PESHAWAR - An agreement for 870 MW Suki Kinari Hydropower Project was signed between the Government of Khyber Pakhtunkhwa, SK Hydro Pvt Limited and Industrial & Commercial Bank of China Limited here on Wednesday.

Provincial Minister for Energy, Power and Education Muhammad Atif Khan was also present on the occasion.

Under the agreement , the mega project would be completed at a cost of Rs200 billion within five years. The province, besides getting Rs1.5 billion annually as water used charges, will also get additional 113MW of electricity. The electricity procured from the project would be transferred to the national grid for further distribution to the entire country. After 30 years, this project would be handed over to the Govt of KPK free of cost and its full income would be given to the province.

Talking to media on the occasion, Energy and Power Minister Atif Khan said that the project was not only useful for Khyber Pakhtunkhwa but for the entire country. “It would prove helpful in removing electricity shortfall in the country,” he hoped.  He disclosed that the KP government was soon going to ink agreements for 69MW Lawi, 84MW Mataltan, 300MW Balakot and Sharmai Hydropower projects, while work on these projects would also start soon.

Khan maintained that hydel power generation was not only the cheap source but it also had a positive environmental impact as compared to coal power, adding that it would also save forex reserves.

The minister said that these projects would go a long way in economic development of the country side by side improving lot of the common man.