The federal government has excluded two major hydropower projects under the China-Pakistan Economic Corridor (CPEC) the 1,124 MW Kohala and 700.7 MW Azad Pattan, worth a combined $4 billion from the Indicative Generation Capacity Expansion Plan (IGCEP) 2025–35, citing failure to achieve financial closure.
“We have excluded these projects till 2034, along with other private sector ventures,” Federal Minister for Power Sardar Awais Khan Leghari told the Senate Standing Committee on Power, chaired by Senator Mohsin Aziz.
The session witnessed heated debate over the exclusion of 207 MW Madyan and 88 MW Gabral-Kalam hydropower projects in Khyber Pakhtunkhwa (KPK). Brig Tariq Saddozai (Retd), Special Assistant to the KPK Chief Minister on Energy and Power, argued that both projects had already been listed as committed under the Council of Common Interests (CCI) 2021 criteria and protected under the National Electricity Plan 2023–27. He said the provincial government had already invested Rs 14 billion in land and infrastructure, accusing the federal government of “moving the goalposts.”
Minister Leghari and the Power Secretary countered that the projects, though funded by the World Bank, had not signed binding contracts and did not qualify under the least-cost project framework. They clarified that the IGCEP requires approval from NEPRA after a public hearing where all stakeholders can contest exclusions.
On Net Hydel Profit (NHP), CPPA-G CEO Rehmat Akhtar confirmed payments at Rs 1.10/kWh with 5% annual indexation, adding that Rs 40 billion in arrears had already been accepted. He said the rate would rise to Rs 1.70/kWh after finalization of FY2023–24 and FY2024–25 determinations.
KPK claimed its NHP dues stand at Rs 76 billion, while WAPDA put the figure at Rs 63 billion.
