Balakot Hydropower Development Tender

Project Status Approved The project will provide financing to construct a 300 megawatt mw run-of-river hydro power plant located on the kunhar river in mansehra district khyber pakhtunkhwa kbk province of pakistan. The project will i improve energy security by increasing the clean energy share in the countrys energy mix currently dominated by thermal power generation ii boost provincial economy and promote revenue generating investments in the hydro abundant province of kpk and iii build capacity and awareness on climate change impacts adaptation and mitigation measures. The project also targets to improve the quality of life for women in communities surrounding the project area and promotes gender mainstreaming. Pakistan is rich in hydropower resources. Despite its 100 gigawatts gw recognized and 60 gw identified hydropower potential 30 gw of which is located in kpk province only 9825 mw 16 has been harnessed. Considering the huge hydro potential and need for clean energy under ideal situation pakistans energy mix should be rationalized and made more hydro and renewable energy-dependent rather than thermal. Rationalization of the generation mix is aligned with adbs country partnership strategy outcomes which prioritize development of domestic energy resources such as hydropower and renewable energy and greater availability affordability and efficiency in the sector. The proposed project is included in the current country operations business plan and supports i operational priority 1 2 3 5 and 6 of the adb strategy 2030 by contributing to addressing poverty and reducing inequalities gender equality and reducing time poverty for women building climate and disaster resilience environmental sustainability rural development and improvement in financial management of pedo and ii sustainable development goals 7 and 13 by providing affordable clean and sustainable energy and in meeting the countrys climate change mitigation and adoption priorities and objectives. Recognizing the challenges the government introduced the power generation policy 2015 to i bestow power and authority to the provincial governments to function as a facilitator for ipps ii simplify investment decision making by local and federal authorities identifying zones of responsibilities in processing and implementation of generation projects and iii extend the federal governments support backing up the payment obligation of the federal power purchaser and political and other risks in the projects to the provincial government-initiated projects when conforming to certain requirements. In line with this the government of kpk issued the kpk hydropower policy 2016 which assigns pakhtunkhwa energy development organization pedo as the single facilitator for all investors for hydropower projects in kpk a