Balakot Hydropower Project Reaches Major Construction Milestone

Successful river diversion marks new progress in Pakistan’s energy development

Balakot Hydropower Project Reaches Major Construction Milestone


The Balakot Hydropower Project (BHPP) has reached a defining moment as the River Kunhar was successfully diverted into a newly constructed tunnel — a milestone that marks the transition to the dam’s main construction phase.

On a bright morning in Balakot, with mountains standing tall under a clear sky, heavy machinery lined the banks of the River Kunhar as the final shovel of earth was dropped, changing the river’s course through the diversion tunnel. This crucial step signifies the start of full-scale dam construction under the supervision of China Gezhouba Group Company Limited (CGGC), a core subsidiary of China Energy Engineering Group.

The river diversion was executed using a single-side blocking method, with cofferdams built from both banks toward a pre-designed sluice opening. These operations followed precise hydraulic calculations to ensure stability and efficiency during the process.

The milestone ceremony was attended by Chinese officials and representatives from Pakhtunkhwa Energy Development Organization (PEDO), which oversees the 300 MW project with funding support from the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB).

According to CGGC, the project has already generated over 2,000 local jobs, driving growth across supporting industries including power, construction materials, and logistics.

Habibullah Shah, CEO of PEDO and Project Director of BHPP, described the achievement as “a visible transition from early-stage preparations to the core construction phase,” emphasizing the seamless coordination between all partners involved.

Located along the Kunhar River in Khyber Pakhtunkhwa, the Balakot Hydropower Project features a 49-meter-high dam, an underground powerhouse, and a 9.1-kilometre headrace tunnel. This is CGGC’s second successful river diversion on the Kunhar River, following the 884 MW Suki Kinari Hydropower Station completed in 2024 — further strengthening Pakistan’s journey towards sustainable and self-reliant energy.