Pakistan’s Balakot Hydropower Project

Pakistan and Asian Development Bank (ADB) have signed the $300 million; financing agreement of the Balakot hydropower development project; as per sources. Firstly, The total cost of the Balakot hydropower development project is US$ 755 million out of which ADB has committed to providing $300 million; while the Asian Infrastructure Investment Bank (AIIB) will finance $280 million. Secondly, Omar Ayub Khan, while speaking on the occasion said; that the run-of-river hydropower project will be constructed on the Kunhar River; in the Mansehra district and generate 300 megawatts of electricity.

Thirdly, The LARP estimates that the Project will require the acquisition; of about 33 hectares of land affecting an estimated 165 households (887 persons). Moreover, This will have a significant impact on cultivated and uncultivated land; residential structures, commercial structures, fruit trees, timber/wood trees, schools, basic health units/dispensaries, madrasas, mosques, cemeteries; and utilities used by the Project-affected communities. Furthermore, The livelihoods of people engaged in local industries relying on the river, flow will also be negatively affected.

Project Description:

The Project will:

• improve energy security by increasing the clean energy share; in the country’s energy mix which is currently dominated by thermal power generation;
• boost the provincial economy and promote revenue-generating investments in the hydro-abundant province of KPK;
• build capacity and awareness on climate change impacts, adaptation and mitigation measures. The Project also targets improvements in the quality of life for women in communities surrounding the Project area and the promotion of gender mainstreaming.

I conclusion,  The key negative impacts identified at this stage of this initiation include loss of a portion of the riverine ecosystem due to inundation by the reservoir and degradation of the river ecosystem in the low-flow segment downstream of the dam. These would include impacts to fish breeding grounds, disruption of the water supply for mountain spring users, and impacts from tunnelling activities, including stockpiling of earth and stone, that may lead to increased erosion and sediment load entering the river.