Independent Report
Islamabad, October 27, 2025
The Balakot Hydropower Project (BHPP) has achieved a major construction milestone with the successful diversion of River Kunhar into a newly built tunnel — marking the transition into the dam’s main construction phase.
The project, being implemented by China Gezhouba Group Company Limited (CGGC) under the Pakhtunkhwa Energy Development Organization (PEDO), is supported by the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB).
The diversion ceremony was attended by officials from Pakistan and China. Habibullah Shah, CEO PEDO and Project Director BHPP, termed the achievement “a visible transition from early-stage preparations to the core construction phase,” reflecting strong coordination among all partners.
The 300 MW project features a 49-meter-high dam, an underground powerhouse, and a 9.1-kilometer headrace tunnel. It has already created over 2,000 local jobs and boosted surrounding industries, including construction and services.
The BHPP is CGGC’s second successful diversion on the Kunhar River, following the 884 MW Suki Kinari Hydropower Station, completed in 2024.
 
			