The governments of Pakistan’s Northwest Frontier Province (NWFP) and Azad Kashmir are seeking bids for six hydropower projects to be constructed under a built-own-operate-transfer basis. Feasibility studies for all six schemes have been completed with the assistance of the Private Power and Infrastructure Board (PPIB) and the German technical agency GTZ. The six projects are: Khan Khwar (72 MWe), Golen Gol (106 MWe), Daral Khwar (35 MWe), Summar Gah (928 MWe), Allai Khwar (130-150 MWe), and Neelam-Jhelum (963 MWe). According to initial estimates, construction of all six will require an investment of $2 billion.
According to the PPIB, the bids will be evaluated on the basis of the levelized tariff, with a Letter of Support being issued to the bidder with who offers the lowest tariff.
Pakistan is trying to reduce its dependence on thermal power which is judged to be expensive. According to the most recent forecast by the Water and Power Development Authority, the country will face a shortfall of around 6000 MWe by 2005.
There is estimated to be an economically exploitable hydropower potential of around 20 000 MWe in Pakistan. Only 4825 MWe have been developed.