ISLAMABAD - The Khyber Pakhtunkhwa government has claimed that the Balakot Hydropower, a provincial project, has 28 percent less tariff than China Pakistan Economic Corridor's (CPEC's) Suki Kinari HPP and 25 percent lower than Patrind HPP. Through better management, the cost of Balakot HPP has been reduced by almost half or $603 million, official of Pakhtunkhwa Energy Development Organization (PEDO) said while briefing a public hearing. The National Electric Power Regulatory Authority on Tuesday conducted a public hearing to determine the generation tariff for a proposed 300MW hydropower project in Balakot, district Mansehra, being pursued by the Pakhtunkhwa Energy Development Organization. The hearing, presided over by Chairman NEPRA Waseem Mukhtar, was further informed by PEDO official regarding the summary of savings, arguing the project's financing terms are better than SRO benchmarks. Filing Season Disruptions As per the documents presented, the BHPP will take 75 months to complete and is expected to produce 1,008 GWh of saleable energy annually at a 43.5% plant factor. The total project cost has been estimated at $612.56 million, equivalent to around Rs170.7 billion at an exchange rate of Rs278.57 per dollar. PEDO has proposed a levelized tariff of Rs 17.7103 per kWh, or 6.3576 US cents per kWh, over a 30-year control period on a "Take-or-Pay" basis with both capacity and energy components. The capital structure proposed is 89.79% debt and 10.21% equity. Debt servicing is based on 6-month SOFR + 0.75% for foreign loans and 6-month KIBOR + 3% for local loans, with a 20-year repayment period. Equity investors are seeking a 17% dollar-indexed return on equity. It was informed that through better financing terms $603 million will be saved during the lifetime of the project, which includes $280 million over project life on account of debt servicing, due to 0.75% spread versus 4.6% allowed under SRO, another $312 million on return on equity as equity is 10.2% versus 20% minimum allowed by NEPRA, while $11 million saved on financing fee on $550 million loan. South Asia's Youth PEDO claimed that due to savings, the proposed tariff of Balakot HPP levelized is 6.3576 US cents per kWh which is 25% cheaper than IPP mode 147MW Patrind HPP and 28% cheaper than CPEC umbrella project of Suki Kinari (884MW), which have tariffs of US Cents 8.35 per kWh and 8.85 per kWh respectively. About the financing structure, it was informed that the 89.8% funds for the project will come from foreign loan, while 10.2% equity will be funded by the provincial government. Debt carries a spread of 0.75% over SOFR/KIBOR with a 20-year repayment. Equity investors are seeking a 17% return on equity. Digital Smoking The tariff is split into capacity and energy components. For the first 20 years it is US cents 6.6449/kWh, dropping to US cents 2.6939/kWh for the last 10 years. In his written comments, industrialist Arif Bilwani questioned the very need for the project, citing surplus generation capacity in the system and the absence of its inclusion in the IGCEP 2025-35. He also objected to PEDO's claim for IPP-style incentives, including the 17% USD-denominated RoE, take-or-pay mechanism, and the transfer of commercial risks such as exchange rate and hydrology to consumers. Character Building Another invtervenor Rehan Javed pointed to inconsistencies in PEDO's technical and financial data, and sought clarifications on the debt-equity ratio, exchange rate assumptions, and compliance with NEPRA's benchmark tariff guidelines of 2018. Both experts urged NEPRA to ensure transparency in EPC procurement, project management consultancy, and grid interconnection approvals, and to ensure compliance with the Power Policy 2015.