KPK seeks inclusion of two hydropower projects in national energy plan

The Khyber Pakhtunkhwa (KPK) government has called on the Power Ministry to reinstate two of its hydropower projects in the upcoming Indicative Generation Capacity Expansion Plan (IGCEP) 2024-34, arguing that their exclusion contradicts established selection criteria, BR reported.

In a letter to Power Minister Sardar Awais Khan Leghari, Special Assistant to the Chief Minister on Energy and Power, Brig Tariq Saddozai (retired), emphasized that the Gabral Kalam Hydropower Project (88 MW) and Madyan Hydropower Project (207 MW)—both financed by the World Bank under the Khyber Pakhtunkhwa Hydropower & Renewable Energy Development (KHRE) Programme—had been previously classified as “committed projects” in IGCEP 2022-31. However, despite meeting all necessary requirements, they were excluded from the latest draft.

The KPK government maintains that these public-sector projects, developed under the Peshawar Electric Supply Company (PEDO), align with the criteria set for IGCEP inclusion. 

The province contends that financial commitments for both projects are secured, with a total funding requirement of $727 million, distributed among the World Bank’s IDA credit (34.4%), an IBRD loan (27.5%), the Government of Khyber Pakhtunkhwa (12.7%), and a potential commercial bank contribution (25.4%) if necessary.

Highlighting the projects’ financial progress, Saddozai stated that Gabral Kalam and Madyan had already surpassed the 10% financial threshold, a key criterion for IGCEP inclusion. 

Key developments include the completion of feasibility studies and tendering phases, land acquisition for Gabral Kalam, and construction of the employer’s colony at 40% progress. 

The total financial commitments so far include Rs418 million for feasibility and design, Rs42.1 million for tendering, Rs1.65 billion for land acquisition at Gabral Kalam, and Rs1.85 billion for colony construction.

In terms of construction, the Gabral Kalam project has achieved 9% overall progress, with some components advancing further. The Madyan project has completed feasibility studies, detailed design, and tendering, with consultant progress at 37.5% and civil works awaiting a No Objection Letter (NOL) from the World Bank. 

The KPK government has urged the Power Ministry to direct the National Transmission and Despatch Company (NTDC) to reinstate both projects as committed ventures in IGCEP 2024-34, stressing their strategic importance for Pakistan’s energy security and adherence to renewable energy commitments.