Major Step for China-Built Balakot Dam: River Flow Diverted to Begin Full Construction

Tue Oct 28 2025
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key points

  • 300-MW Balakot achieves river closure milestone on the Kunhar River
  • Project ranks after Dasu and Tarbela among KP’s hydropower developments
  • Expected to generate 1.144 billion kWh annually and supply 1.8 million people
  • CEEC, PEDO say project advancing toward full commissioning by 2028

ISLAMABAD: The China-built 300-megawatt Balakot Hydropower Project in Khyber Pakhtunkhwa has reached the crucial “river closure” stage — a major engineering milestone that allows full-scale dam construction to begin on the Kunhar River.

Developed jointly by the China Energy Engineering Corporation (CEEC) and the Pakhtunkhwa Energy Development Organisation (PEDO), the project is expected to generate 1.144 billion kilowatt-hours of clean electricity annually, supplying power to nearly 1.8 million people when

According to a statement by the CEEC, the 300-megawatt run-of-river project is being implemented by China Gezhouba Group Third Engineering Co., Ltd, a subsidiary of CEEC, in partnership with the Pakhtunkhwa Energy Development Organisation (PEDO). The project began construction in September 2021 under a development framework supported by the Government of Khyber Pakhtunkhwa.

Syed Habib Ullah Shah, Chief Executive Officer of PEDO, told China Economic Net that Balakot is “the largest new hydropower project under construction in KP after Dasu and Tarbela.” The plant will help meet Pakistan’s rising electricity demand, reduce the import bill, and support long-term energy security, he added.

“Balakot represents a cornerstone of KP’s green transition—supporting national goals for sustainable growth, emissions reduction, and climate resilience,” Shah said.

The project had created more than 2,000 local jobs and contributed to regional infrastructure development through the use of local suppliers and contractors, said the statement.

Once operational, the Balakot Hydropower Project will generate approximately 1.144 billion kilowatt-hours (kWh) of electricity per year—enough to power around 1.8 million people, according to official PEDO figures.

KP emerging as hydropower hub

Data compiled by the Water and Power Development Authority (WAPDA) shows that Khyber Pakhtunkhwa hosts the bulk of Pakistan’s ongoing hydropower expansion. These include the 4,320-MW Dasu project in Upper Kohistan, the Tarbela 5th Extension (which will lift total capacity beyond 7,800 MW), the 800-MW Mohmand (Munda) Dam, and the 1,450-MW Ghazi–Barotha project, located on the KP–Punjab boundary. The 4,800-MW Diamer–Bhasha Dam, located on the border of Gilgit-Baltistan and KP, is also under construction.

Energy planners told Business Recorder that, once completed, these projects could collectively add over 16,000 MW of clean power to the national grid, transforming Pakistan’s renewable-energy landscape and ensuring long-term water and energy security.

Prospects

According to CEEC engineers and PEDO officials, diversion tunnels and dam works at Balakot are expected to be completed within two years, with full commissioning targeted for 2028.
Analysts quoted by China Daily stated that the project will enhance northern grid stability and deepen Sino-Pak energy cooperation under the framework of the China-Pakistan Economic Corridor (CPEC).

⚙️ Sidebar: Khyber Pakhtunkhwa’s and Adjoining Regions’ Major Hydropower Projects

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