PESHAWAR, April 4: The NWFP government has leased out four sites suitable for hydel power generation on the Machai branch of the upper canal system in Malakand, expecting to raise five million rupees per annum during the 33-year lease period.

Lease agreements were signed between private sector’s parties and the managing director of the Sarhad Hydel Development Organization (Shydo) at the Governor House here on Thursday.

The move of leasing out the four sites has come in line with the provincial government’s recently-formulated hydel power policy according to which, the electricity generated at the newly set up small power generation units would be utilized to boost the industrial sector.

According to an official handout, issued here on Thursday, the sites have been leased out to M/S Pak Hydro Steel, M/S Power Stream and M/S Martensite Steel Castings for 33 years. The power generating units at the four sites would jointly produce five mega watts electricity.

According to the handout, the sites are among the 18 sites Shydo has identified for leasing out for power generation on the Machai branch of the upper canal system.

The 18 sites involves waterfalls ranging between 1.2 to 3.65 meters, which have been designed in a way that these ensure uniform slope of the canal and that the power stations to be set up on these sites generate power from 0.685mw to 1.726mw, separately.

NWFP Governor Syed Iftikhar Hussain Shah described the move (of leasing out the sites) as a good beginning.

He hoped that more sites would be awarded to the private sector, as the government had evolved a policy to facilitate the potential investors to generate cheap electricity to develop the industrial sector of the province.

He also hoped that the move would create jobs in the private sector.