Warsak Dam was completed under the Colombo Plan in two phases and financed by the Canadian Government. The first phase was completed in 1960 and consisted of the construction of the dam. Irrigation tunnels and installation of four power generating units, each of 40 MW capacity with 132 KV transmission system, were also completed in 1960. Two additional generating units of 41.48 MW capacity each were added in 1980-81 in the second phase.
The total installed capacity of the Warsak Dam Hydropower Project is 243 MW. In June 2012, the Pakistan Water and Power Development Authority (WAPDA) decided to add a 375 MW powerhouse to Warsak, which will raise Warsak's total power generation capacity to 525 MW. No date was given on when the project would be complete.