The Minister for Economic Affairs, Omar Ayub Khan, and the Chief Minister(CM) of Khyber Pakhtunkhwa (KP), Mahmood Khan, witnessed the signing of thefinancing agreement of the Balakot Hydropower Development Project amountingto $300 million.
The loan agreement was signed by the Economic Affairs Division (EAD)Secretary, Noor Ahmed, and the Asian Development Bank (ADB) Acting CountryDirector, Cleo Kawawaki. The total cost of this project is $755 million,out of which the ADB has committed to providing $300 million, while theAIIB will provide $280 million.
For this project, the ADB is providing financing at highly concessionalrates — LIBOR (6-Month) + 0.5 percent per annum (currently 0.7 percent perannum) — for a period of 27 years including a grace period of seven years.——————————
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While speaking on the occasion, the Minister for Economic Affairs expressedthat this run-of-river hydropower project will be constructed on the KunharRiver in District Mansehra, and will generate 300 MW electricity.
The Balakot Hydropower Project will not only help unleash the hydropowerpotential of the country but will also improve energy security byincreasing clean and affordable energy share in the country’s energy mix.
He said, “The government is working on renewable energy policy to harnessthe immense potential in solar, wind, and hydel resources and have goodopportunities for investments”.
The minister also appreciated the ADB’s valuable support for financing thishighly important project.
CM Khan reiterated that the Government of KP is working on the developmentof KP’s hydropower potential on fast track basis. He also mentioned thatthe PTI government has already been making huge investments in thedevelopment of various hydro sites in the province. The Balakot Hydropowerproject will provide a livelihood by providing more than 1,200 jobs duringthe construction of the project in KP.
Once completed, this hydropower project will provide reliable and cheapenergy to the national grid. It will also improve the provincial revenuestreams for the provincial government and will boost economic activities inthe country.——————————
CM Khan said, “This project shows the strong commitment of PTI Governmentto address the challenges of climate change through the development ofclean and renewable energy in line with the vision of Prime Minister ImranKhan”.
The ADB Director, General Eugene Zhukov, affirmed the ADB’s continuedsupport to help Pakistan diversify its energy sources, increase energysecurity through renewable and affordable energy mix, and implementcritical economic reforms. He thanked the Minister for Economic Affairs andreiterated the ADB’s commitment to further strengthening and expanding itspartnership with Pakistan in the priority sector for the socio-economicdevelopment of the country.
The Energy and Power Department, the Government of KP will be the executingagency while the Pakhtunkhwa Energy Department Organization (PEDO) will bethe implementing agency for the project which is expected to becommissioned by 2026.