ISLAMABAD: In a letter dated September 29, 2026 the Khyber Pakhtunkhwa (KP) government approached the Council of Common Interests (CCI) to resolve a constitutional dispute with the federal government over the exclusion of four Swat River hydropower projects from the Indicative Generation Capacity Expansion Plan (IGCEP) 2025–35, arguing that the decision violates provincial autonomy and disregards an earlier CCI-approved framework.
In a summary prepared for the CCI, the provincial government has sought restoration of the projects in the national generation plan, reconsideration of the criteria and assumptions approved by the CCI in 2021, and resolution of the dispute under Article 157(3) of the Constitution.
The Inter-Provincial Coordination Department of the Khyber Pakhtunkhwa government, through the letter, sought comments from the Power Division and the chief secretaries of Punjab, Sindh and Balochistan on the draft summary within two weeks under the relevant provisions of the CCI Rules of Procedure, 2010.
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According to the summary initiated by the provincial Energy and Power Department, the dispute concerns the exclusion of four Swat River hydropower projects from IGCEP 2025–35 despite their inclusion in the earlier IGCEP 2021–31 under the directions of the CCI.
The four projects comprise PEDO’s Madyan Hydropower Project, with a capacity of 207 MW, and Gabral-Kalam Hydropower Project, with a capacity of 94.96 MW, as well as the Kalam-Asrit Hydropower Project, with a capacity of 238.2 MW, and Asrit-Kedam Hydropower Project, with a capacity of 229.4 MW.
The combined capacity of the four projects is approximately 769.56 MW.
The provincial government maintained that the projects were included in IGCEP 2021–31 pursuant to the decisions of the 48th CCI meeting held on November 6, 2021. Under those decisions, provincial public-sector projects having approved PC-Is and financing arrangements as of March 2021 were to be treated as committed projects.
The CCI had also approved the assumptions and criteria for preparation of IGCEP 2021–31 and subsequent plans.
Relying on the earlier approvals, the Khyber Pakhtunkhwa government stated it proceeded with the development and financing of the projects, along with the necessary transmission and evacuation infrastructure through national and provincial grid companies.
However, the province alleged that the subsequent IGCEP 2025–35 excluded the projects without consultation with the provincial government and in contravention of the criteria and assumptions approved by the CCI in 2021.
The provincial government argued that the exclusion is unfair and unconstitutional, particularly in view of the provisions of the National Electricity Policy 2021, which envisages consultations between the federal and provincial governments on the parameters, basis and assumptions used in developing the national generation framework.
The policy, as cited in the provincial summary, seeks to ensure least-cost power generation so that consumers receive the cheapest available electricity while maintaining reasonable tariffs across different fuels and technologies.
Khyber Pakhtunkhwa contended that the exclusion of its hydropower projects without the required consultation undermines the agreed planning framework and adversely affects provincial interests.
The summary also invoked Article 157(2) of the Constitution, which provides powers to provincial governments concerning electricity, including the construction of powerhouses and grid stations, laying transmission lines for use within a province and determining tariffs for electricity distribution within the province, subject to the constitutional provisions.
The provincial government therefore invoked Article 157(3), which provides a mechanism for resolving disputes between the federal and provincial governments concerning electricity-related matters through the CCI.
In its proposed recommendations, the Khyber Pakhtunkhwa government requested the CCI to resolve the dispute arising from the exclusion of the Swat River hydropower projects from the national generation plan.
It has also sought reaffirmation or revalidation of the criteria and assumptions approved by the CCI in 2021 for the preparation of IGCEPs, with any modifications or amendments considered necessary by the council.
Most importantly, the province requested the CCI to direct the restoration of the four Swat River hydropower projects in IGCEP 2025–35 and subsequent plans.
The matter is expected to bring the federal and provincial governments into discussions over the treatment of provincial hydropower projects in national generation planning, the application of previously approved criteria and the extent of consultation required before changes are made to the generation expansion framework.
The draft summary was submitted by the Khyber Pakhtunkhwa government for consideration by the CCI, with the province seeking a formal resolution of the dispute and restoration of the projects in the national electricity planning framework.
Copyright Business Recorder, 2026