The Khyber Pakhtunkhwa government has formally requested the National Electric Power Regulatory Authority (NEPRA) to approve a levelized tariff of Rs17.71 per unit for its 300MW Balakot Hydropower Project (BHPP), which carries an estimated cost of $612.56 million. NEPRA has admitted the tariff petition and scheduled a public hearing for July 2, 2026.
Petition Details and Tariff Claims
The petition was submitted by the Pakhtunkhwa Energy Development Organization (PEDO) for the project located in Balakot, district Mansehra, Khyber Pakhtunkhwa. According to the salient features released by NEPRA, PEDO has claimed a levelized tariff of Rs17.7103 per unit (equivalent to 6.3576 US cents per unit) for a 30-year control period. The plant factor has been stated as 43.5 percent, with auxiliary consumption at 2 percent.
As per the petition, the total estimated project cost stands at $612.56 million. This includes $513.22 million for EPC contract/construction, $57.09 million for land acquisition, resettlement, and legal charges, $22.104 million for PEDO overheads and administrative charges, and $20.15 million for soft costs.
Project Background and Development History
The Balakot Hydropower Project was first identified in 1995 with technical collaboration from the German Agency for Technical Cooperation (GTZ). PEDO conducted the feasibility study in 2013 through a joint venture of consultants. In 2017, under the Hydropower Development Investment Program, the Asian Development Bank (ADB) expressed interest and appointed Aqualogus, a Portuguese consultant, as a project preparatory consultant to conduct a review and technical due diligence of the 2013 feasibility study.
ADB updated the feasibility study report in July 2019 under the same program. The project is a run-of-river scheme to be constructed on the Kunhar River, with a power generation capacity of 300MW and average annual energy production of 1,143 GWh. The electricity will be evacuated through a system of substations and transmission lines for interconnection with national and regional grids.
Location and Technical Specifications
The project is located on the Kunhar River along a 12 km stretch from Paras to Sangarh village in Kaghan Valley, between Balakot and Kaghan, in Mansehra district of Khyber Pakhtunkhwa. The dam site is near the village of Paras, and the powerhouse site is near Kappi Gali Village. A headrace tunnel extending more than 9.1 km will divert water from the reservoir created by the dam to the powerhouse.
The project is funded through loans from ADB and the Asian Infrastructure Investment Bank (AIIB). Its expected commercial operation date (CoD) is December 2027. It is estimated that the project will generate an annual revenue of $84.239 million.
NEPRA Procedures and Public Participation
Under NEPRA rules, any interested or affected party may file an intervention request within seven days of the notice's publication. The request must detail the person's name, address, objections, and how they are likely to be affected, supported by an affidavit. A copy must also be served to the petitioner. Comments may also be filed within seven days. The Authority may permit participation based on such comments and consider them in the final determination.
