LAHORE: The 72 megawatt Khan Khwar hydropower project will be formally inaugurated on July 14, 2012. It has been constructed on Khan Khwar (Nullah), a right bank tributary of the Indus River near Besham town in District Shangla of Khyber Pakhtunkhwa – almost 265 kilometres from Islamabad and 350 kilometres from Peshawar on the Karakoram Highway. The project has been completed at a cost of Rs 10.73 billion, including Rs 5.049 billion as the foreign exchange component. The Islamic Development Bank provided a loan of 30.8 million dollars for the project. A lmost 306 million units of low-cost electricity per annum will be provided to the national grid by the project. In addition, its annual benefits have been estimated at more than Rs 2.75 billion. The main component of the project includes a 46-metre high and 112-metre long dam, about 5-kilometre long tunnel, a power house and a switchyard. The project is connected to the national grid through a 132/220 kilovolt transmission line constructed for three highhead hydropower projects. Being a part of the leastcost energy generation plan of the Water and Power Development Authority, the Khan Khwar hydropower project is being executed on a priority basis in view of the increasing electricity demand in the country. Under the plan, 17 large projects are under construction or at the engineering stage, which will generate more than 20,000 MW of electricity. Of them, six hydropower projects with a cumulative generation capacity of about 400 MW, will be completed during the current year.