PESHAWAR: The Khyber Pakhtunkhwa government will borrow Rs7.2 billion to set up over 300 micro-hydel power stations in five central districts of the province.

The initiative is in addition to a similar programme under which around 356 such units are being established in 12 hilly districts of the province through some NGOs.

The scheme was reflected in the province`s Annual Development Programme (ADP) for 2016-17 with a token allocation of Rs1,000.

The energy and power department of ficials told Dawn that it was a flagship programme of the current ADP and those MHP stations wouldhave to be completed within remaining two years of the PTI government.

The official said the MHP stations would be built over canals and rivers in five central districts of the province, including Peshawar, Charsadda, Nowshera, Mardan, and Swabi.

Last month, Pakhtunkhwa Energy Development Organisation (Pedo) chief executive officer Akbar Ayub had hinted that the Asian Development Bank (ADB) would fund the project.

However, the official said the government would borrow the amount of money from the province-owned Bank of Khyber (BoK).

He said the loan`s terms and conditions hadn`t been finalised so far and that the government was in contact with the bank about it.

The official said the government would provide the money to individuals, who wanted to set up MHP stations in canal areas of the province.

He said preference would begiven to local people for provision of funding to set up MHP stations.

The official said the government would provide interest-free loans to general public for the purpose.

He said the people desirous of setting up MHP stations would have to apply to Pedo for approval for site, while for the loan, they had to file application with the BoK.

The official said the government would give preference to the funding applicants, who had potential sites suitable to set up micro-hydel power stations.

He said the bank would provide around 80 per cent of the funding, while the individual had to bear the rest of the estimated costs.

The official said such individuals could sell that power to the people in their localities.

He said a meeting called to review the flagship projects on Wednesday examined the scheme and ordered the completion of its PC-I in few days so that it could be presented before the Provincial Development Worl(ing Party for approval, whichwould pave the way for the start of work on the plants.

The official said 300-400 MHP stations once completed would generate around 60 megawatts electricity.

Another official pointed out that MHP stations faced sustainability issue as such stations in Chitral were destroyed during the last year`s floods.

He said such a scenario or in case of falling in disuse, a huge amount of money would be wasted on those projects.

Earlier last month, the KP government said of 356 MHP stations, feasibility studies of 284 were ready; 188 were in the pipeline; 53 had been completed and operational, andhvehadbeeninaugurated.

According to the energy and power department, these 356 MHP stations are likely to generate around 35MW power and will provide cheap electricity to over 350,000 households in 12 districts.

Pedo CEO Akbar Ayub was not available for comments.