The United Nation's Global Environment Facility (GEF) has signed a project document with Pakistan's Alternative Energy Development Board (AEDB) and Economic Affairs Division (EAD) for the implementation of a $US19.2 million plan to set up mini-hydel power plants in district Chitral, Pakistan.

Under the project, 103 micro/mini-hydro power plants (MHPs) will be installed with a total capacity of 15 MW.

GEF support will play a vital role in strengthening local capacity to manage and operate MHPs; creating sustainable business models for MHPs notably by setting an appropriate tariff structure that covers operation and management expenses; training community members to run cottage industries and other productive uses; helping to set up a local entity at the district level to promote and manage off-grid electricity options; and developing and proposing regulatory and policy instruments to promote decentralized energy options.

Together, these measures will help to create an enabling environment that will ensure investments in micro mini-hydropower in northern Pakistan.

A project Steering Committee (PSC) comprising the UNDP, AEDB, GTZ, and Pakistan's Ministry of Environment, Ministry of Irrigation, and Ministry of Water and Power, will be established to supervise project implementation and provide guidance.