The government has referred 969 MW Neelum-Jhelum hydropower project to the Geological Survey of Pakistan (GSP) and Pakistan Meteorological Department (PMD) for comments, as a French firm Vinci had raised fears that the project may collapse as a result of seismic impacts, sources in Wapda told Business Recorder.
"We have approached both the agencies to get their comments on the project to know if the fears shown by the French company had any logic," the sources added.
Water and Power Development Authority opened tenders of Neelum-Jhelum project on November 30 as was promised to President Pervez Musharraf during a meeting with the head of Chinese company, which was already working on Mangla raising project.
Vinci, was one of the companies which also made a presentation to the Prime Minister Shaukat Aziz a few days earlier but after the opening of tenders, the sources added.
They said that tenders date was extended twice due to controversy on bidding documents especially in 'arbitration clause' but the company failed to apply by the due date.
"The project is of sensitive nature for Pakistan as India is constructing 330MW Kishanganga hydroelectric power project on River Neelum in occupied Kashmir and any further delay will be considered criminal negligence," said another official who requested not to be named.
The project was initially approved by Ecnec on December 31, 1989 at a cost of Rs 15.012 billion, which was revised to Rs 84.5 billion with FEC of Rs 46,667.70 million. Local component of the cost was to be met from Wapda's own resources while the FEC through foreign aid. The estimate was later revised at Rs 95.36 billion.
The gross head of the project is 420 feet and will generate 969 MW of electricity through 17-km long tunnel by diverting water of Neelum River to Jhelum River.
Wapda invited expression of interests in June 2002. But the process was abandoned because of unsatisfactory response and that none of the firms indicated any financing arrangement. Subsequently, the power utility started entertaining unsolicited proposals. Thirteen companies submitted their documents out of which Wapda short-listed four Chinese companies.
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