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German Bank Approves Rs 6.6 Billion Grant under UN Energy Program

Peshawar: The Khyber Pakhtunkhwa government has announced the construction of a 5-megawatt (MW) Naran Hydropower Project in the scenic Naran Valley, a major step toward strengthening the province's clean energy portfolio. The project, supported by a Rs 6.6 billion grant from the German Development Bank (KfW) under the United Nations' Sustainable Energy for All program, aims to provide uninterrupted and affordable electricity to residents and tourists through a direct supply system.

Special Assistant to Chief Minister on Energy, Engineer Tariq Sadozai, said the initiative would not only promote sustainable energy but also stimulate the region's tourism and create new employment opportunities. He stated that the project will operate independently of the national grid and be completed under the province's Clean and Green Energy Program, ensuring round-the-clock electricity supply to Naran Valley.

Speaking at a review meeting, Sadozai was joined by Secretary Energy and Power Muhammad Zubair Khan, Chief Executive PEDO Engineer Habibullah Shah, Additional Secretary Anwar Khan Sherani, Chief Engineer Aziz Shah, and other senior officials.

During the briefing, Director Business Planning Faraz Ahmad Khan and Director Development Safdar Hayat Pado informed the participants that six potential sites had been surveyed under the UN initiative for small-scale hydropower projects in energy-deprived regions of Khyber Pakhtunkhwa. Following technical evaluation, Naran Valley was selected for the 5 MW project.

They said the German Development Bank (KfW) had approved a grant of pound 20 million (approximately Rs 6.6 billion) for the project, with feasibility work expected to begin soon. The project will be completed entirely through foreign assistance at no cost to the provincial government, marking a significant milestone in clean energy development for the region.

Faraz further added that the new hydropower facility will generate electricity through a dedicated supply line, enabling 24-hour power provision at affordable rates for both residents and tourists.

Concluding the meeting, Special Assistant Engineer Tariq Sadozai directed relevant authorities to request further collaboration from the German Bank for a 50 MW solar park project to promote industrial growth in the province and provide cost-effective electricity to offset regional disadvantages.