How PTI’s ‘350 dams’ project turned out to be a disaster

PESHAWAR: Former prime minister and the Pakistan Tehreek-e-Insaf (PTI) chairman has sometimes been known to use wrong nomenclatures in reference to projects, leading him to be a target for ridicule. A notable instance from 2014 was his announcement of 350 ‘dams’ in Khyber Pukhtunkhwa (KP), a project that has led to hundreds of millions in losses to the exchequer.

More accurately, the centrepiece project was aimed not at dams, but at constructing 356 mini hydropower projects (MHP) with the objective of generating 33 megawatts (MW) of electricity across 11 districts of the Malakand and Hazara divisions. This was set with an estimated budget of Rs5 billion, financed as a loan from the Asian Development Bank (ADB).

Physical work on the project began in 2015 by the Pakhtunkhwa Energy and Development Organization (PEDO). By the end of the project’s first phase, 316 of the 356 projects had been completed at a cost of Rs4.4 billion. Yet, of these, only 202 were rendered operational.

Further compounding the issue, PEDO reportedly did not carry out feasibility studies for the entirety of phase one, which led to the selection of unsuitable locations. Consequently, 114 of these mini power schemes were damaged in last year’s flooding, incurring a financial toll of Rs700 million on the KP government.

Faisal Dawar, Project Director of Mini Hydropower Projects, told HUM News English, “29 megawatts of electricity was planned to be generated from phase one, but due to floods and other factors, we fell short of that mark.”

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Sources privy to the development maintain that during the last days of the PTI government, KP’s then secretary energy and power opposed the launch of the project’s second phase. However, after his transfer, PEDO resumed work, initiating the second phase.

PEDO Chief Executive Officer (CEO) Engineer Naeem Khan, remarked that “the project director and other officials deemed negligent were dismissed prior to the commencement of the second phase.”

The fate of these officials remains uncertain, with no clarity regarding further accountability.

Dawar has estimated a budget of Rs10 billion for 300 analogous schemes spanning 21 districts of the province in the ongoing phase. Projections estimate a power generation capacity of 50 megawatts, with the project’s conclusion anticipated by 2026.

Experts have questioned the viability and sustainability of these MHPs, given their high cost, low output, and environmental impact.

They have also pointed out that PEDO has not conducted any proper assessment or evaluation of the first phase before launching the second phase.

The Auditor General of Pakistan has also raised serious objections to the MHPs phase one project in his audit reports for the past two years. It has highlighted various financial irregularities, deficiencies, and financial losses in the project.