Hydropower Potential of Khyber Pakhtunkhwa

Hydropower Potential of Khyber Pakhtunkhwa

Upon its establishment in August; 1947 Pakistan inherited just 60 MW power base for its population of 31.5 million. This was a huge shortage like other sectors of a newly born Country. Hydropower Project Jabban (Malakand-I) having 1.7 MW capacity was upgraded to 20 MW capacity. Subsequently in 1953, Dargai (Malakand-II) was also commissioned. At the time of establishment of Water & Power Development Authority (WAPDA) total capacity of Hydro Power was 119 MW. Signing of Indus Basin Water Treaty Pakistan became entitled to utilize 142 MAF (Indus
93, Chenab 26 & Jhelum 23) of surface water. Beside 240 MW WARSAK, 1000 MW Mangla & 3478 MW Tarbela Hydro Power Projects were gradually commissioned. Subsequently the growth of population & hydropower capacity didn’t match and this status still prevails in 2016 also. Khyber Pakhtunkhwa having abundant Hydropower potential has a major role in the Power Sector. Existing Hydro Power Projects in operation in Khyber Pakhtunkhwa are


Installed capacity of Hydro Power generation in Khyber Pakhtunkhwa i.e. 3849 MW is more than 67% of the total capacity of 6720 MW including Punjab, GB & AJK. Expansion of Tarbela-IV is likely to generate 1410 MW hydropower generation leading to a total capacity of Tarbela to 4888 MW. The Project is being financed by the World Bank and hopefully to be completed by June 2017. Additional generation from Tarbela-IV is likely to narrow the gap of demand and supply. Austrian Government has also offered expansion provided contract of provision of equipment is awarded to an Austrian Firm M/s Audritz Hydro. The Government of Khyber Pakhtunkhwa keeping in view the abundant Hydel power generation capacity has focused of hydro power generation. In 1986 Small Hydel Development Organization (SHYDO) was established. ToR’s of SHYDO were to identify and develop Hydel potential
upto 5 MW, to construct, operate and maintain Small Hydel Stations. In 1993 SHYDO was converted into Pakhtunkhwa Hydel Development Organization (PHYDO) to identify, construct operate maintain and regulate Small & Medium Hydel Stations and also involve private sector in the Development of Hydel potential. In 2014 the organization was renamed as Pakhtunkhwa Energy Development Organization (PEDO). Khyber Pakhtunkhwa Hydro Power policy has been developed and approved during 2016. Said Policy provides incentives like:-
• Hydrological risk to be borne by the Power Purchaser in accordance with monthly average hydrology.                • Permission to issue Corporate bonds.
• 100% foreign ownership.
• Support and facilitation in acquisition of Land.
• Facilitate provision of adequate external security.
• Attractive ROE / IRR.
• Exemption of Income Tax including Turn over tax & withholding tax, sale tax on plants, machinery & equipment, Provisional sales tax concessionary rate of 5% custom duty on import of plants & equipment not manufactured locally. PEDO is on its way to implement Short Term, Medium Term and Long Term 29 Projects of 3902 MW at a Total cost of US $ 11947 million.
Details are:-
a. Short Term Projects (3 years)


b. Medium Term Projects (In Public Sector – Under Implementation)


c. Long Term Projects (Offered to Private Sector)


d. Long Term Projects (Feasibility Studies Completed)


e. Long Term Projects (Feasibility Studies to be Initiated)


Government of Khyber Pakhtunkhwa has launched a program of 356 Mini / Micro Projects to benefit the local community in different parts of the Province. 100 such projects have been completed and handed over to local community. PEDO is on its way to award the following seven (07) projects to the Private Sector investors.


These seven Projects having a capacity of 12-188 MW, have already been advertised and after prequalification  RFP process is in progress. Completion of these projects is likely to enhance 668 MW hydropower capacity in the system. Pakhtunkhwa is blessed with immense hydro power potential due to its geography and natural bounty of main rivers including Indus, Siran, Kunhar, Chitral, Panjkora, Swat & other small tributaries. Khyber Pakhtunkhwa’s hydropower potential remained focus of interest to private Investors & International funding agencies. Since creation of Pakistan major focus remained on Khyber Pakhtunkhwa & World fame hydro projects like earth filled Tarbela Dam were designed in 1968 and completed in 1976 at a total cost of 18.5 Billion Rupees. Tarbela Dam has a volume of 138,600,000 cubic yards (106,000,000 m3) with a reservoir capacity of 11,098,000 acre feet (13.69 km3). Tarbela Dam is 469 ft (143m) high and 8997 feet (2743 m) wide at its crest and stands 147 meter above the Indus riverbed. PEDO has also identified the following seven (07) raw sites for Development in Private Sector. Prefeasibility of these projects has been completed.


The following sites have also been identified to carry out detailed feasibility available for investment as per KP Hydropower Policy 2016.


Khyber Pakhtunkhwa is a heaven for Local / International investors dealing in Hydelpower generation. Utilization of major chunk of hydropower potential is not only to suffice Pakistan’s own requirement but can also be provided to the neighboring needy countries to strength the economic growth of Pakistan.