Balakot Hydropower Tariff Lower than CPEC and Patrind Projects
The Khyber Pakhtunkhwa government reports that the Balakot Hydropower Project's tariff is 28% lower than CPEC's Suki Kinari HPP and 25% lower than Patrind HPP. The project aims to generate 1,008 GWh annually, achieving significant cost savings through improved financing terms.
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The proposed levelized tariff for the Balakot Hydropower Project (BHPP) is Rs 17.7103 per kWh (6.3576 US cents), significantly lower than Suki Kinari's 8.85 US cents and Patrind's 8.35 US cents. The project's estimated cost is $612.56 million, with a completion timeline of 75 months and a plant factor of 43.5%.
Financing includes 89.79% debt at a spread of 0.75% and 10.21% equity, with a 20-year repayment period. Savings of $603 million over the project's lifetime are anticipated, primarily from reduced debt servicing and lower return on equity. Concerns have been raised regarding the project's necessity and financial data accuracy, prompting calls for NEPRA to enhance transparency in project management.
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