Short Term Capacity Addition Initiative

In order to remove the deficit of around 5,000 MW, the ECC has approved the Short Tem Capacity Addition Initiative under which technically and financially sound business parties are being invited for establishment of IPPs on Build, Own and Operate (BOO) basis within the jurisdiction of PEPCO / National Transmission Despatch Company (NTDC). Under this initiative, the interested parties are free to offer one or multiple Projects of any capacity (above 50 MW) based on any technology and fuel in consultation with the Power Purchaser / PPIB. Salient features of the initiative are given below:


  1. Submission of proposal and registration with PPIB on following basis:
  • Mode:                                   BOO basis
  • Capacity (MW):                    Any (above 50MW)
  • Technology:                        Any
  • Fuel:                                     Any
  • Configuration:                     Any
  • Location/Site:                     Within jurisdiction of NTDC / PEPCO (in

consultation with power purchaser)

  • Fuel Responsibility:           Project Company (IPP)
  • Debt Equity Ratio:            80:20 (min.) 70:30 (max.)
  • Term of the Project:         25-30 years
  1. Evaluation of technical and Financial strength of the Project Company by PPIB
  2. Approval by PPIB Board
  3. Issuance of LOI upon submission of PG @ US$1000/ MW
  4. Tariff Determination and issuance of Generation License by NEPRA
  5. Issuance of LOS by PPIB upon submission of PG @ US$5000 / MW
  6. Financial Close
  7. Commercial Operations

 In order to tackle the prevailing energy crisis through generation of affordable electricity, the Prime Minister of Pakistan on 26th July 2013 accorded approval to the concept of 6,600 MW Pakistan Power Park at Gadani, Balochistan.


            The key features of Pakistan Power Park include:


(i)        A dedicated deep sea jetty for import of coal.


(ii)       Power plants with cumulative capacity of upto 6,600 MW.


(iii)      In order to economize the costs, the power projects shall share the infrastructure facilities including switch yard, coal storage, ash pond, cooling water channel / arrangement, transmission, staff colonies etc.


(iv)        The Government of Pakistan (GoP) has incorporated on 6th August 2013 a special purpose company with the name of Pakistan Power Park Management Company Limited (PPPMCL) under the Companies Ordinance 1984 with the object and purpose to own, develop, maintain and operate infrastructure for the power projects in Pakistan Power Park.


(v)      Land for Pakistan Power Park shall be acquired by the Government of Baluchistan (GoB), transferred and vested in PPPMCL in consideration of equity / issuance of shares to GoB by PPPMCL.


(vi)      Infrastructure facilities and Common Facilities provided by PPPMCL to the IPPs shall be charged; modalities of which are to be worked out in consultation with Ministry of Finance and NEPRA.


In order to explore the options for developing co-generation projects on fast-track basis to ensure generation of inexpensive and affordable electricity, PPIB recently convened several meetings with all key stakeholders including Pakistan Sugar Mills Association (PSMA).


During the meetings, the representatives of PSMA reiterated that a new Policy for Co-Generation projects based on bagasse / biomass and coal as fuel should be announced by Government of Pakistan as there is large potential of power generation for supply to the power system throughout the year if use of coal is allowed for co-generation by sugar mills.


After detailed consultative process with all key stakeholders including Ministry of Industries & Production, Ministry of Petroleum & Natural Resources, Finance Division, Law and Justice Division, NEPRA, NTDC and PPIB, draft 'National Policy of Power Co-Generation (Bagasse / Biomass and Coal) for Sugar Industry 2013' was formulated and submitted to Ministry of Water and Power for approval.


Ministry of Water and Power is in the process of approval of the ECC for 'National Policy of Power Co-Generation (Bagasse / Biomass and Coal) for Sugar Industry 2013'.

Policy for framework for private sector Transmission Line projects, 2015

The large scale capacity additions in the electrical generation system are planned in the next few years which will necessitate corresponding augmentation in the transmission network. Due to the encouraging response of the private sector for investment in power generation and the constraints on public sector resources, the Government of Pakistan (GOP) has decided to solicit proposals from the private sector for investment in the field of both AC and DC Extra High Voltage (EHV) Power Transmission Lines, substations, and Converter Stations.


In this regard, Government of Pakistan has announced the "Policy Framework for Private Sector Transmission Line Projects, 2015" to facilitate investors; interested to undertake such transmission line projects in the country.



The Mahl Hydropower Project is a Raw site run of the river scheme identified to be located on Jhelum River at dual boundary of Punjab and AJ&K (the "Project"). Salient features of the Project are as follows:

            Gross Head                          59 m                                                  

            Design Discharge                1200 m3/sec

            Installed Capacity                 590 MW (approx.)    

            Plant Factor                          55 %                                                 

            Mean Annual Energy            3668 GWh (estimated)

            Estimated Project Cost         900 Million US$                  

In response, proposals received from national and international entrepreneurs have been evaluated by the Committee constituted by the Board to oversee development process of the Project. The Committee has submitted Evaluation report for consideration of the Board.

Subsequent to approval of the Board, Letter of Interest (LOI) has been issued to the highest ranked evaluated party (i.e CWE Investment Corporation - a subsidiary of China Three Gorges Corporation) on 21st October 2014.  The sponsor through its consulting firm is carrying out feasibility study of the Project.


Kotli Hydropower Project is a run of the river scheme located on river Poonch, district Kotli  AJ&K (the "Project") about 136 km from Islamabad. Salient features of the Project as per its feasibility study completed in year 2005 are as follows:

            Gross Head                          84.6 m                                                           

            Design Discharge                135 m3/sec

            Tunnel Length                       7.14 km

            Installed Capacity                 100 MW        

            Plant Factor                          54.2 %                                                          

            Mean Annual Energy           475 GWh

Subsequent to approval of the Board for development of the Project in private sector through ICB under GOP's Policy for Power Generation Projects 2002, expressions of interest, using two stage bidding process, have been invited from prospective investors through national & international print media on 2nd December 2013 with 28th February 2014 as the extended last date for submission of Proposals.

The received proposals will undergo evaluation process by the Committee constituted by the Board. The pre-qualified parties will be eligible for 2nd stage of the bidding process whereby firm cost as well as tariff will be obtained. The party offering lowest tariff will be awarded Letter of Support (LOS) for further development subject to approval of the competent forums.


Rajdhani Hydropower Project-132 MW (the "Project") is a run of the river scheme identified to be located on River Poonch upstream of Mangla Reservoir in district Kotli, AJ&K. The tentative salient features of the Project are as follows:



Project Name                        : Rajdhani Hydropower Project

Location                                 : 11km upstream Mangla Reservoir, District Kotli AJK

River                                       : Poonch



Capacity                                : 132 MW (estimated)

Energy                                   : 694GWh (estimated)

Project Type                          : Run of the River

Design Discharge                : 201m3/s

Gross Head                           : 79m

Plant Factor                           : 60% (expected)



Athmuqam Hydropower Project-350 MW (the "Project") is a run of the river scheme of River Neelum identified to be located in District Neelum, AJ&K. The tentative Salient features of the Project are as under: -

Project Name : Athmuqam Hydropower Project
River : Neelum
Location : District Neelum 
Distance : 84-100 km from Muzaffarabad
Capacity : 350 MW (Approx.)
Project Type : Run of the River
 Mean Annual River Flow : 250 m3/s (estimated)
Status : Raw Site



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