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Balakot hydropower project enters main construction phase

Published on: October 27, 2025 4:04 AM

The Balakot Hydropower Project in Khyber Pakhtunkhwa Province has reached a key milestone as its dam successfully achieved river diversion and closure.

The project, jointly undertaken by Pakhtunkhwa Energy Development Organization (PEDO) and China Gezhouba Group Company Limited (CGGC), marked a major step toward the main phase of dam construction.

Located on the Kunhar River, the 300 MW Balakot Hydropower Station is the largest hydropower project currently under development by the Khyber Pakhtunkhwa government’s department PEDO and it is expected to be completed by 2030 at a cost of over US$ 750 million.

Once completed, it is expected to generate 1.144 billion kWh of electricity annually, enough to power around 1.8 million people. The dam stands 49 meters high and features an underground powerhouse equipped with three 100 MW Francis turbine generator units and a 9.1-kilometer headrace tunnel.

The successful river diversion enables the transition from “river diversion” to “dry-pit foundation construction,” paving the way for main dam works.

In this connection, a graceful ceremony was held here on Oct 25 (Saturday) at the project site where CGGC Representative Mao Huigang officially announced the closure of the river. He highlighted that the project is a flagship of China-Pakistan cooperation under the Belt and Road Initiative.

“Balakot Hydropower Project stands as a symbol of China-Pakistan friendship,” Mao said, noting that the project has created over 2,000 local jobs and boosted industries such as power, materials, and services.

Chief Executive Officer (CEO) of PEDO and Project Director Habibullah Shah praised CGGC’s contribution saying “China has always remained a reliable and time-tested friend of Pakistan. Our partnership here reflects sustained cooperation and mutual trust.” He said the project is being executed under the supervision of the provincial government while the funding was being provided mainly by the Asian Development Bank (ADB) and Asian Infrastructure Investment Bank (AIIB).

He informed that the project will produce 1.154 billion units of electricity annually thus generating Rs 20 billion revenue for the province.

This marks CGGC’s second successful diversion and closure of the Kunhar River. Upstream, the SK Hydropower Station, also built by CGGC, has been supplying 2.8 billion kWh of clean power to Pakistan since its operation began last year.

Over the past two decades, CGGC has been a major contributor to Pakistan’s infrastructure growth through projects such as Neelum-Jhelum, Mohmand, Karot, and Dasu Hydropower Stations, as well as the E35 Highway and M4 Motorway, strengthening the long-standing China-Pakistan partnership in sustainable energy development.

Filed Under: Business Tagged With: Balakot, Construction, hydropower, phase

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