In recent times the energy requirements of Pakistan have been growing at the rate of 3-4 times of the annual rate of population growth. Consequently, the country is now facing one of the worst power shortages in its history. Further, the utilization of scarce fossil fuel resources of oil and natural gas for power generation and large imports of oil are adversely affecting the national balance of payments. Progressively increasing shortage of indigenous natural gas has necessitated the increased use of furnace oil, prices of which are tied with the oil prices in international markets.
The Project is located about 7 km upstream of the Dasu Bridge near Dasu town, in Upper Kohistan District of Khyber Pakhtunkhwa (KPK) Province. It is a run of the river hydroelectric power project to be constructed on the Indus River by Water and Power Development Authority (WAPDA) under the Ministry of Water and Power, Government of Pakistan. The Project area is in a mountainous region and is accessible from Islamabad by Motorway/G.T Road and Karakorum Highway (KKH) via Abbottabad. The District is divided by the Indus River into Right bank or Swat Kohistan and Left bank or Hazara Kohistan. Both Kohistans have their own history, cultures and languages. Further, the District is socially and spatially divided into different tribes and valleys. The villages and hamlets to be affected by the Project are located on both banks of the Indus River.