Pakistan : Balakot Hydropower Development Project
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
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Project Officer
Tareen, Adnan
Sectors Group
Request for information -
Country/Economy
Pakistan -
Sector
- Energy
Related Projects
| Project Name | Balakot Hydropower Development Project | ||||||||
| Project Number | 49055-007 | ||||||||
| Country / Economy | Pakistan |
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| Project Status | Active | ||||||||
| Project Type / Modality of Assistance | Loan |
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| Source of Funding / Amount |
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| Operational Priorities | OP1: Addressing remaining poverty and reducing inequalities OP2: Accelerating progress in gender equality OP3: Tackling climate change, building climate and disaster resilience, and enhancing environmental sustainability OP5: Promoting rural development and food security OP6: Strengthening governance and institutional capacity |
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| Sector / Subsector | Energy / Large hydropower generation |
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| Gender | 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. |
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| Impact | Reduced carbon footprint and energy sector made more renewable, efficient and reliable |
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| 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 | Sectors Group |
| Responsible ADB Division | Energy Sector Office (SG-ENE) |
| Executing Agencies |
Energy and Power Department, Government of Khyber Paktunkhwa |
| Timetable | |
|---|---|
| Concept Clearance | 29 Sep 2016 |
| Fact Finding | 12 Jun 2019 to 21 Jun 2019 |
| MRM | 19 Nov 2019 |
| Approval | 15 Jul 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 | 22 Jul 2023 | 219.28 | 0.00 | 73% |
| Counterpart | 175.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 22 Jul 2023 | 68.87 | 0.00 | 23% |
| Status of Covenants | ||||||
|---|---|---|---|---|---|---|
| Category | Sector | Safeguards | Social | Financial | Economic | Others |
| Rating | Satisfactory | Satisfactory | Satisfactory | Satisfactory | - | Satisfactory |
Loan 8397-PAK
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 15 Jul 2021 | 27 Sep 2021 | 25 Oct 2021 | 30 Sep 2028 | - | - |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 250.00 | Cumulative Contract Awards | |||
| ADB | 0.00 | 22 Jul 2023 | 0.00 | 192.17 | 77% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 250.00 | 22 Jul 2023 | 0.00 | 6.00 | 2% |
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.
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| Title | Document Type | Document Date |
|---|---|---|
| Balakot Hydropower Development Project: Audited Project Financial Statements (7 July 2021-30 June 2022) | Audited Project Financial Statements | Mar 2023 |
| Balakot Hydropower Development Project: Updated Project Administration Manual | Project/Program Administration Manual | Apr 2022 |
| Loan Agreement (Ordinary Operations) for Loan 4057-PAK: Balakot Hydropower Development Project | Loan Agreement (Ordinary Resources) | May 2021 |
| Project Agreement for Loan 4057-PAK: Balakot Hydropower Development Project | Project/Program Agreements | May 2021 |
| Balakot Hydropower Development Project: Project Administration Manual | Project/Program Administration Manual | Mar 2021 |
| Balakot Hydropower Development Project: Gender Action Plan | Gender Action Plans | Mar 2021 |
| Balakot Hydropower Development Project: Procurement Plan | Procurement Plans | Mar 2021 |
| Balakot Hydropower Development Project: Report and Recommendation of the President | Reports and Recommendations of the President | Mar 2021 |
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.
Signing Ceremony for ADB $300 Million Loan to Pakistan for Balakot Hydropower Project
The Asian Development Bank and the Government of Pakistan today signed a $300 million loan to finance the construction of a 300-megawatt hydropower plant in Balakot, Khyber Pakhtunkhwa province.
Tenders
| Tender Title | Type | Status | Posting Date | Deadline |
|---|---|---|---|---|
| Balakot Hydropower Development Project | Firm - Consulting | Closed | ||
| Balakot Hydropower Development Project | Individual - Consulting | Closed | ||
| Balakot Hydropower Development Project | Individual - Consulting | Closed | ||
| 49055: PAK: Balakot Hydropower Project [Package 1] | Invitation for Bids | Closed | ||
| 49055-007: Balakot Hydropower Development Project | Advance Notice | Active |
Contracts Awarded
| Contract Title | Approval Number | Contract Date | Contractor | Address | Executing Agency | Total Contract Amount (US$) | Contract Amount Financed by ADB (US$) |
|---|---|---|---|---|---|---|
| Implementation of Community Support/Development Program | Loan 4057 | 21 Jul 2023 | MM Pakistan (PVT.) LTD. | House #67, Street #488, Sector G-13/1, Islamabad | Energy and Power Department, Government of Khyber Paktunkhwa | 33,691,264.90 | 540,363.55 |
| Design, Supply & Install, Testing and Commissioning of Balakot HPP (300MW) including the Related Civil Works for River Diversion | Loan 4057 | 26 May 2022 | CHINA GEZHOUBA GROUP COMPANY (CGGC) | GEZHOUBA TOWER, NO. 558 JIEFANG AVENUE, WUHAN, HUBEI PROVINCE 430033 | Energy & Power Dep't, Gov't of Khyber Pakhtunkhwa | 472,701,173.00 | 55,760,721.55 |
| DESIGN SUPPLY & INSTALL TESTING & COMMISSIONING OF BALAKOT HPP (300MW) INC THE RELATED CIVIL WORKS FOR RIVER DIVERSION | Loan 4057 | 03 Aug 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 | 508,559,118.50 | 218,897,564.10 |
Procurement Plan
| Title | Document Type | Document Date |
|---|---|---|
| Balakot Hydropower Development Project: Procurement Plan | Procurement Plans | Mar 2021 |