KP expects to generate Rs50bn from 12 ongoing power projects

PESHAWAR: Dr. Syed Sarfaraz Ali Shah, the caretaker advisor for planning and development in the Energy and Power Department in Khyber Pakhtunkhwa, has said that KP will annually earn Rs50 billion from hydropower as soon as the 12 ongoing projects are completed. The province possesses significant potential in mineral and water resources, serving as a major source of income.

He visited the Daily Jang and The News offices and, during a chat with this correspondent, mentioned that the caretaker government is committed to setting a milestone for development and prosperity for the masses of the province while also establishing an ideal setup for the incoming governments. Timely completion of ongoing development projects and the establishment of institutional good governance are top priorities.

He explained that a comprehensive strategy has been formulated to increase the annual income of the Mineral Department from Rs 4 to 6 billion, including a boost in annual income from hydropower projects to Rs 50 billion. This move is anticipated to be a game-changer for the economic development of the province, creating new employment opportunities in the coming years.

Responding to a question, he emphasised that the primary duty of the present caretaker provincial government is to conduct free and transparent elections in the province, utilising all available resources for this purpose.

Dr. Sarfaraz Shah, with a background in the economic sector, expressed his efforts to maximise the utilisation of the province’s natural resources to create an economic revolution. He has worked towards quickly identifying valuable mineral reserves through surveys across the province, particularly in the merged tribal districts.

Dr. Sarfaraz Shah highlighted the reforms in the prevailing leasing policy while promoting investment in mineral development. He emphasised the significance of the energy sector, noting that the Pakhtunkhwa Energy Development Organisation (PEDO), a subsidiary of the Energy & Power Department KP, is a profitable provincial organization. PEDO has completed 7 hydropower projects, generating a total of 161 megawatts of electricity and contributing more than Rs. 4 billion annually to the province.

He shared details of the 12 ongoing projects, including Balakot Mansehra (300 MW), Madyen Swat (157 MW), Gabral Kalam (88 MW), Matiltan Swat (84 MW), Lawi Chitral (69 MW), Koto Dir (40.8 MW), Krora Shangla (11.8 MW), Chapri Charkhel Kuram (10.5 MW), and Mujahideen Torghar (6.9 MW). Additionally, PEDO has prepared a business and financial plan for the next 10 years, anticipating the completion of several projects with a total capacity of 2000 megawatts, contributing Rs. 50 billion annually to the province.

Dr. Sarfaraz Shah also mentioned that several energy projects are nearing completion and plans are underway to sell cheap electricity to the industrial sector at favourable rates under the wheeling model. The establishment of Khyber Pakhtunkhwa Transmission and Grid Company (KPT&GC) is highlighted as a significant step to improve the electricity system in the province and facilitate the transmission of generated electricity.

In response to a question about financial challenges, the provincial caretaker adviser acknowledged that the province is facing severe financial challenges.

The provincial government has approached the federal government to release the pending amount of billions of rupees for hydropower, but the dues have not been cleared yet. In the oil and gas sector, steps are being taken to discover new blocks and increase the royalty for the province, he concluded.