Controversy surfaces over outsourcing of Pedo hydropower projects

Published May 13, 2026 Updated May 13, 2026 09:44am
A view of the power house. — Dawn
A view of the power house. — Dawn

PESHAWAR: A controversy has erupted over the outsourcing of three of the Pakhtunkhwa Energy Development Organisation’s (Pedo) recently commissioned hydropower projects as over 70 officials of the entity have approached the provincial government, alleging “external interference and pressure on key offices”.

In a five-page letter, addressed to KP secretary energy and power department, 75 senior Pedo officers and other staff said that they were placing on record their serious concerns and strong objections to the “ongoing actions by external elements aimed at undermining approved decisions of the policy board’s 46th and 13th meetings regarding indigenous (self) operation and maintenance (O&M) model”.

They alleged that the Pedo’s key offices, including the chief executive officer’s, were operating under undue external influence and pressure and thus, adversely affecting independent decision-making and implementation of the approved policy board directives.

The officials said that the entity recently commissioned three run-of-the-river hydropower projects, including Koto, Karora and Jabori, with a total capacity of 62.8 megawatts.

Officials reach out to govt over ‘external interference’

“These projects are presently operating under defect liability period (DLP) through in house operational arrangements and are connected to the national grid under the take and pay power acquisition contract with Peshawar Electric Supply Company,” the letter said.

The letter said that in July 2020, the Pedo Policy Board adopted the Daral Khwar hydropower project as a pilot project for the indigenous O&M model. It said following the success of indigenous model, the policy board, in its 13th meeting in September 2023, decided to run Koto, Jabori and Karora HPPs on a self O&M basis instead of the outsourced model.

Besides, it said that for the same purpose, Pedo also started the hiring process of staff which was currently in the interview phase.

These officials demanded the provincial government that the decisions of the Pedo Policy Board taken in its 46th meeting reaffirmed in the 13th meeting, along with subsequent budgetary approvals, must be implemented in letter and spirit without deviation.

“Indigenous O&M model should not be altered, diluted or reversed at any stage. The model must instead be continued, strengthened and institutionalised as the standard framework of the Pedo projects,” the officials demanded.

Besides, they said any external influence or interference in administrative and or policy implementation matters may be immediately discontinued and all concerned forums including human resource, administration, CEO office and the executive committee be allowed to function with full independence in accordance with the approved Policy Board decisions without external influence and pressure.

They also demanded that necessary directions may be issued to ensure restoration of institutional autonomy, policy continuity and transparent, merit based implementation mechanisms.

Pedo CEO Anwarul Haq told Dawn that the Malakand–III and Pehur hydropower projects developed by the Pedo were outsourced before being run by the contractors.

He said that Daral Khawar project was the first of entity projects to be run indigenously by the entity staff.

“The experience of self-running of Daral Khawar was very successful,” he said.

Mr Haq said that the recently commissioned Koto, Karora and Jabori projects were currently operated on DLP basis, where the contractor bore the risk and cost.

He, however, said that for the successful operation of those projects, Pedo required trained staff members as they were big power houses, generating several megawatts of electricity each.

“We need at least 150 staff members to run these projects indigenously,” he said.

The CEO said currently, the hiring of staff was in progress. He, however, said that in the transition period, the entity should go for a hybrid model.

“I am sure the future of Pedo lies in indigenously operating its projects and only this way the organisation can develop and expand. However, this could not be done overnight,” he said.

When contacted, secretary of the energy and power department Nisar Ahmad claimed that there were no “external influences at play in Pedo affairs”.

Published in Dawn, May 13th, 2026

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