Malakand-III Hydropower Project was identified after the construction of Auxiliary Tunnel under Swabi SCARP on the Upper Swat Canal System. The Upper Swat Canal System was completed in 1918. It emanates from the Swat River at Amandara Head Works and irrigates 121,400 hectares of land of the Peshawar valley.
A 6 km long canal carries water from Amandara to the foot of Malakand hills. There, the 3.5 km long Benton Tunnel pierces the Malakand hills and passes water into the Dargai Nullah. Utilizing this water, two power plants Jabban and Dargai, each of 20 MW capacity, were set up in 1937 and 1953 respectively each between the outlet of Benton tunnel and the tri-furcator.
