economics

Chinese company faces scrutiny after collapse of dam protective embankment in Pakistan.

Published November 10, 2026 · 3 min read
This aerial view shows water leaving the Tarbela Dam spillway in Tarbela on August 24, 2010. The United States and other countries worldwide have now pledged a total of more than 700 million dollars towards flood relief in Pakistan, a senior US official said. AFP PHOTO/Farooq NAEEM (Photo credit should read FAROOQ NAEEM/AFP via Getty Images)

A worrying incident has emerged concerning the Chinese-backed “Belt and Road” Initiative, specifically regarding the Tarbela Dam in Pakistan. On November 9, a rock collapse occurred during construction for the Fifth Extension Project (T-5) at the dam, causing significant water inundation into tunnels at the site, leading to an emergency evacuation of workers. This project has been marred by allegations of corruption and has faced serious scrutiny over structural integrity and safety issues.

Videos circulating on social media reveal alarming scenes of water flooding into the construction area and the power plant due to a breach in the dam’s protective embankment. As a result, all work on this vital project has been suspended for the time being.

According to reports from Dawn, one of Pakistan’s leading English-language newspapers, the Water and Power Development Authority (WAPDA) confirmed on November 9 that a section of the weak rock mass had collapsed. Following the incident, authorities declared a state of emergency, facilitating the safe relocation of both Chinese and Pakistani workers. Thankfully, there were no reported injuries or fatalities. Investigations are now underway to assess potential damage to the tunnels, power plant, and other construction facilities in the vicinity.

The T-5 project aims to retrofit the existing Number Five irrigation tunnel at the Tarbela Dam by adding three new turbine units, each with a capacity of 510 megawatts, for a total installed capacity of 1,530 megawatts. This upgrade would increase the dam’s overall capacity from approximately 4,888 megawatts to 6,418 megawatts, generating approximately 14.66 billion kWh of clean energy per year. The construction was contracted to China Power Construction Group (POWERCHINA) in 2021, amounting to around 355 million USD. Meanwhile, the electromechanical works are managed by a consortium led by Harbin Electric, with financing sourced from the World Bank (approximately 390 million USD) and the Asian Infrastructure Investment Bank (about 300 million USD), alongside additional funding from Pakistan.

This incident is not an isolated case; back in August 2025, a similar collapse occurred, which led to flooding at the construction site and forced workers to halt their activities.

In response to these incidents, an investigative committee established by the government concluded earlier this July that the primary stakeholders—contractors, consultants, and WAPDA—should be held accountable for the embankment collapses associated with the 1,530-megawatt T-5 project. The committee also pointed out that unauthorized design changes after the contract was finalized contributed significantly to the structural failure.

Despite the involvement of major international lenders such as the World Bank and the Asian Infrastructure Investment Bank, this project has faced numerous delays due to lengthy approval processes and natural disasters, pushing back its completion from the original target of 2026 to approximately 2028. Costs have skyrocketed by over 285%, swelling from an initial estimate of 82 billion Pakistani Rupees to around 317 billion Rupees.

The situation surrounding this project appears increasingly precarious. Officials from WAPDA have been under investigation by anti-corruption bodies like the National Accountability Bureau for allegations of abuse of power, irregular approvals, and fund misappropriation, which have further tainted the project’s reputation.

The succession of accidents has raised serious doubts regarding the project’s capability to address complex geological and hydrological risks. Local authorities have now formed a high-level investigation team to determine whether the incidents are a result of unavoidable geological factors or if systemic issues in structural design and construction practices are to blame.