Agreement inked with ADP for Balakot power project

PESHAWAR: The financing agreement for the construction of 300 MW Balakot Hydropower Project has been signed between the Government of Pakistan and the Asian Development Bank (ADB).

Under the financing agreement, ADB would provide a loan of 300 million US dollar at highly concessional rates for a period of 27 years including a grace period of seven years, said an official handout.

The agreement signing ceremony was held in Islamabad on Friday with Chief Minister Mahmood Khan and Federal Minister for Economic Affairs Division Umar Ayub as chief guests. Federal Secretary, Economic Affairs Division, Noor Ahmad and acting Country Director, ADB, Cleo Kawawaki signed the agreement.

The Balakot Hydropower Project is a run-of-river project which will be constructed on the Kunhar River in Mansehra district with a total production capacity of 300 MW. The project will be completed in a period of six years with an estimated cost of Rs. 85.00 billion.

Speaking on the occasion, the chief minister termed the signing of financing agreement as an important development for the construction of mega project and said that groundbreaking of the scheme would be performed in the near future and hopefully, Prime Minister Imran Khan would himself perform the ceremony project.

Mahmood Khan said that Balakot Hydropower Project would provide over 1200 job opportunities during its construction period adding that once completed, it will provide reliable and cheap energy to the national grid.

“The project shows strong the commitment of the PTI government to address the challenges of climate challenges by producing clean and renewable energy in line with the vision of Prime Minister Imran Khan”, Mahmood Khan said and added that Balakot Hydropower Project would improve provincial revenues streams and boost economic activities in the country.

Federal Minister Umar Ayub said that the project would not only help unleash the hydropower potential of the country but also improve energy security by increasing clean and affordable energy share in the country’s energy mix.

He said that the government was working on a renewable energy policy to harness the immense potential in solar, wind and hydel resources. Umar Ayub appreciated the ADB’s support for financing this important project.