Pakistan: Balakot Hydropower Development Project

Sovereign (Public) Project | 49055-007

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 country's 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.

Project Details

Project Name Balakot Hydropower Development Project
Project Number 49055-007
Country Pakistan
Project Status Active
Project Type / Modality of Assistance Loan
Source of Funding / Amount
Loan 4057-PAK: Balakot Hydropower Development Project
Ordinary capital resources US$ 300.00 million
Loan 8397-PAK: Balakot Hydropower Development Project
Asian Infrastructure Investment Bank US$ 280.00 million
Strategic Agendas Environmentally sustainable growth
Inclusive economic growth
Drivers of Change Gender Equity and Mainstreaming
Governance and capacity development
Knowledge solutions
Partnerships
Sector / Subsector

Energy / Large hydropower generation

Gender Equity and Mainstreaming Effective gender mainstreaming
Description 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 country's 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.
Project Rationale and Linkage to Country/Regional Strategy

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 9,825 MW (16%) has been harnessed. Considering the huge hydro potential and need for clean energy, under ideal situation Pakistan's energy mix should be rationalized and made more hydro and renewable energy-dependent rather than thermal. Rationalization of the generation mix is aligned with ADB's 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 country's 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 government's 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, and aims to develop projects through the private and public sectors window.

Impact Reduced carbon footprint and energy sector made more renewable, efficient and reliable
Project Outcome
Description of Outcome Energy security in Khyber Pakhtunkhwa enhanced
Progress Toward Outcome
Implementation Progress
Description of Project Outputs

Climate-resilient hydropower plant commissioned

Capacity for climate change risk management in hydropower production enhanced

PEDO's revenues from indigenous resources increased

Income-earning opportunities and skills for local communities increased

Status of Implementation Progress (Outputs, Activities, and Issues)
Geographical Location Balakot
Safeguard Categories
Environment A
Involuntary Resettlement A
Indigenous Peoples C
Summary of Environmental and Social Aspects
Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design
During Project Implementation
Responsible ADB Officer Tareen, Adnan
Responsible ADB Department Central and West Asia Department
Responsible ADB Division Energy Division, CWRD
Executing Agencies
Energy and Power Department, Government of Khyber Paktunkhwa
Muhammad Zabir
[email protected]
E&P-GoKPK, Abdul Wali Khan Multiplex,
Block A, Civil Secretariat, Peshawar,
Pakistan
Timetable
Concept Clearance 29 Sep 2016
Fact Finding 12 Jun 2019 to 21 Jun 2019
MRM 19 Nov 2019
Approval 30 Mar 2021
Last Review Mission -
Last PDS Update 31 Mar 2021

Loan 4057-PAK

Milestones
Approval Signing Date Effectivity Date Closing
Original Revised Actual
30 Mar 2021 21 May 2021 07 Jul 2021 31 Dec 2027 - -
Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 475.00 Cumulative Contract Awards
ADB 300.00 07 Sep 2021 228.56 0.00 76%
Counterpart 175.00 Cumulative Disbursements
Cofinancing 0.00 07 Sep 2021 59.42 0.00 20%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory Satisfactory - - Satisfactory

Loan 8397-PAK

Financing Plan Loan Utilization
Total (Amount in US$ million) Date ADB Others Net Percentage
Project Cost 280.00 Cumulative Contract Awards
ADB 0.00 - 0.00 0.00 %
Counterpart 0.00 Cumulative Disbursements
Cofinancing 280.00 - 0.00 0.00 %

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Access to Information Policy (AIP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.


Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.


Evaluation Documents See also: Independent Evaluation

None currently available.


Related Publications

None currently available.


The Access to Information Policy (AIP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.

Tenders

Tender Title Type Status Posting Date Deadline
Balakot Hydropower Development Project Individual - Consulting Closed 27 Apr 2021 03 May 2021
49055: PAK: Balakot Hydropower Project [Package 1] Invitation for Bids Closed 25 Nov 2019 15 Jun 2020
49055-007: Balakot Hydropower Development Project Advance Notice Active 13 Nov 2019

Contracts Awarded

Contract Title Approval Number Contract Date Contractor Contractor Address Executing Agency Contract Description Total Contract Amount (US$) Contract Amount Financed by ADB (US$)
DESIGN SUPPLY & INSTALL TESTING & COMMISSIONING OF BALAKOT HPP (300MW) INC THE RELATED CIVIL WORKS FOR RIVER DIVERSION Loan 4057 09 Jul 2021 JV CHINA GEZHOUBA GROUP COMPANY (CGGC) PRC & GHULAM RASOOL AND COMPANY PVT LTD (GRC) GEZHOUBA TWOER NO. 558 JIEFANG AVENUE WUHAN HUBEI PROVINCE 430033 CHINA PEOPLE'SREP.OF Energy and Power Department, Government of Khyber Paktunkhwa TURNKEY 303085609.7 130326812.2

Procurement Plan