Economic evaluation of Tarbela dam

Pakistan is facing worst energy crises of its time. The total available hydro power capacity is around 6500MW out of overall capacity of around 22500MW; potential contributors of hydro power capacity are three projects Tarbela, Mangla and Ghazi Barotha. The output of the hydro plants is subject to availability of water (optimum level) in the dams, which can fall to as low as 2,500MW with substantial drop in water level. Available resources are not sufficient to meet power demand for industry, agriculture and ever increasing urban consumption. Currently electricity shortfall is of the magnitude 5000MW. Water is considered to be an economic good because of competing water use that in turn resulted in resource scarcity. This led the economies for a desperate need of a policy to work out economic feasibility of water management. Keeping in view the significance of inter relationship of hydro-economics, the aim of this research is to compare the predicted economic benefits of Tarbela dam with actual economic benefits attained since its commissioning. As we now have all the relevant river inflows, rainfall data, the study will enable the policy makers to review the feasibility reports and make appropriate decisions in future.