World Bank reaffirms satisfactory progress on Tarbela hydropower expansion

The World Bank has reaffirmed "Satisfactory" progress on Pakistan’s Tarbela hydropower expansion programme, stating that an additional USD 300 million approved in June 2026 will help address cost overruns and keep the 1,530-megawatt Tarbela Fifth Extension Hydropower Project (T5HP) on track for commissioning in mid-2027.

 

According to the World Bank, both the project's development objectives and implementation progress remain rated "Satisfactory," although the overall risk assessment continues to be classified as "Substantial."

 

The Tarbela Fifth Extension is being financed through a USD 390 million World Bank loan and a USD 300 million loan from the Asian Infrastructure Investment Bank (AIIB). Construction of the powerhouse, electro-mechanical installations and a 500-kilovolt transmission line linking Tarbela to the Islamabad West Substation is progressing.

 

The Bank noted that the completed Tarbela Fourth Extension has already added 1,410MW to Pakistan’s power grid, while the Fifth Extension will contribute another 1,530MW, increasing the total renewable generation capacity created under the programme to 2,940MW.

 

It added that installed generation capacity at the Tarbela complex has risen from 3,478MW to 4,888MW following the Fourth Extension and is expected to reach 6,418MW after the Fifth Extension becomes operational.

 

The World Bank also highlighted progress on environmental and social initiatives, including community development projects and greater participation of women in selecting local development priorities. The project's revised completion date is September 2029.