Hydel power projects in K-P on cards

PTI-led govt will construct 300 mini-micro hydro power projects over canals

PESHAWAR: The cash-strapped Khyber-Pakhtunkhwa government has decided to spend billions of rupees on setting up mini-micro hydel power stations on canals in Charsadda, Peshawar, Mardan and Swabi.

The Pakistan Tehreek-e-Insaf-led provincial government, which has less than two years at hand, is starting another scheme of constructing 300 mini-micro hydropower projects over canals in the plain districts of the province.

Officials told The Express Tribune the project, estimated to cost Rs7.2 billion, is one of the flagship projects of the provincial government. They added the government is carrying out negotiations for borrowing a huge amount from the Bank of Khyber.

One of the officials said Planning and Development Department Additional Chief Secretary Azam Khan held a meeting on Wednesday with the special committee constituted for the flagship projects of the government.

He added, “Since the project is PTI’s flagship so the government would push to complete it before completion of its term. We are discussing the terms and conditions for a loan of Rs7.2 billion which we would borrow from the Bank of Khyber.”

He added the project has an estimated capacity of generating 60 megawatts of electricity and the projects would be given to individuals. The government will publish an ad for the project and preference will be given to those people who have potential sites for setting up power stations, he informed The Express Tribune.

The official added, “The projects will be built on canals in Charsadda, Peshawar, Mardan and Swabi on places suitable for the stations.”

He added those who have their own sites will apply to the Pakhtunkhwa Energy Development Organisation (PEDO) and BoK for loan. However, he said those individuals who have sites will not need to obtain a no-objection certificate from PEDO. Meanwhile, those without sites will apply to PEDO for NoC. At the same time they will apply to BoK for loan and the loan will be interest free, added.

The official revealed the individual will pay 20% of the cost and BoK will provide 80% of the mini-micro hydropower station project. He said the individual will charge bills from people using electricity from the power stations and the bill money will be used for the payment of loan and maintenance of the power station.

Meanwhile, the official was not satisfied with the project since it is not much sustainable.

However, PEDO Chief Executive Officer Akbar Ayub said the power stations were self-sustainable.

“These projects are based on a self-sustainable model and NGOs have already been using the model,” he said.

According to Ayub, the project on canals is a part of a larger project whereby the government is working on 356 mini micro hydro power projects.

“At least 75 of them have been completed,” he said. “We are increasing the number of the projects to 1,000 and we have been negotiating with the Asian Development Bank who has liked our model and wants to improve it further. Their international consultants have visited our project sites.”

Published in The Express Tribune, July 15^th, 2016.