-watering 282 percent, adding more…
The Executive Committee of the National Economic Council recently approved the Tarbela fifth extension project at an overwhelming cost of Rs316 billion, a staggering 282% increase from its original budget of Rs82.3 billion. This astronomical cost escalation highlights serious concerns about the project's planning, management, and execution, especially for a nation grappling with debt, fiscal constraints, and limited public resources.
Planning Minister Ahsan Iqbal has criticized the project's management, calling for transparency and accountability. Investigations revealed that the breach in the project's downstream cofferdam was caused by a design change from roller-compacted concrete to a rock-fill dam, inadequate supervision, and delayed administrative action.
Moreover, the appointment of a local consultant with dubious credentials and a skyrocketing consultancy cost, up 550% from Rs1.8 billion to Rs19 billion, further complicate matters. The finance ministry has requested justification for the escalation, particularly considering the project's financing by international financial institutions.
An inquiry committee has been tasked with examining the project's mismanagement and the performance of its contractors and consultants, but Ecnec approved the project without reviewing the committee's findings. Despite Tarbela's significance to Pakistan's water and energy security, the project should not be allowed to become a symbol of institutional failure.
It is crucial that those responsible for the decisions, negligence, or failures in oversight be held accountable, as every wasted rupee is a resource lost to other pressing national priorities. This issue is not unique to Tarbela, as massive cost overruns and execution failures have become a recurring problem in Pakistan's public sector development sector.
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