Pakistan : Balakot Hydropower Development Project

Sovereign 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

Related Projects

Project Name
Balakot Hydropower Development Project
Project Number
49055-007
Country / Economy
  • Pakistan
Project Status
Active
Project Type / Modality of Assistance
  • Loan
Source of Funding / Amount
Loan 4057-PAK: Balakot Hydropower Development Project
Source Amount
Ordinary capital resources US$ 300.00 million
Loan 8397-PAK: Balakot Hydropower Development Project
Source Amount
Asian Infrastructure Investment Bank US$ 250.00 million
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
Sector / Subsector
  • Energy / Large hydropower generation

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.

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

Contact

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

Funding

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
  Total (Amount in US$ million)
Project Cost 475.00
ADB 300.00
Counterpart 175.00
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 06 Jun 2024 222.40 0.00 74%
Cumulative Disbursements 06 Jun 2024 83.43 0.00 28%
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
  Total (Amount in US$ million)
Project Cost 250.00
ADB 0.00
Counterpart 0.00
Cofinancing 250.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 06 Jun 2024 0.00 195.64 78%
Cumulative Disbursements 06 Jun 2024 0.00 13.33 5%

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.

Title Document Type Document Date
Balakot Hydropower Development Project: External Environmental Monitoring Report (July-December 2023) Environmental Monitoring Reports May 2024
Balakot Hydropower Development Project: Environmental Monitoring Report (July-December 2023) Environmental Monitoring Reports Mar 2024
Balakot Hydropower Development Project: Semi-Annual External Monitoring Report on Land Acquisition and Resettlement Plan Implementation (July-December 2023) Social Monitoring Reports Mar 2024
Balakot Hydropower Development Project: Semi-Annual Internal Monitoring Report on Land Acquisition and Resettlement Plan Implementation (July-December 2023) Social Monitoring Reports Jan 2024
Balakot Hydropower Development Project: Semi-Annual External Monitoring Report on Land Acquisition and Resettlement Plan Implementation (January-June 2023) Social Monitoring Reports Dec 2023
Balakot Hydropower Development Project: External Environmental Monitoring Report (January-June 2023) Environmental Monitoring Reports Dec 2023
Balakot Hydropower Development Project: Environmental Monitoring Report (January-June 2023) Environmental Monitoring Reports Oct 2023
Balakot Hydropower Development Project: Semi-Annual Internal Monitoring Report on Land Acquisition and Resettlement Plan Implementation (January-June 2023) Social Monitoring Reports Sep 2023
Balakot Hydropower Development Project: Semi-Annual External Monitoring Report on Land Acquisition and Resettlement Plan Implementation (July-December 2022) Social Monitoring Reports Apr 2023
Balakot Hydropower Development Project: Environmental Monitoring Report (July-December 2022) Environmental Monitoring Reports Apr 2023
Balakot Hydropower Development Project: Semi-Annual Internal Monitoring Report on Land Acquisition and Resettlement Plan Implementation (July-December 2022) Social Monitoring Reports Feb 2023
Balakot Hydropower Development Project: Mouza Ghanool External Monitoring Report on Land Acquisition and Resettlement Plan Implementation (July-September 2022) Social Monitoring Reports Feb 2023
Balakot Hydropower Development Project: Mouza Sangar External Monitoring Report on Land Acquisition and Resettlement Plan Implementation (July-October 2022) Social Monitoring Reports Jan 2023
Balakot Hydropower Development Project: Mouza Sangar Internal Monitoring Report on Land Acquisition and Resettlement Plan Implementation (July-October 2022) Social Monitoring Reports Nov 2022
Balakot Hydropower Development Project: Social Monitoring Report (January-June 2022) Social Monitoring Reports Nov 2022
Balakot Hydropower Development Project: Mouza Ghanool Internal Monitoring Report on Land Acquisition and Resettlement Plan Implementation (July-October 2022) Social Monitoring Reports Nov 2022
Balakot Hydropower Development Project: Mouza Paras and Bela Sacha Land Acquisition and Resettlement Plan Resettlement Plans Aug 2022
Balakot Hydropower Development Project: Mouza Ghanool and Sangar Land Acquisition and Resettlement Plan Resettlement Plans Aug 2022
Balakot Hydropower Development Project: Environmental Monitoring Report (January-June 2022) Environmental Monitoring Reports Jul 2022
Balakot Hydropower Development Project: Social Monitoring Report (July-December 2021) Social Monitoring Reports Jul 2022
Balakot Hydropower Development Project: Environmental Monitoring Report (September 2020-December 2021) Environmental Monitoring Reports Mar 2022
Balakot Hydropower Development Project: Environmental Impact Assessment Environmental Impact Assessments Nov 2019
Balakot Hydropower Development Project: Environmental Impact Assessment Environmental Impact Assessments Sep 2019
Hydropower Development Investment Project: Final Land Acquisition and Resettlement Plan Resettlement Plans Jul 2019

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 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$) Contract Amount Financed by ADB (US$)
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
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 & 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