Article by: Mr. Waleed Bin Mushtaq Mughal
As the Sukki Kinari Hydropower Project, a pivotal power generation initiative in Pakistan, commences its operations, the local community of Balakot has put forth a notable demand for the provision of free electricity to Tehsil Balakot as recompense for hosting this substantial project. The Sukki Kinari Hydropower Project is a cornerstone of Pakistan’s strategy to expand its renewable energy capacity.With an installed capacity of 884 MW, it stands as one of the largest privately sponsored run-of-river hydropower schemes in the country. Situated on the Kunhar River in Tehsil Balakot, within the Mansehra district of Khyber Pakhtunkhwa, this project is poised to generate up to 3.212 billion kWh of electricity annually, potentially providing affordable, clean power to over 1 million households across Pakistan. Considering the project’s magnitude and its ramifications for the region, residents of Balakot, local leaders, and various community organizations have united in calling for the Development of social upliftment programs and Corporate Social Responsibility (CSR) initiatives by SK-Hydro to benefit the local area. Foremost among their demands is the provision of free electricity to the communities within Tehsil Balakot, seen as a fair compensation for the disruptions and changes brought about by the construction and operation of the hydropower plant. Although the project has announced some CSR initiatives, including educational scholarships for students from areas near the dam site, the local community argues that additional compensation is warranted. This demand is underscored by the historical context of Tehsil Balakot, which remains deprived of promised rehabilitation and reconstruction programs following the devastating earthquake of 2005. The City of Hope Residential Project, schools, hospitals, connecting roads, and bridges, collapsed in the aftermath of the earthquake, and many other essential projects are still awaiting crucial development and completion since 2005. Given the prolonged neglect and the community’s existing hardships, the demand for free electricity is seen as a reasonable and necessary measure to improve local socio-economic conditions.The call for compensation echoes precedents set by other major hydropower projects, where local communities given similar benefits and packages. Historically, communities near the Tarbela and Mangla Dams have been provided with compensation packages. While no national law in Pakistan explicitly mandates such benefits, they are often negotiated as part of broader rehabilitation and resettlement agreements. Large infrastructure projects typically include compensation measures for affected local communities. Although not uniformly legislated, these measures are generally governed by specific agreements between project developers and local authorities. For the Sukki Kinari Project, the legal framework for compensation and social upliftment may draw from policies related to land acquisition and acquisition and resettlement, like those applied in other large-scale projects. While there is no law that directly guarantees free electricity, it remains within the realm of possibility for the government and project developers to negotiate such provisions as part of CSR initiatives or localized compensation agreements. Given the project’s significant scale and impact, exploring options for providing free or subsidized electricity to the local community could form a part of a comprehensive social upliftment strategy. This strategy might also encompass infrastructural development, educational programs, and employment opportunities for Balakot’s residents. The demand for free electricity by the local community of Balakot is well-founded and draws on examples from other hydropower projects in Pakistan. Incorporating such social benefits into the Sukki Kinari Project’s operational framework would not only acknowledge the local community’s role but also set a precedent for future infrastructure projects, ensuring that they contribute to the well-being of the regions hosting them. Such measures would represent a significant step toward implementing effective social upliftment programs across other infrastructure projects, particularly in historically underserved areas of the Country.
