The North West Frontier Province (NWFP) government of Pakistan is preparing a draft policy for exploiting the province’s hydro power potential as a cheap source of energy for industrial development. Under the policy, potential small hydro power sites will be identified on the upper Swat Canal (Machay branch) for interested private sector parties. Around 25 to 30 water fall sites on the Machay branch have already been identified and three will be offered initially to interested private parties.

The main objectives of the policy include the following: • Utilise the NWFP’s hydro power potential.

  • Encourage industrialists to develop their own power generation units, which would be cost effective in comparison with the electricity rates charged by the Water & Power Development Authority.

The policy, which is being jointly prepared by the provincial power department, Sarhad Development Authority and the provincial irrigation department is nearing completion and will be announced after its approval by the NWFP.