To explore and develop the hydropower potential in the province, the Government of NWFP created the Small Hydel Development Organization (SHYDO) in 1986-87 which was later on converted to Sarhad Hydel Development Organization (SHYDO), an autonomous body under the SHYDO Act 1993.
An eight member Board of Directors under the chairmanship of the Governor Khyber Pukhtunkhawa governs SHYDO. Members include the Ministers for power and finance departments, the Additional Chief Secretary to Govt: of Khyber Pukhtunkhawa, Secretary Power, Secretary Finance, Secretary Law and Managing Director, SHYDO. The Organization head office is at Peshawar and field offices at Chitral, Dir, Swat and Kohistan.

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