ATL has undertaken the construction of hydropower projects on EPC basis as well. In collaboration with Chinese partners in 2004, ATL successfully completed the development and construction of 81 MW Malakand III Hydropower Project in Malakand division of Khyber Pakhtunkhwa under SHYDO (now PHYDO).

The power station has been in safe operation since 2008, supplying clean and green energy each year to the national grid.