Tunnel collapse in NJHP results in Rs35bn expense, according to Nespak
In a recent session held in 2025, key legislative and oversight matters were discussed, including regulatory frameworks, national development initiatives, and institutional performance. One of the main agendas was the consideration of The Cannabis Control and Regulatory Authority (Amendment) Bill, 2025.
Meanwhile, in the Neelum-Jhelum Hydroelectric Project (NJHP), a significant incident occurred when a critical tailrace tunnel collapsed, causing physical damage estimated at around Rs35 billion. This incident has led to losses exceeding Rs100 billion due to the halted power generation, resulting in a combined financial impact of approximately Rs135 billion.
Three separate inquiry committees have been established to investigate the cause of the tunnel collapse, aiming to determine whether the fault lies with the project consultants or if geological conditions at the site were responsible. The collapsed tunnel is located approximately 5.5 kilometers underground.
Repairs to the damaged tunnel are expected to take at least two more years, significantly impacting Pakistan’s clean energy supply and the national grid's stability.
In a separate development, the committee also discussed the proposed allocation of one per cent of the Cannabis Control and Regulatory Authority's annual fund to corporate social responsibility (CSR) initiatives. These initiatives may include the establishment of rehabilitation centres for drug addicts, skill development, employment generation, poverty alleviation, and efforts to promote gender equality and empower women.
The National Engineering Services Pakistan (Nespak) has revealed that one tunnel of the Neelum-Jhelum Hydroelectric Project has collapsed. Nespak, a leading engineering consultancy firm, has successfully undertaken 4,822 projects domestically and internationally over the past three years, and has entered into joint ventures with renowned foreign and local firms on a project-to-project and long-term basis.
The session was attended by several senators, including Farooq Hamid Naek, Fawzia Arshad, Dr Afnanullah Khan, and Shahadat Awan, as well as special invitees senators Bilal Khan Mandokhel and Sardar Al Haj Muhammad Umer Gorgaij.
Other matters discussed included the criteria adopted by the Pakistan Telecommunication Authority for enforcing roll-out obligations in the absence of a formal regulation or framework regarding right-of-way (Starred Question No 27). The committee also decided to defer the bill under consideration and directed the Cannabis Authority to submit its recommendations on the proposed amendments after placing them before its board.
The committee also decided to defer the matter concerning the NJHP tunnel collapse and invited the Ministry of Information Technology to the next meeting for a comprehensive briefing on the policy framework currently in place. The ongoing investigations and repairs highlight the severe consequences of the incident on Pakistan’s energy infrastructure and the ongoing efforts to identify causes and solutions.
- The committee represented in the 2025 session had deferred the matter concerning the Neelum-Jhelum Hydroelectric Project tunnel collapse, inviting the Ministry of Information Technology for a comprehensive briefing on the policy framework during the next meeting.
- One of the deferred bills under consideration in the 2025 session includes the proposed allocation of one per cent of the Cannabis Control and Regulatory Authority's annual fund to corporate social responsibility initiatives.
- In the broader context of national development and institutional performance, the regulatory frameworks discussed included the criteria adopted by the Pakistan Telecommunication Authority for enforcing roll-out obligations in the absence of a formal regulation or framework regarding right-of-way (Starred Question No 27).
- The ongoing investigations and repairs to the collapsed tunnel in the Neelum-Jhelum Hydroelectric Project demonstrate the grave impact on Pakistan's energy infrastructure and financial losses, estimated at around Rs135 billion due to the halted power generation.
