The World Bank has rated progress toward the development goals of Khyber Pakhtunkhwa’s Hydropower and Renewable Energy Development project as “moderately unsatisfactory,” while warning of “substantial risk” to a financing package of about $727 million meant to strengthen provincial institutions and expand renewable generation.
In a public disclosure, the Washington-based lender said segments of the loan were approved in 2020 with a targeted completion date of 30 November 2027. It rated overall implementation progress as “moderately satisfactory” and overall risk as “substantial.”
How the bank scored the risks
Political and governance risks and technical design risks were judged moderate. Substantial risks were linked to macroeconomic conditions, institutional capacity, fiduciary issues, and environmental and social factors. The bank rates each dimension on a four-point scale—high, substantial, moderate, or low—based on how likely a risk is and how severe its impact would be if it materialised.
At the government’s request, the bank processed a restructuring so the project’s scope and financing better match current implementation priorities.
What the loan was meant to build
The original package, approved on 24 September 2020, included about $594 million for hydropower and renewable energy investment, $59 million for environmental and social management, $55 million for institutional strengthening and project support, and roughly $15 million in financial charges on the bank loan.
A $200 million market-based loan became effective in September 2020, but only $3.95 million has been disbursed—less than two per cent. A $240 million concessional development loan, effective around the same time, has disbursed about $34 million, or roughly 14 per cent of its size.
The programme was designed to build capacity so the province can tap renewable potential through public hydropower and renewables—including the Gabral-Kalam Hydropower Plant, an 88-megawatt run-of-river scheme expected to generate 339 gigawatt hours a year—plus cascade development such as the 157-megawatt Madyan plant and other facilities on the Swat and related basins. The Swat River Basin’s hydropower potential was put at more than 2,000 megawatts. Floating or land-based solar photovoltaic systems on hydropower assets were also envisioned.
Momentum at Gabral-Kalam, focus ahead
The bank said implementation has gained momentum, with key milestones under Gabral-Kalam: civil works have begun, land acquisition has advanced, and procurement of electro-mechanical works has moved forward. It said the project will keep focusing on timely delivery, contract management, and environmental and social compliance.
Timeline: what has happened so far
- 24 September 2020: Original loan package for the KP hydropower and renewable energy programme approved.
- September 2020: Market-based $200 million loan and concessional $240 million loan become effective.
- 2020–2027 window: Project segments aim for completion by 30 November 2027.
- Recent bank update: Progress toward development objectives rated moderately unsatisfactory; overall risk substantial; restructuring processed at government request.
- Recent site update: Gabral-Kalam civil works started; land acquisition and electro-mechanical procurement advanced.
Aasan alfaaz mein
World Bank ne Khyber Pakhtunkhwa ke bade hydropower aur renewable energy project ki goal progress ko theek nahi kaha. Loan ka risk bhi unhon ne zyada bataya hai, aur paise abhi bohot kam nikalay gaye hain. Gabral-Kalam par kaam shuru ho chuka hai, lekin poora package 2027 tak mukammal hona hai. Agar yeh plant time par banen, to province ko zyada saaf bijli mil sakti hai; deri se woh faida bhi der se aata hai.
