The dam has enlarged the size of Satpara Lake, generates 17.36 MW of hydroelectricity, supplies power to approximately 30,000 households in the Skardu Valley, irrigates 15,536 acres (62.87 km2) of land and supplies 3.1 million gallons per day of drinking water to Skardu city.[1] Annual agricultural output in the Skardu Valley is expected to increase more than four-fold, generating about $6 million in additional annual economic benefits to local communities.[2]
Construction of Satpara Dam commenced in April 2003 and completion was scheduled in November 2011. Power House Unit No. 1 came online on 6 October 2007 and Unit No. 2 on 30 December 2008. On 7 January 2011, the Government of Pakistan and the United States Agency for International Development (USAID) entered into an Enhanced Partnership Agreement under which USAID agreed to provide US$26 million for the construction of Power House Units Nos. 3 and 4 and completion of the remaining works on the dam.[1] Power House Unit No. 3 started commercial operation in May 2013 and Unit No. 4 in June 2013.[1]