Neelum-Jhelum hydropower project progresses despite financial constraints
23 January 2013The Neelum-Jhelum hydropower project is progressing four per cent ahead of schedule despite lack of funds and power, local news reports have stated. The project is expected to be completed by 2016.
The two Herrenknecht TBMs have been fully assembled and deployed at the project site, however they not yet been put into operation due to lack of funds and alternate power arrangements. The arrival of TBMs started in January 2012 and continued until August; the manufacturer specifies five to six months for assembly and two months for testing and initiation of actual operation.
The two TBMs were procured at a total cost of USD 92M. The Neelum-Jhelum Hydropower Company has paid USD 60M so far to the contractor for onward payments to the manufacturer.
Construction on the project began in 2008 after a Chinese consortium was awarded the construction contract in July 2007. Significant delays, funding issues, and the potential impacts of India's Kishanganga Hydroelectric Project upstream have surrounded the project.
