The government has excluded two major China-Pakistan Economic Corridor (CPEC) hydropower projects, worth $4 billion and totaling 1,824 MW, from the Indicative Generation Capacity Expansion Plan (IGCEP) 2025–35 due to failure to achieve financial closure. The exclusion of the Kohala (1,124 MW) and Azad Pattan (700.7 MW) projects comes after the failure to achieve financial closure, Business Recorder reported.
Federal Minister for Power, Sardar Awais Khan Leghari, announced the decision to the Senate Standing Committee on Power, which led to a heated discussion on the non-inclusion of the 207 MW Madyan and 88 MW GabralKalam projects.
Khyber Pakhtunkhwa (KPK) officials argued that these projects, which met the criteria set by the Council of Common Interests (CCI), were unfairly excluded from the latest IGCEP.
KPK’s Special Assistant on Energy, Brigadier Tariq Saddozai, claimed that the federal government had moved the goalposts, resulting in the exclusion of KPK’s hydropower projects despite previous commitments.
Minister Leghari and Power Secretary clarified that the World Bank-funded projects had not signed binding contracts and failed to meet the least-cost project criteria. They assured that IGCEP decisions will be finalized after public hearings, allowing affected parties to present their cases.
The committee also discussed the interim Net Hydel Profit (NHP) arrangement, with KPK’s outstanding dues remaining a contentious issue. KPK’s government claims its dues total Rs 76 billion, while WAPDA insists the amount is Rs 63 billion. A proposal to increase NHP monthly payments to Rs 5 billion was put forward.
In the broader context, the committee examined wheeling charges and other energy issues, with a focus on reducing losses and ensuring a competitive market.
The minister noted the termination and renegotiation of agreements with Independent Power Producers (IPPs), which will save an estimated Rs3.4 trillion over the next four to five years.
He also acknowledged the ongoing challenge of electricity theft but highlighted the progress made in reducing distribution company losses by Rs191 billion this year.
