Budget 2017-18: K-P proposes 57 projects in power sector

Majority of the proposed projects are to be financed from the K-P Energy Development Fund

PESHAWAR: In the upcoming fiscal year 2017-18, the Khyber-Pakhtunkhwa (K-P) government has proposed allocations for 57 development projects in energy and power sector. These projects include 24 new and 33 existing projects.

The K-P Energy and Power Department has sent its proposals for the development schemes to the K-P Planning and Development Department (P&D) in order to be included for completion in the Annual Development Programme (ADP) for 2017-18.

According to the documents sent to the P&D – a copy of which is available with The Express Tribune – the proposed schemes would cost around Rs209.5 billion, including Rs50.3 billion for the ongoing schemes and Rs159.2 billion for the new projects.



Majority of the proposed projects would be financed from the K-P Energy Development Fund – formerly known as Hydel Development Fund (HDF) — and would also be financed through foreign funds.

“Only token money would be allocated for the projects in the ADP. Most of them will be financed from the K-P Energy Development Fund (KPEDF) and would also be foreign-funded,” said an official of the K-P Energy and Power Department, requesting not to be named.

The proposals include development projects in hydel, oil and gas and solar sectors. In hydel sector, the proposed new projects include construction of 300MW Balakot Hydro Power Project (HPP), 22MW Patrak-Shiringal HPP and 47MW Barikot-Patrak HPP.



The Asian Development Bank is providing 80% of the finances for the Balakot HPP while the World Bank will provide 80% finances for the other two HPPs and the remaining 20% would be provided from the KPEDF.

In the oil and gas sector, the prominent projects include Rs5.5 billion investment in the oil and gas exploration in Lakki Petroleum Block.

In a meeting of KPEDF board — held on April 10,2017 with K-P Chief Minister Pervez Khattak in the chair — it was decided that the K-P government would get 100% share of a petroleum concession block in the province, and Lakki block was selected, said the official who was present in the meeting.



“Currently, we have only 2.5% shares in the already operational blocks, so we don’t get much revenue. Having our own block would not only increase our profit but would also increase the confidence of investors, who are aspiring to invest in oil and gas sector in K-P,” said the official.

He said the department would conduct seismic study of the Lakki block in the next six months and if it was positive then the government would get 100% shares of the block. It also includes a project of investing Rs4.2 billion to purchase shares in the producing fields of the province.

The projects also include construction of 400MW gas turbine combined cycle power plant in Kohat. The project would need 50MMCFD gas and cost around Rs12.5 billion, all provided from the KPEDF.



It also includes construction of Urea Fertilizer Plant in Hangu. Costing Rs15.7 billion, it would produce 500,000 metric ton urea per annum.

The proposals also include a project for development of surface facilities for all active oil and gas seepages across the province. The K-P has 24 active seepages sites of oil and gas for which the project will be initiated at a cost of Rs5 billion.

In the oil and gas sector, the projects also include construction of a warehouse in Kohat or Karak for keeping machinery and vehicles which are to be used in oil and gas sector.



The government would also establish a seismic recorder unit at a cost of Rs1,000 million for measuring and analysing seismic activities in the oil and gas blocks in the province.

In the solar sector, the government has proposed solar electrification of 1,000 mosques across the province. The project would be funded from the KPEDF and would cost Rs967.6 million.