ISLAMABAD: The Khyber Pakhtunkhwa (KPK) government has sought the Power Minister’s support to include two of its hydropower projects in the upcoming Indicative Generation Capacity Expansion Plan (IGCEP) 2024-34 as their exclusion contradicts the established criteria.
In a letter to the Minister for Power, Sardar Awais Khan Leghari, Special Assistant to the Chief Minister of KPK on Energy and Power, Brig Tariq Saddozai (retired), stated that Khyber Pakhtunkhwa’s two hydropower projects — Gabral Kalam HPP (88 MW) and Madyan HPP (207 MW) — financed by the World Bank under the Khyber Pakhtunkhwa Hydropower & Renewable Energy Development (KHRE) Programme, were previously included as “committed projects” in the approved IGCEP 2022-31.
However, despite meeting the necessary assumptions and criteria, they have been excluded from the list of “committed projects” in the draft IGCEP 2024-34. In this regard, a meeting was convened under the chairmanship of the Power Minister on February 18, 2025, wherein the criteria for project selection were discussed in detail.
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According to the KPK government, the public-sector energy projects of the Peshawar Electric Supply Company (PEDO) fulfill the three criteria shared with the provincial government’s team.
On the issue of financial commitment, the KPK government stated that the total financing requirement for the projects is $727 million. The financial commitment is secured and distributed as follows:
(i) IDA Credit: 34.4% (World Bank) ;
(ii) IBRD loan: 27.5% (World Bank) ;
(iii) Government of Khyber Pakhtunkhwa (GoKP); 12.7%; and
(iv) commercial bank: 25.4%( if required.
Sharing details of financial progress greater than 10%, KPK Energy Advisor said that the Gabral Kalam and Madyan HPPs have achieved a 10.36% financial progress, covering:
(i) Gabral Kalam and Madyan feasibility and design (completed) - cost Rs 418 million;
(ii) tendering phase (completed) - Rs 42.134 million;
(iii) land acquisition Gabral Kalam (completed) – Rs 1655.79 million;
(iv) Gabral Kalam Employer’s Colony Construction works (40%) – Rs 1852 million;
(v) commitment charges - Rs 598.076 million ($2.6m);
(vi) PPA-cost Rs 38.946 million; and
(vii) IPOEs-cost Rs 51.508 million.
According to SAPM on Energy and Power KPK, construction progress greater than 10% for Gabral Kalam HPP:
(i) while overall construction progress for Gabral Kalam Hydropower Project stood at 9%, several key components have achieved significant milestones along with payments made;
(ii) land acquisition cost: Rs 1,655.79 million;
(iii) Consultants progress: 35% (Rs 509.68 million) ;
(iv) detailed design and tender documents completed;
(v) bids evaluation completed;
(vi) Employer’s Colony Construction- progress 40% (Rs 537.24 million);
(vii) Civil Works - tender process completed, No Objection Letter (NOL) awaited from World Bank;
(viii) E&M Works - tender process completed, NOL awaited from World Bank;
(ix) upon NOL clearance (within next two months) for Gabral Kalam by the World Bank, project progress is expected to exceed 15%, facilitated by the disbursement of 10% mobilization advances for civil and E&M works (10%). Mobilization cost of Civil Works Rs 5080 miilion and E&M Rs 1680 million).
Madyan HPP:
(i) feasibility study completed;
(ii) detailed design and tender documents completed;
(iii) bids evaluation completed. For civil works NOL awaited from World Bank and for E&M works, PEDO’s Procurement Committee Approval awaited;
(iv) Consultants progress: 37.5% (Rs 543.31 million);
(v) similarly, after NOL clearance (within two months) for Madyan Civil Works, project progress will surpass 10%, following the disbursement of 10% Mobilization Advance for Civil Works is Rs 9200 million approximately; and
(vi) in Madyan, land acquisition through private negotiations (as required by the World Bank) is under process. The disbursement of funds will further accelerate overall progress.
After sharing updated status of hydel projects, Energy Assistant to CM on Energy and Power, KPK has sought Power Minister’s intervention to ensure that Gabral Kalam HPP and Madyan HPP are reinstated as ‘committed projects’ in the upcoming IGCEP 2024-34, adding that given their secured financing, demonstrated progress, and strategic significance for Pakistan’s energy security, their exclusion contradicts the established criteria.
He has requested Minister for Power to direct NTDC to recognize these projects accordingly which would not only uphold fairness in energy planning but also reinforce national commitments to sustainable and renewable energy development.
Copyright Business Recorder, 2025
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