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The Minister for Power Mr. Omar Ayub Khan presiding
124th meeting of PPIB
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15-Jul-2019 |
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Islamabad, 15th July 2019: The
Minister for Power Mr. Omar Ayub Khan while presiding the 124th meeting of
the Board of Private Power and Infrastructure Board (PPIB) congratulated and
appreciated the combined efforts of Power Division, PPIB and Government of
Sindh and expressed his pleasure on commissioning of Pakistan’s first ever
indigenous thar coal based 660 MW Engro Powegen Thar (Pvt) limited under the
early harvest component of CPEC framework and labelled it an historic
development towards realization of nation’s dream of utilizing indigenous
thar coal for power generation. The Minister further stated that all efforts
are being made by the present government to generate indigenous, reliable
and affordable electricity through different means. He explained that
Pakistan has enormous resources of coal and hydro which if utilized properly
for power generation, substantial amount of foreign exchange can be saved as
thar coal has potential of generating thousands of megawatts for decades to
come.
Detailed deliberations took place on
various agenda items presented before the Board by the Managing Director
PPIB Mr. Shah Jahan Mirza. Performance of various ongoing IPPs was also
evaluated and necessary way forward was guided to PPIB for further
processing. In order to facilitate the development of 700 MW Azad Pattan
Hydrpower Project, the Board agreed to grant extension in Financial Closing
deadline of the Project for resolving the pending issues. Targeted to be
completed by June 2026, Azad Pattan Hydropower Project is being built on
Jhelum River near Sudhnoti, AJ&K by M/s China Gezhouba Group Company. The
Board also granted extension in Financial Closing deadline of thar coal
based 330 MW Project by ThalNova Power Thar Pvt. Ltd which is amongst the
fleet of “Prioritized Projects” under China-Pakistan Economic Corridor
(CPEC) and committed to supply electricity to national grid by March 2021.
The Minister commented that the
efforts for improving the efficiency of this crucial sector are afoot and
GoP has so far bagged tremendous success. He further added that the GoP is
determined in developing a competitive energy
market in Pakistan that on one hand provides a fair return on investment,
while adequately protect the rights of consumers through a robust regulatory
regime on the other.
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PPIB INITIATIVE FOR
DEVELOPMENT OF SMALL HYDROPOWER PROJECTS
123rd meeting of PPIB
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06-May-2019 |
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Islamabad, 6th May 2019: In 123rd meeting
of the Board of Private Power and Infrastructure Board (PPIB) held today
under the chairmanship of Federal Minister for Power, Mr. Omar Ayub Khan,
the Board approved issuance of Tripartite Letter of Support (TLOS) to two
small hydropower projects (SHPPs) under the Power Generation Policy 2015
while the remaining SHPPs will be considered in the next Board meeting. The
approved projects include 7.08 MW Riali-II located at Ghori Wala Nullah,
Neelum Valley, Muzaffarabad and 8.00 MW Kathai-II located at Kathai Nullah,
Jhelum Valley, Hattian, AJ&K. This initiative will pave a way forward for
many other similar SHPPs and enhance confidence of investors in developing
small to medium size hydropower power projects in Provinces/AJ&K which will
further augment power generation based on indigenous and clean resources.
The Minister said that our end dream is to ensure
affordability in arranging future capacity additions for which hydro, solar,
wind and coal assets are particularly vital which are abundantly available
across country and enough to provide round-the-clock power supply for a long
time. The Minister further stated that previous government did not give
attention to the recovery of dues from power consumers and continued power
supply to high losses feeders while on the other hand, present government of
PTI is introducing reforms in power sector and indiscriminate action is
being taken again power theft as well as the defaulters and so far billions
of rupees have been recovered through this drive.
Managing Director PPIB Mr. Shah Jahan Mirza briefed the
meeting on various ongoing power generation projects being processed by
PPIB. The meeting was informed on various issues being encountered by
upcoming IPPs which require Board’s guidance/way forward so that said IPPs
are able to proceed swiftly. In order to facilitate the Sponsors in the
implementation of Thar coal based power generation projects, the Board after
detailed deliberations, agreed to allow six months extension in financial
closing date of 1,320 MW Thar Coal based Power Project being developed by
Thar Coal Block-1 Power Generation Company (Shanghai Electric Ltd.). The
Board further decided to encourage the Thar coal based power projects which
are crucial in meeting the future energy requirements of country and also
save millions of dollars of foreign exchange annually. In addition to this,
Thar coal based projects would generate economic activities as well as
employment opportunities for the people of the remote area of Thar which
entail improvement of the basic infrastructure of the area under Corporate
Social Responsibility. While considering bottlenecks in the development of
Thar coal based power projects, especially with regard to availability of
cooling water, the Board decided that every possible support from Government
of Pakistan would be extended to Government of Sindh for timely supply of
water to these projects so as their committed CODs may not be delayed and
also emphasized on Government of Sindh to expedite the completion of water
supply infrastructure on fast track basis. The Board also allowed extension
in financial closing of 1,263 MW RLNG based Power Generation Project near
Trimmu Barrage, District Jhang.
The Minister said that the Government of Pakistan
accords high importance to the China Pakistan Economic Corridor (CPEC) which
has given major relief to the power sector of Pakistan. He said that we are
committed to prioritize this initiative and in this regard, the investors
are being facilitated to meet various timelines including commercial
operation dates specified under the framework of CPEC.
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PPIB’s Efforts Bear Fruit – First IPP on Thar
Coal Realized Through PPIB
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19-MAR-2019 |
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Islamabad, 19th March 2019: Pakistan's first ever power
plant based on Thar coal starts generating electricity. The first unit of 2
x 330 MW Engro Powergen Project has been synchronized and started supplying
power to the national grid. This is the beginning of a new golden chapter in
the energy history of Pakistan as the Thar coal will provide energy
security, save billions of dollars of precious foreign exchange which is the
first step towards the self-reliance, generate thousands of jobs in one of
the most remote areas and provide model housing schemes and clean drinking
water to the Thar project under Corporate Social Responsibility (CSR)
program of various mining and power generation companies. Private Power and
Infrastructure Board (PPIB) under the Power Division has remained the main
driving force alongwith Government of Sindh, SECMC, Engro Group of Companies
and Chinese companies to achieve this historic milestone. This significant
feat marks a new era for energy security in Pakistan and the realization of
Thar dream.
The project is being implemented as "Prioritized
Project" under the China-Pakistan Economic Corridor (CPEC), a game changer
initiative for development of mega energy and infrastructure projects in the
country. The project is a joint venture between Engro Powergen Ltd, China
Machinery Engineering Corporation (CMEC), Habib Bank Ltd (HBL) & Liberty
Mills Limited, and is being developed at a cost of US$ 995.4 million private
investment. This is yet another example of efficient processing by PPIB that
the project has been able to successfully achieve synchronization with the
national grid today. Earlier the company started construction activities
after achieving Financial Close on 4th April 2016 and signing Security
Package Agreements.
The vision of relying indigenous thar coal reserves for
meeting energy needs has become a reality after decades of relentless
efforts put in by federal and provincial stakeholders while China-Pakistan
Economic Corridor further supplemented these efforts for making thar coal a
harbinger of prosperous Pakistan. Thar Coal Project will not only be the
game-changer in the energy sector of Pakistan, it will also be creating
ripples of prosperity on the local and regional level as well, transforming
lives of the Thari people. In addition to this, PPIB/GoP plans to induct
additional capacity of more than 4,000 MW in the system by mid of 2021 which
would be further enhanced to 24,000 MW by 2040 based on Thar coal.
PPIB vows to push boundaries and remains committed to
facilitate private investors in establishing more like projects for powering
Pakistan for a prosperous tomorrow. The project is amongst the fleet of
twenty six multi-fuel projects of around 14,500 MW being processed by PPIB
which is being targeted to be fully functional by June this year.
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PPIB DECLARES FINANCIAL CLOSE OF 1.658 BILLION DOLLAR FIRST TRANSMISSION
LINE PROJECT IN PRIVATE SECTOR
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27-FEB-2019 |
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ISLAMABAD, 27th
February 2019: First ever HVDC Transmission Line Project of Pakistan, which
will be 878 kilometers long from Matiari to Lahore has achieved Financial
Close. This was announced today at a signing ceremony held at the Power
Division, graced by the Federal Minister Power Division Mr. Omar Ayub Khan.
The documents were signed by Mr. Shah Jahan Mirza, Managing Director, PPIB
and Mr. Wang Bo, Chief Executive Officer of the company, with senior
officers from PPIB and the Power Division present at the occasion.
This High Voltage Direct Current
(HVDC) transmission line project is being developed under the framework of
China-Pakistan Economic Corridor (CPEC) Agreement, and is another landmark
achievement, which has surfaced as a result of the efforts and facilitation
of Private Power and Infrastructure Board (PPIB), Power Division, NTDC and
other stakeholders. It is not only the first ever HVDC transmission line
project in Pakistan, but also the first private sector transmission lines
project facilitated by PPIB under the GoP's
Policy Framework for Private Sector Transmission Line Projects 2015
(Transmission Line Policy 2015).
China Electric Power Equipment &
Technology Co. Ltd, (CET) which is subsidiary of State Grid of Corporation
of China (SGCC) is the Main Sponsor of the Project, which is responsible for
execution of the Project through formation of a Special Purpose Company,
i.e. Pak Matiari-Lahore Transmission Company (Pvt.) Ltd. (PMLTC). Spread
over 878km, the capability of this transmission line will be 4000 MW at ±660
kV voltage. The Project is designed to have bi-pole HVDC technology, having
two converter stations, one each at the ends of Matiari (Interior Sindh) and
Lahore, three repeater stations and two grounding electrode stations.
PPIB issued Letter of Support (LOS)
for the Project to PMLTC on 4th August 2017 and National Electric Power
Regulatory Authority (NEPRA) granted Special Purpose Transmission License to
PMLTC for the Project on 18th February 2018.
The Project Agreements i.e.
Implementation Agreement (IA), Transmission Services Agreement (TSA), Land
Lease and Right of Way Agreement (LLA), Implementation Agreement and
Guarantee Direct Agreement (DIA), TSA Direct Agreement (TSADA) etc. have
already been signed by the respective entities. The Project entails an
investment of US$ 1.658 Billion. After fulfilling mandatory prerequisites
and completion of all financing arrangements, the Project has successfully
achieved Financial Close. The Project which is scheduled to achieve
Commercial Operations by March 2021, would be executed on
Build-Own-Operate-Transfer (BOOT) basis, and will be transferred to NTDC
after a term of 25 Years. This transmission facility will primarily be
utilized to transmit power generated from indigenous Thar coal based power
generation projects, thus enhancing the share of indigenous fuel based
generation and saving significant amount of foreign exchange.
With the medium and long terms plans
of power induction into the national grid, it is important that the power
transmission infrastructure is made available to transport the electricity
from the power generation facilities to the load centres. PPIB is playing
vital role in private sector resource mobilization for large power
generation and transmission infrastructure projects, and Matiari-Lahore HVDC
transmission project is one such example. It is anticipated that this
Project will further pave the way for implementation of future transmission
line projects through private sector.
In addition to
this HVDC project, PPIB is currently facilitating implementation of power
projects having cumulative capacity of 10,934 MW under CPEC Agreement, which
include various hydel and coal based projects.
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122nd meeting of PPIB
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19-FEB-2019 |
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Islamabad, 19th February 2019: Federal Minister for
Power Mr. Omar Ayub Khan said that the present government is working on
number of initiatives to generate indigenous, reliable and affordable
electricity through different means to meet ever-growing energy needs of the
country. While presiding the 122nd meeting of the Private Power and
Infrastructure Board, he stated that our country has plenty of indigenous
and natural resources, which if utilized astutely, affordable electricity
can be generated to bring sustainability in the system for many decades to
come.
Various agendas were presented before the Board seeking necessary guidance
and approvals by PPIB for smooth development of hydro and coal based power
generation projects. In this regard, the Board agreed to allow one year
extension in the Financial Close date of 1124 MW Kohala Hydropower Project
considering that it is the largest hydropower project and so far the single
largest investment in any IPP in Pakistan/AJ&K. Further, the project is also
a vital component of China-Pakistan Economic Corridor and has achieved
significant progress so far. The Board gave advice to Government of AJ&K and
PPIB to expeditiously resolve all pending issues of this project on priority
basis. The Board also considered proposal for processing of small hydropower
projects that have been issued Letter of Interest (LOI) by provinces/AJ&K/GB
and referred to PPIB for subsequent handling under Tripartite Letter of
Support (TLOS) regime as envisaged under Power Generation Policy 2015. In
this regard a uniform and transparent criteria was approved by the Board to
apply on all small HPPs of provinces/AJK cross the Board. The Board also
advised the NTDC and CPPAG for formulating proper planning for the purchase
of Power and Power evacuation from indigenous and cheep hydropower resources
and other renewables.
Various other projects being
processed by PPIB were discussed during the meeting. In order to facilitate
indigenous fuel based projects, the Board approved extension in the
Financial Close deadline of 330 MW Siddiqsons Energy Limited and 330 MW Thar
Energy Limited maintaining the Commercial Operations Date for these
projects. The addition of 660 MW of affordable and reliable electricity will
energise the national grid in true sense while it will also be instrumental
in further developing the thar coal for power generation, saving of millions
of dollars of foreign exchange annually, generate economic activities as
well as employment opportunities for the people of the remote area of Thar
and will also entail improvement of the basic infrastructure in the vicinity
of these projects under Corporate Social Responsibility.
The Minister said that present government is working on
economic revival of country for which electricity is the most important
sector. He in particular commemorated the recent visit of Saudi Crown Prince
Muhammad Bin Salman to Pakistan which paved the way of huge investment of
US$ 20 billion in Pakistan. He maintained that under the charismatic and
able leadership of Prime Minister Imran Khan, world’s renowned business
groups like ARAMCO and ACWA Power of Saudi Arabi are coming to invest in
Pakistan while many other top rated business groups are also lining up to
come to invest in Pakistan which will change the fate of Pakistan in coming
times.
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The present government is working seriously on
controlling theft and losses as well as re-hauling of transmission and
distribution system
121st meeting of PPIB
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11-DEC-2018 |
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Islamabad, 11th December 2018: The present government is
working seriously on controlling theft and losses as well as re-hauling of
transmission and distribution system of country to remove bottlenecks in the
supply of electricity to consumers. Sustainability in the system is only
possible by brining transparency in power system, induction of indigenous
and renewable energy and introduction of new technology in transmission and
distribution systems. This was stated by the Federal Minister for Power Mr.
Omar Ayub Khan while presiding over 121st meeting of Private Power and
Infrastructure Board (PPIB) held here today. He said we require a portfolio
of electricity supply resources, that can also be dynamically orchestrated
to deliver electricity where and when it’s needed at an affordable price.
Managing
Director PPIB Mr. Shah Jahan Mirza briefed the Board on implementation
status of the portfolio of power generation and transmission line projects
currently being processed by PPIB. In this regard, the Board gave necessary
approvals aiming to facilitate project sponsors for implementing their
projects in a smooth and speedy way. Keeping in view the importance of much
needed +660kV HVDC Matiari-Lahore Transmission Line Project which is
specifically designed to provide power evacuation for Thar coal based power
projects, the Board agreed to allow extension in Letter of Support for
achieving Financial Close considering the merits that it is the first HVDC
and first private sector project under CPEC which has achieved substantial
progress and such extension would not compromise the completion date of the
project which is March 2021. Similarly, another important project under CPEC
was deliberated in the meeting and as proposed by PPIB, the Board allowed
extension in Letter of Interest to 300 MW imported coal based power project
being established at Gwadar. This facilitation will enable sponsors to
obtain tariff from NEPRA and Letter of Support from PPIB leading to
Financial Close and construction start of the project which will supply much
needed electricity to Gwadar to promote business for newly developed port,
boost socio-economic activities and start the Special Economic Zones and
Export Processing Zones in the Gwadar area of Balochistan. These activities
will create employment opportunities and develop social facilities under
Corporate Social Responsibility.
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Federal Minister for Power Division,
Mr Omer Ayub Khan addressing the opening session of CONSULTATIVE WORKSHOP on
renewable energy policy jointly arranged by AEDB and PPIB in Islamabad |
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20-NOV-2018 |
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All new power generation projects should be based on indigenous
resources. This was stated by the Honourable Minister for Power Mr. Omar
Ayub Khan while chairing 120th Board meeting of Private
Power and Infrastructure Board (PPIB)
120th meeting of PPIB
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14-NOV-2018 |
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Islamabad, 14th November
2018: All new power generation projects should be
based on indigenous resources. This was stated by the Honourable Minister
for Power Mr. Omar Ayub Khan while chairing the 120th Board meeting of
Private Power and Infrastructure Board (PPIB) held today. The Honourable
Minister underscored that Pakistan is full of indigenous and natural
resources which can be utilized for generating adequate & affordable
electricity and for achieving sustainability in the system, we need to
arrange investments in transmission system and also in the power generation
by prioritizing indigenous resources. In order to provide affordable
electricity to the people of Pakistan, it is necessary that local resources
should be further exploited and all such projects which are already in
process should be facilitated and expedited, he added. In this regard, the
Board today approved extension in Letter of Interest of 350 MW Athmuqam
Hydropower Project which is located on River Neelum in Azad Jammu & Kashmir.
While appreciating PPIB’s efforts for
development of hydropower projects, the Board advised that new projects
should be initiated after demand-supply studies have been completed so that
there is no situation of deficit or excess generation capacity in the
country. The Board agreed that coordination between various government
departments must be improved for efficient and timely implementation of all
projects. The Secretary Power Division stressed the need of proper planning
and timely establishing of transmission and evacuation arrangements for
upcoming projects.
While acknowledging the role being
played by PPIB in implementation of Pakistan’s first private sector +660 kV
HVDC Matiari-Lahore Transmission Line Project, the Honourable Minister
advised NTDC to be proactive in acquisition of land for convertor stations
and other ancillaries required for the project.
The Honourable
Minister emphasized that the current government is committed to remove
inconsistencies in the system and fully focused on curbing electricity theft
and defaulters for which country wide drive has already been initiated. He
concluded that Pakistan would be guided by imperatives of transparency,
efficiency and win-win co-operation while seeking investments in the power
sector.
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The Honourable Minister for Power Mr. Omar
Ayub Khan
chaired 119th Board meeting of Private
Power and Infrastructure Board (PPIB)
119th meeting of PPIB
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31-OCT-2018 |
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Islamabad, 31st October 2018:
The Honourable Minister for Power Mr. Omar Ayub Khan today chaired 119th
Board meeting of Private Power and Infrastructure Board (PPIB), his first
meeting after assuming charge and took detailed briefing on PPIB. The
Managing Director PPIB Mr. Shah Jahan Mirza briefed the Minister that PPIB
has so far attracted US$ 16.7 billion investment through commissioning
thirty seven power generation projects of around 15,500 MW. It was also
explained that PPIB is currently processing the most diversified portfolio
of its history which comprises of twenty five projects of more than 14,000
MW. It was underscored that currently more than 50% of electricity is fed
into national grid by the private sector. The Minister appreciated PPIB's
role and performance and advised that in order to further streamline the
processes for facilitation of investors, the timelines of project processing
should be declared upfront to the investors and should be adhered to in
letter and spirit, all processes should be transparent, efficient and time
bound.
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PROMOTION CEREMONY FOR DEVELOPMENT OF
1124 MW KOHALA HYDROPOWER PROJECT |
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24-September-2018 |
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24th
September, 2018: The promotion ceremony for development of 1124 MW Kohala
Hydropower Project held today at a local hotel in Islamabad. The project is
located in north-east region of Pakistan, being developed on the Jhelum
River, which is a branch of the Indus River in AJ&K. Kohala Hydropower
Project has been listed as the "Actively
Promoted Project" under the China-Pakistan
Economic Corridor (CPEC) initiative. Senator Syed Shibli Faraz, Leader of
the House in the Senate was the Chief Guest of ceremony while Mr. Fan Xiaxia,
Executive Vice President of China Three Gorges (CTG), Mr. Wang Yu, Chairman,
China Three Gorges International (CTGI), Mr. Qin Guobin, Chief Executive
Officer of China Three Gorges South Asia Investment Limited (CSAIL), Mr.
Zhang Jun, Chief Executive Officer, Kohala Hydro Company (Private) Limited
(KHCL), Mr. Shah Jahan Mirza, Managing Director Private Power and
Infrastructure Board (PPIB) and other high ranking officials of Government
of Pakistan, Government of AJ&K, PPIB, CPPA-G, CTG, IFC, Silk Road Fund,
Export Import Bank of China attended the ceremony.
Speaking on the occasion, Senator
Syed Shibli Faraz said that the Kohala Hydropower Project being the largest
private sector hydropower project of Pakistan and AJ&K assumes unique
distinction and expressed that the Project will play crucial role in
stimulating local economy by generating affordable and clean energy
of more than 5,000 GWh per year as well as create enormous employment
opportunities in the adjacent areas. The Senator assured
full support of government in accomplishing various milestones for
development of 1124 MW Kohala Hydropower Project as well as other projects
of CTG Group in Pakistan and expressed his belief that with proven track
record of CTG/CSAIL, the Kohala project will be completed timely. He admired
the quality of work being done by the CTG in Pakistan as per International
Standards and appreciated the arrangements been made by the company for
today’s event.
Managing
Director PPIB in his speech, illustrated historic overview of Pakistan’s
power sector and highlighted role of private sector in its development. He
also outlined the achievements of PPIB in attracting & facilitating the
private investors and said that so far, thirty seven power generation
projects of around 15,500 MW have been commissioned through PPIB while
another twenty five projects of more than 14,000 MW and one Transmission
Line Project of 4000 MW load carrying capacity are at different stages of
development. MD PPIB explained that 1124 MW Kohala Hydropower Project is
amongst the portfolio of three hydropower projects being processed by PPIB
under the CPEC framework and also one of the three hydropower projects being
sponsored by China Three Gorges. He said that Letter of Support has already
been issued to the Project while Financial Closing is targeted to be
achieved by end of this year and Project is likely to be completed by end of
2025.
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RIVER CLOSURE CEREMONY OF 720 MW
KAROT HYDROPOWER PROJECT |
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22-September-2018 |
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22nd
September, 2018: The River Closure ceremony for 720 MW Karot Hydropower
Project held today at the site of Karot Project. The Project is located on
Jhelum River at about 55 km from load center of Islamabad / Rawalpindi near
Village Karot in District Rawalpindi, Punjab and being processed by Private
Power and Infrastructure Board (PPIB) under the China-Pakistan Economic
Corridor (CPEC) initiative. Honourable Federal Minister for Power Division,
Ministry of Energy, Mr. Omar Ayub Khan was the Chief Guest, while Mr. Shibli
Faraz, Leader of the House in the Senate, Excellency Mr. Yao Jing,
Ambassador of China to Pakistan, Mr. Fan Xiaxia, Executive Vice President of
China Three Gorges(CTG), Mr. Wang Yu, Chairman, China Three Gorges
International (CTGI) and other high ranking officials of Government of
Pakistan, Government of AJ&K, Government of Punjab, PPIB, CPPA-G, CTG, IFC,
Silk Road Fund, Export Import Bank of China attended the ceremony.
Speaking on the occasion, Federal
Minister Mr. Omar Ayub Khan conveyed his pleasure to the company on
achieving yet another important milestone of river closing and assured full
support of the government in further and timely development of 720 MW Karot
project as well as other projects of CTG Group in Pakistan. He expressed his
confidence that with proven track record of CTG/CSAIL the project will be
commissioned in a timely manner. While conveying that Pakistan has a
tremendous hydropower potential of more than 60,000 MW, he urged CTG Group
to participate in the development of even more hydro, wind and solar power
projects in Pakistan.
Mr. Shah Jahan Mirza, Managing
Director PPIB gave a brief history of how the inflows of private investments
started in the power sector of Pakistan, starting from the first IPP, the
1,292 MW Hub Power Project conceived in 1985 till date, where PPIB has
facilitated 15,468 MW of power generation, and has a current portfolio of
14,107 MW being processed. He said that keeping in view the present
requirements of the nation, priority is being given to hydro, whereas 231 MW
have been commissioned and 7,431 MW are in process. He said that 720 MW
Karot Hydropower Project is one of the three hydro power projects being
sponsored by China Three Gorges and the river closing is one of important
developments towards successful implementation of project.
The Chinese Ambassador congratulated
the company on achieving historic breakthrough of River Closure and
expressed that the Government of Peoples Republic of China has always fully
supported the Government of Pakistan in its endeavours to bring prosperity
to the people of Pakistan through development of projects in multiple
avenues and through working together and cooperation in international arena.
Executive Vice President CTG Mr. Fan Xiaxia informed the participants that
it is a great blessing that the River Closure Activity has been successfully
achieved in a timely manner. He complemented the hard work done by the Karot
Project Team in undertaking various construction activities in a planned and
coordinated manner with active support of various departments and entities
of the GoP, GoAJ&K and Government of Punjab. Mr. Wang Yu, Chairman CTGI
addressing to the gathering conveyed that in order to achieve the goals, we
must always remain sober-minded, constantly build up our capacity and
improve the development ability. Meanwhile, we should also constantly pursue
innovation and never stop the pace of making progress.
In a bid to
Support the policy of the new government for making Pakistan clean, green
and pollution free, the dignitaries of ceremony initiated the tree
plantation drive at the project site through plantation of three trees. All
the dignitaries and participants, while witnessing the successful River
Closure Activity, highly admired the quality of work being done by the
company in Pakistan as per International Standards and appreciated the
arrangements been made by the company for the event.
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Minister for use of indigenous resources to produce cheaper electricity
118th meeting of PPIB
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23-JUL-2018 |
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Islamabad, 23rd July 2018: Federal Minister for Power
Division, Barrister Ali Zafar advised PPIB to further exploit the indigenous
resources and reduce dependence on imported fuels for power generation to
save huge foreign exchange against fuel imports and to bring the
affordability and sustainability in electricity supplies. He said that
affordable and reliable electricity plays an important role in
socio-economics development of any country. He made these remarks while
presiding over 118th board meeting of Private Power and Infrastructure Board
(PPIB) held here today.
The meeting reviewed the progress of the under process
power projects being handled by PPIB and expressed satisfaction on the pace
of work to achieve the commercial operations within given timeline. The
board advised PPIB to facilitate the investors and complete the projects
within specified time frame to meet the future energy requirements in the
country.
Earlier Managing Director PPIB, Shah Jahan. Mirza
briefed the meeting on over all PPIB's portfolio and said that PPIB is
focusing on addition of affordable electricity and prioritizing indigenous
resources like thar coal and hydro for power generation. In this regard,
PPIB is in process to shortly advertise two to three raw-site hydro
projects. The projects will be awarded through International Competitive
Bidding (ICB) on Built Own Operate and Transfer (BOOT) basis under
applicable power policy. The meeting was also apprised that seven Thar coal
based power projects with cumulative capacity of 4950 MW are different
stages of development. Furthermore coal will also be available for new
power projects from existing mine lease holders. Thar coal holds vital
importance for generating thousands of megawatts of affordable electricity
for decades to come. The development of Thar coal will also play a major
role in socio-economic development of the remorte areas of Sindh Province
and will help in achieving energy security and sustainable goals. Giving
detail of power projects being processed by PPIB, he informed that current
target of PPIB is to complete nine projects of 8200 MW by end of current
year while 14000 MW by 2021 out of which six power projects of 6421 MW have
already been commission and have been supplying reliable electricity to the
national grid.
Managing Director briefed that so far PPIB has attracted
leading international investors and lenders in country's power sector and
currently administrating thirty six (37) commissioned IPPs with a cumulative
capacity of 15,469 MW worth around billion dollars, which is an
accomplishment that makes PPIB stand out in the country’s power sector. He
further added that PPIB is also acting as Front Line Institution of
Government in Implementing Flagship CPEC Program by Processing Major Chunk
of Power Sector's projects under the auspices of CPEC. PPIB's Current
Portfolio includes Twelve Power Projects under CPEC Regime of 10,934 and one
HVDC transmission line projects, the first ever HVDC and private sector
transmission line project in history of country. Out of this CPEC portfolio,
two imported coal based power projects of total 2,640 MW have already been
commissioned whereas other projects are at different stages of
implementation.
The Minister appreciated the performance of PPIB and
advised to continue efficiently and expedite initiation of new projects.
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660MW THAR COAL BASED IPP ACHIEVES FINANCIAL CLOSING
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25-JUN-2018 |
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Islamabad, 25th June 2018: 660 MW Lucky
Electric Coal Power Project based on Thar Coal has achieved Financial
Closing today, signing of which was witnessed by the caretaker Minister for
Power, Ministry of Energy, Syed Ali Zafar, with other senior officials of
Power Division, PPIB and the company.
The Financial Closing documents for the 660 MW power
project were formally signed by Mr. Shah Jahan Mirza, Managing Director PPIB
and Mr. I. H. Haqqi, Chief Executive Officer of M/s Lucky Electric Coal
Power Project. The project will be located at Port Qasim near Karachi, and
based on local coal from Thar, an investment of US$ 1080.9 Million will be
made for implementation of the project. This project will be equipped with
the super critical technology and sea water will be utilized for cooling of
the plant. Lucky Power Project is being financed through Debt Equity ratio
of 75:25%, with the sponsors being M/s Lucky Cement Limited while the
lenders' consortium of the Project consists of Habib Bank Limited, United
Bank Limited, National Bank of Pakistan, Bank Alfalah Limited, Askari Bank
Limited Soneri Bank Limited, The Bank of Punjab, Meezan Bank Limited, Faysal
Bank Limited and Dubai Islamic Bank Limited.
Upon Financial Closing, PPIB will also issue Sovereign
Guarantee on behalf of the Government of Pakistan in favor of Project
Company to secure the payment obligations of Power Purchaser. The
achievement of Financial Closing will facilitate the project sponsors in
initiating construction activities at site which will be concluded by March
2021 and project will start generating electricity thereafter. The Sindh
Engro Coal Mining Company (SECMC) which is the lease holder for execution of
mining operations for coal extraction in the Thar coalfield, Block II will
supply coal to the Project while the electric power generated from the
Project will be sold to CPPAGL under a 30 years Power Purchase Agreement.
The Minister commented on the occasion that in order to
improve power supply in the country to make it more robust and reliable, and
reduce dependence on imported fuels, projects based on indigenous thar coal
assume further importance from energy security as well as economic
perspective and advised PPIB to further exploit the thar coal potential for
power generation. He also appreciated PPIB’s efforts of successful inducting
37 Power Projects totaling 15,500 MW capacity, and with an investment
portfolio of around US$ 17 billion, which are providing reliable electricity
to the national grid. PPIB with its proven track record has achieved yet
another major milestone with the Financial Closing of another thar coal
based IPP after 660 MW Engro Powergen. Thar coal reserves estimated at 175.5
billion tons hold vital importance for generating thousands of megawatts of
affordable electricity for decades to come. Previously not much attention
was given to harness the potential of indigenous resources in Pakistan
including the thar coal, however, now serious efforts are taking place in
this regard which is evident of the fact that PPIB has so far issued LOS to
the projects totaling more than 3,600 MW which are based on thar coal.
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The caretaker Minister for
Power Syed Ali Zafar visited
Private Power and Infrastructure Board
(PPIB)
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20-JUN-2018 |
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Islamabad, 20 June 2018,
The interim government is committed to ensure that the two months are not
wasted, rather processes to achieve self-reliance in electricity should be
initiated so that the coming government can easily take over from there.
Further the energy projects should be facilitated by PPIB in achieving
various milestones leading to their successful implementation. This was
stated by the caretaker Minister for Power Syed Ali Zafar on his visit to
the Private Power and Infrastructure Board (PPIB). The Honorable Minister
was briefed by the Managing Director PPIB Mr. Shah Jahan Mirza that due to
proactive approach of PPIB, power generation projects of 6,420 MW have been
added to the national grid during 2017-18 while another twenty four (24)
power generation projects of 14,000 MW which are based on HYDRO, RLNG and
COAL are under pipeline from which majority of projects are either under
construction or under Financial Closing.
The Minister was further briefed that PPIB is
encouraging addition of affordable electricity hence prioritizing hydro and
local coal resources for power generation while promoting imported coal
based power generation as a reliable base load solution. Currently PPIB is
implementing two robust policy frameworks namely Power Generation Policy
2015 and Policy Framework for Private Sector Transmission Line Projects 2015
which offer market competitive incentives and simplified procedures for
the investors. The Minister was informed that current target of PPIB is to
complete nine projects of 8,200 MW by 2018 while 14,000 MW by 2021 out of
which 6,420 MW have already been commissioned while six (6) projects of
4,395 MW are under construction, five (5) projects of 2,803 MW are under
Financial Closing stage and one (1) project of 300 MW is currently under
tariff determination stage.
In the detailed presentation given to the Honorable
Minister on PPIB's achievements and current activities, the Minister was
briefed that since its inception in 1994 PPIB has so far provided thirty
seven (37) power generation projects of 15,469 MW of around US$ 17 billion
FDI which are playing crucial role in fulfilling country’s electricity
demand. Renowned power sector players of the world participated and invested
billions of dollars in these projects. Initially PPIB was mandated to
implement power generation projects in the private sector, however,
appreciating IPPs model for implementation of projects and bringing
transparency and efficiency in the implementation and operation of private
sector projects, role of PPIB has been further expanded by allowing it to
facilitate public sector projects in IPP mode for which PPIB’s Act has been
amended in November 2015. Furthermore, in a bid to remove major bottleneck
in the development of power projects through provinces, particularly the
small hydro projects, PPIB has also been mandated to issue tripartite
Letters of Support for projects being processed by provinces to encourage
development of small to medium power projects based on local resources.
PPIB has also been
assigned important task to act as a frontrunner institution in
implementation of flagship China Pakistan Economic Corridor (CPEC)
initiative to process major chunk of energy projects. Under this task, PPIB
is implementing twelve (12) power generation projects of 10,934 MW and one
transmission line project from which two
projects of 2,640 MW have already been materialized. While briefing on the
CPEC, the MD PPIB stated that CPEC has been instrumental in achieving
historical breakthrough in the energy history of Pakistan whereby the
country's coal reserves at Thar are being developed having coal mining and
power generation projects of which 660 MW power generation and coal mining
project has already started construction at site. PPIB did not lag behind in
implementing transmission line project in the country which is quite
essential in interconnecting upcoming power plants which are located in the
southern parts of country. Accordingly, first time in Pakistan, PPIB has
been facilitating ±660 kV Matiari-Lahore HVDC Transmission Line Project
under the CPEC framework. This Project is not only first transmission line
project being developed by the private sector but it will also be first ever
HVDC transmission line in Pakistan.
The Honorable Minister expressed his satisfaction on the
performance of PPIB and advised to continue performing efficiently. He
advised PPIB to expedite initiation of transmission line projects and to
give suggestions to address the circular debt issue.
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OUTSTANDING CONTRIBUTION IN POWER GENERATION BY PPIB
117th meeting of PPIB
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25-MAY-2018 |
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Islamabad, 25th May,
2018: Federal Minister Power Division Mr. Awais Ahmad Khan Leghari while
chairing the 117th meeting of the Private Power and Infrastructure Board
(PPIB) held today remarked that the government has removed the darkness of
load shedding from the country by completing energy projects in a record
period of time and added that process of industrial development will be
accelerated and job opportunities will be enhanced due to overcoming of
energy crisis. He said that along with other stakeholders of the Power
Sector, PPIB has contributed addition of maximum megawatts to the national
grid. He said that just five years ago, energy, terrorism and violence were
Pakistan’s biggest challenges but our government has overcome these evils
within a brief term of five years and we can see that Pakistan is rising
towards becoming a strong economy.
Managing Director Private Power and
Infrastructure Board (PPIB) Mr. Shah Jahan Mirza briefed the Board on
overall performance of PPIB during the last five years in developing
Pakistan's power sector. The Board was briefed
that since June 2013, PPIB has managed to handle biggest and most
diversified portfolio of its history and delivered exceptional results.
Implementation of major portion of China-Pakistan Economic Corridor (CPEC)
energy program comprising coal, hydro and transmission line projects was the
prime task. PPIB as the leading institution of the GoP, processed these
projects diligently. The Board of PPIB has been extremely supportive, and
with the blessing of the government, during the past five years PPIB started
from scratch twenty-three projects with a cumulative capacity of 17,513 MW,
while twelve projects of 11,538 MW have started construction, and nine
projects accumulating to 6920 MW have achieved COD and supplying reliable
electricity to the national grid, bringing total number of IPPs commissioned
through PPIB to 15,469 MW. He added that from the current portfolio of
projects being processed by PPIB, we target to add another around 1800 MW to
the grid by end of this year.
In today's
meeting, various decisions were taken by the Board for smooth and effective
implementation of ongoing projects. The Board agreed extension in Commercial
Operation Dates (CODs) of 330 MW Thar Energy Ltd and 330 MW ThalNoa Thar
Power Limited both at Thar Block-II. The Minister indicated the need of
timely completion and synchronization of the transmission line project with
the upcoming generation projects in Karachi and Thar, as evacuation and
transmission of electricity from these plants heavily relies on the timely
completion of Matiari-Lahore Transmission Line project. Extension in LOI was
also accorded to 300 MW Coal Power Project at Gwadar..
In his
concluding remarks the Minister stated that during his tenure as Minister
Power Division, the teams at the Power Division, PPIB and other key players,
have worked relentlessly to achieve the goals of our government, and the
results are not hidden from anyone. He specifically lauded the efforts of
PPIB team for concluding such complex agreements and bringing project
proposals reality. He thanked all Board members for taking out their
precious times and providing very positive inputs and with their thoughts
processes and wisdom the targets of the government have been achieved. At
the end all Board members thanked Awais Laghari for his able guidance as
Chairman PPIB during his tenure, and highly appreciated the hard work put in
by PPIB teams to bring projects to reality.
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Mr. Shahjahan Mirza MD PPIB signing Implementation Agreement between
Power Division, Government of Pakistan and State Grid Corporation of China,
for 600 KV HVDC Line
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14 of May-2018 |
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ISLAMABAD, May 14 :Prime Minister Shahid Khaqan Abbasi
Monday witnessed signing of agreements between Power Division of Pakistan
and State Grid Corporation of China, for construction of 878 kilometer 600
KV HVDC Bipole Transmission Line from Matiari to Lahore.The signing ceremony
was held here at the PM House.
Project Implementation Agreement (IA) was signed by Mr.
Shahjahan Mirza MD PPIB and Shu Yinbiao, Chairman of State Grid Corporation
of China while Transmission Service Agreement, Land lease Agreement, O & M
Agreement was signed by Shu Yinbiao from the Chinese side and MD NTDC on
behalf of the Power Division.
Under the agreements, which are part of the Pakistan China Economic
Corridor, two Convertor Stations with AC Switching Stations at Matiari and
Lahore; two Electrode Stations at Matiari & Lahore each and three Repeater
Stations along the route of the line will also be constructed.
During the briefing about the agreements, the prime
minister was informed that with the launching of "China Pakistan Economic
Corridor" energy portfolio, planning for evacuation of power from the
upcoming power plants, including Thar, Port Qasim, nuclear and at Hub, was a
necessity.
Accordingly, HVDC Transmission Line was planned under CPEC for which
Cooperation Agreement was signed in 2015 between NTDC and State Grid
Corporation of China.
This flagship project is first of its kind in Pakistan
and also the first being executed under the Government of Pakistan
Transmission Policy-2015 on Build, Own, Operate and Transfer (BOOT) basis
for 25 years.
The project has a completion time of 27 months and
Commercial Operation Date (COD) has been fixed at March 1, 2021.
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Federal Minister for Power, Sardar Awais Ahmed Leghari Presiding over
116th meeting of PPIB
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09-MAY-2018 |
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Islamabad,
9th May, 2018: The Minister for Power Mr. Awais Ahmad Khan Leghari while
chairing the 116th meeting of the Private Power and Infrastructure Board
(PPIB) held today announced that 1230 MW RLNG based Power Project at Haveli
Bahadur Shah has started generating power which has world's
highest plant efficiency rate of 62.5% and is a great achievement of current
government made possible by the relentless efforts by the Power Division,
PPIB, NPPMCL and other kay players. The Minister expressed that
China-Pakistan Economic Corridor (CPEC) has greatly served Pakistan in
securing self-reliance in power sector while its full scale implementation
would deliver fruitful results in every nook and cranny of our country. He
said that after controlling blackouts we have come out of crisis mode and
now the prime focus remains on attaining energy security. Our end dream is
to ensure affordability in arranging future capacity additions for which
hydro, coal, solar and wind assets are particularly vital which are
abundantly available across country and enough to provide round-the-clock
power supply for a long time.
Progress of under implementation
power and transmission line projects which include CPEC and non-CPEC
projects was reviewed by the Board, while overall situation of the country’s
demand-supply also came under discussion. Managing Director PPIB Mr. Shah
Jahan Mirza briefed that PPIB has so far handled the CPEC energy program of
the GoP successfully and has already delivered success stories by declaring
CODs of 1320 MW Sahiwal and 1320 MW Port Qasim coal based power projects
while majority of projects are either under construction or under Financial
Closing stages. In today's meeting, particular
focus was on thar coal mining and power generation projects being setup in
the downtrodden Tharparkar which is emerging as energy capital of Pakistan,
courtesy the CPEC. In a bid to facilitate ongoing IPPs in
accomplishing various activities, the Board in today’s meeting granted
guidance and way forward leading to their smooth, quick and effective
implementation. The Board agreed to allow extensions in Financial Closing
Dates of 1320 MW Thar Coal based Power Project at Thar Block-I by Thar Coal
Block-I Power Generation Company Limited and 700 MW Azad Pattan Hydropower
Project at River Jhelum on the dual boundary of District Rawalpindi, Punjab
and District Sudhnoti, AJ&K. The Board also allowed provision of revolving
account facility for +-660 kV HVDC Matiari-Lahore
HVDC Transmission Line Project as was provided for power generation projects
under CPEC Agreement.
The Minister remarked that in 2013
every sector of Pakistan was in bad state but power sector was worst to all.
Considering the complexity of crisis and its serious ramifications, number
of measures were taken to ensure availability of electricity at affordable
cost to our industry, agriculture, commercial enterprises and domestic
consumers. The efforts of current government for transforming miseries of
nation into comfort have borne fruit and power generation projects are an
example of its own with regard to their advantages for the masses.
The meeting was
attended by Minister of State for Power Ch. Abid Sher Ali, Mr. Shoaib Ahmad
Siddiqui, Secretary Ministry of Planning, Development & Reform,
representatives of Power and Petroleum Divisions of Ministry of Energy,
Ministry of Finance, WAPDA, FBR, Punjab, Sindh, Khyber Pakhtunkhwa,
Balochistan provinces and FATA and AJ&K, a private sector member, besides,
Executive Director and Directors of PPIB and other senior government
officials.
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Managing Director, Shah Jahan Mirza addressing in The CPEC Summit 2018,
organized by Daily Dawn at Karachi
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23-24 of April-2018 |
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Federal Minister for Power, Sardar Awais Ahmed Leghari Presiding over
115th meeting of PPIB
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14-MAR-2018 |
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Islamabad,
14th March, 2018: Government of Pakistan realizes the importance of
transmission lines in complimenting the upcoming power generation projects.
Current transmission network needs to be strengthened and made reliable to
support government aim of achieving sustainability in the system. The
Minister for Power Mr. Awais Ahmed Khan Leghari expressed these views while
chairing the 115th meeting of the Private Power and Infrastructure Board
(PPIB) held here today. He emphasized that the GoP is working on upgrading
the existing transmission network to make it more reliable and efficient and
NTDC has been asked to take the necessary measures. At the same time private
sector is being encouraged to contribute in network expansion. As a result,
so far, Pakistan’s first ever HVDC Transmission Line project has already
been initiated in the private sector under China-Pakistan Economic Corridor
(CPEC) while several other projects are being planned to launch through
international competitive bidding.
The Managing Director PPIB Mr. Shah
Jahan Mirza briefed the Board on various projects being implemented by PPIB
under the CPEC. In today’s meeting, the Board approved extension in
Financial Close deadline of +660 kV HVDC Matiari-Lahore Transmission Line
being processed under the CPEC. The Board also allowed extension in
Financial Close deadlines of thar coal based power projects being processed
under CPEC which include 330 MW Project by Thar Energy Limited and 330 MW
Project by ThalNova Thar Pvt. Ltd. The Minister said that the current
government believes in the policy of facilitating investors, and extending
full support to them for processing and timely completion of their projects.
The Managing Director PPIB Mr. Shah
Jahan Mirza while briefing the Board on the performance of PPIB stated that
extensive efforts are being done to cultivate Thar coal and hydro potential
for power generation. Mr. Mirza briefed the Board that PPIB is successfully
meeting the challenging and ambitious timelines of the current government
for addition of huge quantum of power generation capacity in the national
grid which is evident of the fact that within a period of less than one
year, two projects of 1467 MW have started commercial operations while
another four projects of 5000 MW cumulative power capacity have achieved
partial commissioning as well.
The Minister remarked that
sustainability in power system is a must to do task of the GoP next to
balancing the demand-supply situation. Merely, providing additional
megawatts would not be sufficient to gain real goals. Pakistan’s future lies
in the indigenous and renewable energy for which serious efforts are being
put in. National Electricity Plan and a new Energy Policy are steps to
consolidate these efforts which will act as a guide for future capacity
expansions as well as choice of fuels etc.
The meeting was
attended by Minister of State for Power Ch. Abid Sher Ali, Mr. Yousaf Naseem
Khokhar, Secretary Ministry of Energy (Power Division), Mr. Arif Ahmed Khan,
Secretary Ministry of Finance, Mr. Shoaib Ahmad Siddiqui, Ministry of
Planning, Development & Reform, Lieutenant General Muzammil Hussain,
Chairman WAPDA representatives of Ministry of Energy (Petroleum Division),
Punjab, Sindh, Khyber Pakhtunkhwa, Balochistan provinces and AJ&K, a private
sector member, besides, Executives Director and Directors of PPIB and other
senior government officials.
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SECURITY PACKAGE
AGREEMENTS FOR
TWO 990 MW THAR COAL BASED POWER PROJECTS SIGNED |
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08-MAR-2018 |
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ISLAMABAD, 8th March 2018: The
Implementation Agreements (IAs) of two thar coal-based power generation
projects totalling 990 MW were signed today at Private Power and
Infrastructure Board (PPIB) for materializing the financing of 1490 Million
US$ as the cumulative Projects cost. Mr. Shah Jahan Mirza, Managing
Director PPIB signed the documents with Mr. Mohammad Asad, Project Director
of M/s Lucky Electric Coal Project and Mr. Muhammad Abdul Vakil, Chief
Operating Officer of M/s Siddiqsons Energy Coal Project. The signings were
witnessed by senior officers of PPIB and other high level officals
representing both projects. Ealier, the Power Purchase Agreements (PPAs) of
both the projects were executed on 7th March 2018.
The 660 MW Lucky Electric Coal
Project being developed by M/s Lucky Electric Power Company Limited at Port
Qasim has an investment of 1,080 million US Dollars whereas 330 MW
Siddiqsons Energy Coal Project by M/s Siddiqsons Energy Limited is located
at Thar Block-II having investment of 410 million US Dollars. Both projects
will utilize Thar Coal supplied by Sindh Engro Coal Mining Company (SECMC)
which is executing coal mining operations for coal extraction in the Thar coalfield,
Block-II. Letters of Support have already been issued to both projects by
PPIB which are currently at advanced stages of achieving Financial Closure.
It is anticipated that Lucky Electric Coal Project will start generation by
March 2021 while Siddiqsons Energy Coal Project by June 2021. Latest
advancements by both projects are very crucial in achieving future
milestones which include financial closing and start of construction
activities.
The addition of 990 MW of affordable
and reliable electricity will energise the national grid in true sense while
it will also be instrumental in saving of millions of dollars of precious
foreign exchange annually, generating economic activities as well as
employment opportunities for the people of Thar in particular and will also
entail improvement of the basic infrastructure in the vicinity of these
projects.
After overcoming the crisis of
electricity, GoP is prioritizing and encouraging power generation through
indigenous coal and hydro beside renewables resources for achieving energy
security. Exploration of Thar Coal is opening a new chapter in the energy
history of Pakistan and PPIB has been quite successful in implementing seven
thar coal based power projects of 5,000 MW which are at different stages of
development.
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COAL BASED PRIVATE POWER PROJECT OF
1320 MW ACHIEVES FINANCIAL CLOSURE |
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26-JAN-2018 |
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Islamabad, 26th January 2018: Financial Close of 1320 MW
power plant at Hub has been achieved by China Power Hub Generation Company
(Private) Limited. The company will establish 2 x 660 MW power plants at
Hub, Balochistan. The Implementation Agreement (IA) and Power Purchase
Agreement (PPA) of the project have been already signed on 25th January,
2017. The project is being implemented as "Prioritized Project" under the
China-Pakistan Economic Corridor (CPEC), a game changer initiative for
development of mega energy and infrastructure projects in the country.
The signing ceremony of Financial Closure was held at
Private Power Infrastructure Board (PPIB) office Islamabad on 26th January
2018 which was attended by Mr. Shah Jahan Mirza, Managing Director, PPIB and
Mr. Zhao Yonggang, Chief Executive of Project Company alongwith other senior
officers of PPIB and Project Company/Sponsors. The sponsors of the Project
are China Power International Holding and Hub Power Company Limited,
Pakistan while the equity partners of the project are China Power
International Holdings Limited and Hub Power Holdings Limited and the
lenders consortium consists of China Development Bank, The Export-Import
Bank of China, Industrial and Commercial Bank of China, China Construction
Bank Corporation and Bank of Communications Co. Limited.
This project is one of the largest projects of CPEC
which is being developed at a cost of US$ 2 billion and its first unit of
660 MW is targeted to start production by December 2018 while full
commercial operations are targeted to be commenced by August 2019. It is a
laudable fact that in order to ensure timely completion of Project, the
Sponsors had started construction activities through own equity prior to
achieving Financial Close. Due to the proactive approach of Project
Sponsors, and the support provided by the Power Division and PPIB,
construction activities are being undertaken at accelerated pace and so far
considerable progress has been achieved in this regard. The plant would have
least impact on environment as super critical technology is being employed
which is the latest technology being adopted world-wide to address
environmental concerns.
The Project will be instrumental in socio-economic
uplift of the remote areas of Hub/Lasbella besides generating employment
opportunities for the local population. Today's achievement added another
feat to the CPEC which has so far delivered 1320 MW Sahiwal and 1320 MW Port
Qasim Power Projects in the recent past. Role of China in developing
Pakistan's Power Sector particularly through CPEC is regarded with great
respect while Hubco group has noticeable stakes in the Pakistan's power
sector by owing 1292 MW, 220 MW IPPs, 84 MW hydro commissioned IPPs. Another
330 MW Thar Coal fired Power Project at Thar Block-II is also being
implemented by Hubco Group under the banner of CPEC which is currently under
construction and its Financial Close is expected soon.
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Federal Minister for Power, Sardar Awais Ahmed Leghari Presiding over
114th meeting of PPIB
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17-JAN-2018 |
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Islamabad,
17th January, 2018: The 114th meeting of the Board of PPIB was held today
under the Chairmanship of Federal Minister for Power Sardar Awais Ahmed Khan
Leghari; this being the fourth meeting in last three months. The Honourable
Minister while appreciating the Board members for their active participation
in the meetings said that investors in the power sector are feeling the
friendly environment as their cases are being fast tracked due to frequent
meetings.
Managing Director PPIB, Mr. Shah
Jahan Mirza briefed the Board on various agendas of today's meeting and
activities being undertaken by PPIB for timely implementation of power
generation projects under its portfolio. He briefed that in order to
encourage indigenous and sustainable energy, PPIB is handling seven projects
with a total capacity of 5,600 MW. In todays'
meeting, the Board authorized PPIB to acknowledge the ECC approved Interim
Agreement for supply of R-LNG to four indigenous gas based IPPs namely
Halmore, Saif, Orient and Sapphire. Due to non-availability of gas these
projects are operating on costly HSD. The replacement of R-LNG with HSD will
cut the fuel price to almost half, thus reducing the tariff considerably.
Managing Director NTDC made a
presentation on the analysis of Matiari-Lahore HVDC transmission line, the
flow of power from IPPs based on Thar Coal from south to north, and the
financial impact thereof. The Chairman advised PPIB, NTDC and CPPA-G to sit
down together and make a thorough analysis based on the actual Commercial
Operation dates of the Thar Coal based IPPs so that any financial exposure
to the government can be avoided.
The Board also granted approval to
go-ahead with the procedure of executing Coordination and Indemnity
Agreement between Government of Pakistan and Government of Sindh. Under the
said procedure, working draft of the Agreement will be circulated to the
Government of Sindh through Ministry of Energy (Power Division) and after it
is finalized between the parties, shall also be finally vetted by Ministry
of Law & Justice before execution. This is required for the projects based
in Sindh, where the Sindh Government signs Land Lease Agreement (LLA) and
Water Use Agreement (WUA) with the IPPs. GoP is covering default under these
Agreements in the Implementation Agreement. The Chairman advised to conclude
the agreement within one month
The Honourable Minister stated that
current Government has been instrumental in realising the electricity
potential as we believe that electricity plays vital role in improving
socio-economic growth of the country. We are committed to provide affordable
electricity in most efficient manner to every single consumer for which we
have taken concrete steps and will continue the spirit for future as well.
On the proposal
of the Federal Minister for Power Division, the PPIB Board decided to hold
its next meeting at Thar, Sindh in the second week of February 2018 in order
to review the indigenous coal assets of Pakistan. The Board members will
also take stock of the projects already under different phases at Thar. It
will also provide first-hand knowledge and facilitate the right decisions
relating to the Thar Coal Projects.
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Federal Minister for Power, Sardar Awais Ahmed Leghari Presiding over
113th meeting of PPIB
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11-JAN-2018 |
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Islamabad,
11th January, 2018: The National Electricity Plan and new Energy Policy of
the Government of Pakistan is at final stages of development and has full
participation of the provinces. This plan will be of utmost importance in
determining demand and supply scenario of electricity in the country. This
was said by the Federal Minister for Power Sardar Awais Ahmed Khan Leghari
while presiding over 113th meeting of Private Power and Infrastructure Board
held here today. He further said that all pending LOIs issued to sponsors
will accordingly be evaluated under this plan. The National Electricity Plan
would play a major role in determining the future sources for power
generation and reduced tariff which would be based on International
Competitive Bidding. The Minister further stated that the Sponsors of
Projects should diligently pursue their projects so that projects are
implemented well in time while practice of granting extensions in
accomplishing various milestones should be avoided so that the plan for
capacity addition is not disturbed. Ch. Abid Sher Ali, Minister of State
Power Division, amongst other senior federal and provincial government
officers attended the meeting.
In today's
meeting, the Board approved execution of Implementation Agreement (IA) with
the +660kV HVDC Matiari-Lahore Transmission Line Project, consequently
allowing PPIB to execute the agreement for timely implementation of this
project of national importance. The Board also allowed extension in
Financial Close date of 1320 MW Imported Coal based Power Project at Hub
without affecting the synchronization date of the first unit i.e. 31st
December 2018 and Required Commercial Operation Date i.e. 1st August 2019.
The Board accorded approval for
submission of ECC Summary for approval of IA and PPA for 1263 MW Trimmu RLNG
based Power Project which is being implemented on fast track basis by the
Government of Punjab.
The Minister and Board members
expressed their satisfaction on the progress of ongoing projects being
handled by PPIB and urged PPIB to keep abreast on the progress of said
projects. The Federal Minister said that there are other aspects of the
energy crisis which we are tackling on war footing, including constraints in
the transmission segment of the power sector,
inefficiencies in the distribution system, the circular debt burden and
inadequate checks on power theft.
Eradicating load shedding, harnessing indigenous potential, controlling
wrong meter-reading/over-billing and introducing net-metering are
extraordinary achievements of the government which will be instrumental in
making our electricity network efficient.
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Honourable Prime Minister Shahid
Khaqan Abbasi inaugurated 147 MW Patrind Hydropower Project at Muzaffarabad
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15-DEC-2017 |
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INAUGURATION OF FIRST UNIT OF 1320 MW
PORT QASIM COAL FIRED
POWER PROJECT
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29-NOV-2017 |
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Honourable
Prime Minister Shahid Khaqan Abbasi inaugurated the first unit (660 MW) of
1320 MW Port Qasim Coal-Fired Power Project on Wednesday i.e. 29th November
2017. The Project is a part of China-Pakistan Economic Corridor (CPEC) while
M/s POWERCHINA and AL-MIRQAB, Qatar are the sponsors of the Project.
The inauguration ceremony was held at
Karachi which was attended by Governor Sindh Mr. Mohammad Zubair, Chairman
POWERCHINA Mr. Yan Zhiyong, Chairman AL-MIRQAB Capital, Qatar Prince Jassim,
Minister for Power Division Sardar Awais Ahmad Khan Leghari, Minister for
Maritime Affairs Mir Hasil Khan Bizanjo, Minister of State for Power
Division Chaudhry Abid Sher Ali, Minister of State for Petroleum Division
Mr. Jam Kamal Khan, Chinese Ambassador to Pakistan H.E. Mr. Yao Jing,
Managing Director Private Power and Infrastructure Board (PPIB), Mr. Shah
Jahan Mirza beside other senior officials from Pakistan and China as well as
media personnel.
While addressing the gathering,
Honourable Prime Minister said that "today,
Pakistan has not only met its energy needs, it has also surplus power".
Congratulating POWERCHINA and AL-MIRQAB Capital, the premier said the
completion of the first unit of coal-fired power
project was a significant milestone in the CPEC, adding that the CPEC
creating job opportunities for the youth, alongwith boosting economic
prosperity. The 660 MW first unit of the Project has been completed in 30
months - ahead of schedule -
and the second unit will also be completed ahead of the schedule in February
2018-around two months ahead schedule, he assured.
The PM also mentioned various power projects, including coal-fired,
gas-fired and hydel-based power plants, which had added thousands of MWs to
the national grid over the last four years. The Premiere in his concluding
words, appreciated the untiring efforts of the Power Division of Ministry of
Energy, PPIB, NTDC, Government of Sindh and Port Qasim Authority for making
this project a reality.
Speaking on the occasion, Federal
Minister for Power Division Sardar Awais Ahmad Khan Leghari said the
Ministry would keep working to take on challenges like constraints
in Distribution of Power, Overbilling, Line losses and Transparency. He said
the Federal and Provincial governments would soon legislate for National
Electricity Plan who would penalise companies for inefficiency in
distribution and those involved in power theft would have to face
imprisonment up to three years. Ensuring transparency and streamlining
of billing system, he claimed that the Premier would inaugurate Net Metering
System soon.
The 1320 MW
Port Qasim Project was issued Letter of Interest by PPIB on 21st May 2014,
Letter of Support on 17th April 2015 while Financial Closing was achieved on
22nd December 2015. Ground breaking of the project was performed by the
former Prime Minister Muhammad Nawaz Sharif on 6th May 2014. Due to the
vigorous processing and follow up by the PPIB, first unit of the project has
been completed in less than 23 months after achieving the financial close.
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IMPLEMENTATION
AGREEMENT SIGNED FOR 330 MW THAL
NOVA
COAL POWER
PROJECT
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24-NOV-2017 |
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AGREEMENTS SIGNED FOR 330 MW THAR COAL POWER
PROJECT
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10-NOV-2017 |
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ISLAMABAD,
10th November 2017: The Implementation Agreement (IA) and Supplemental
Implementation Agreement (SIA) of 330 MW Thar Coal based Power Project by
M/s Hub Power Company Limited (HUBCO) signed today at Private Power and
Infrastructure Board for materializing the financing of around 500 Million
US$ as Project cost. The documents have been executed by Mr. Shah
Jahan Mirza, Managing Director PPIB and Ms. Fatima Maryam, Chief Financial
Officer of HUBCO. The officials from Government of Pakistan (GoP), Private
Power and Infrastructure Board (PPIB) and representatives of HUBCO and
Project Company i.e. M/s Thar Energy Limited (TEL) witnessed the signings.
This project is being developed at
Thar Block-II, and will utilize indigenous Thar Coal for power generation.
Letter of Support has been issued to the project by PPIB and currently it is
at advanced stages of achieving Financial Closure. In order to ensure timely
completion of Project, the Sponsors have started construction activities
prior to achieving Financial Close. The development pace on the project is
satisfactory, hence it is anticipated that the project is likely to start
generation by end 2020.
This project is among the lot of 12
coal and hydro power projects of around 11000 MW being facilitated by the
PPIB under the framework of China-Pakistan Economic Corridor (CPEC). A new +
660kV HVDC transmission line under CPEC is also being implemented by PPIB to
evacuate electricity from new power generation units in the south and to
transmit it to the load centres up north.
Mr. Shah Jahan Mirza, Managing
Director PPIB stated that this latest development reaffirms GoP's
commitment of making country self reliant in power generation and free of
load-shedding. He said the exploration of Thar Coal is opening a new chapter
in the energy history of Pakistan and this dream has been realized through
CPEC arrangement. CPEC is a real game changer in the field of energy because
the prioritization of energy projects as part of the CPEC investments have
enhanced the confidence of stakeholders in Pakistan's
energy sufficiency. CPEC is covering the entire power sector value chain
from fuel extraction (mining) to power generation and to end-user
distribution. The development of these projects will be instrumental in
generating economic activities as well as employment opportunities for the
people of the area in particular and will also entail improvement of the
basic infrastructure in the vicinity of these projects.
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Signing of Supplementary IA
Between PPIB and China Power Hub
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09-NOV-2017 |
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Federal Minister for Power Division, Sardar Awais
Ahmed Khan Leghari has said that the Government has initiated a third party
evaluation of the electricity demand and supply scenario
112th meeting of PPIB
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31-OCT-2017 |
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Islamabad,
31st October, 2017: Federal Minister for Power Division, Sardar Awais Ahmed
Khan Leghari has said that the Government has initiated a third party
evaluation of the electricity demand and supply scenario which is in the
final stage and the Power Division is expected to receive its first report
shortly. He said that based on the third party evaluation and other related
matters, the Government will streamline the approval of new power projects
in the country. The Minister conveyed this while chairing the 112th meeting
of the Board of Private Power and Infrastructure Board (PPIB) held here
today.
While settling multiple matters
regarding smooth implementation of power projects, the Board decided to
allow execution of Implementation Agreements and Supplemental to
Implementation Agreements with the Power Generation Projects based on Thar
Coal thus allowing PPIB to sign these agreements for smooth and earliest
implementation of their projects. These projects include 1320 MW Thar
Block-I Power Generation Co. (Shanghai Electric Power Co.), 330 MW Thar
Energy (HUBCO) Power Project, 330 MW Thal Nova Thar Power Project, 660 MW
Lucky Electric Power Co. and 330 MW Siddiqsons Energy Limited. The Minister
said that all efforts should be made to promote the local coal and any
action should not in any way affect or delay the pace of mining at Thar. He
said that any temporary arrangement to use imported coal should be well
monitored and the plant design should be based on Thar coal specifications
for use of indigenous coal.
Sardar Awais Ahmed Khan Leghari
emphasized the uniform policy should be adopted for issuance of Letter of
Intent (LOI) and Letter of Support (LOS) to the potential investors in the
power sector in order to ensure transparency. He said that any extensions in
Projects timelines should only be allowed in accordance with the applicable
policies.
Mr. Shah Jahan Mirza, Managing
Director PPIB briefed the Board on the power generation and transmission
line projects currently being handled by PPIB. The Minister said that PPIB
being the one window facilitator for private sector power projects, should
hold its Board meetings frequently in order to dispose off cases more
diligently. He conveyed that the Power Division is considering to switch
from present upfront tariff regime to competitive bidding regime to add most
affordable electricity for the consumers in the national grid.
Recommendations in this regard will be placed before the Government for its
consideration.
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Federal Minister for Power, Sardar Awais Ahmed Leghari Presiding over
111th meeting of PPIB
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25-OCT-2017 |
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Islamabad,
25th October, 2017: The present Government while taking prompt steps for
eliminating the electricity shortage has made a number of decisions and
executed many projects accordingly. These are now bearing fruits and the
country is about to enter into an era of abundance of electricity for public
and economy. However, we are cognizant of the fact that there are still
complex issues in the sector which require further work and diligence. The
Government is assessing the power sector issues in its entirety and will
soon come up with a comprehensive plan for future course of action. This was
said by the Federal Minister for Power Sardar Awais Ahmed Khan Leghari while
presiding over 111th meeting of Private Power and Infrastructure Board held
here today. He said that the Power Division is assessing and analyzing the
demand & supply scenarios and evaluating the ground situation to prepare
future course of action for power sector.
The Board was briefed that in order
to further ensure the elimination of load shedding and have some backup for
unforeseen outages, CCE has approved 1250 MW RLNG based power generation
project near Trimmu Barrage in District Jhang, Punjab. This project having
estimated cost of US$ 802 million was approved in today's
meeting for further processing. The project is targeted to start generating
power in simple cycle mode by December 2018.
The Board also decided to advertise
132 MW Rajdhani Hydropower Project on Poonch River in AJ&K under the
provisions of Power Policy 2015. Setting up of hydropower projects will
improve energy mix in the country and reduce dependence on imported fuels.
The establishment of this project will also be instrumental in generating
economic activities as well as creating employment opportunities for the
people of the area. The Board was informed the hydropower has been the top
priority of PPIB. Currently, 4 projects of approximately 1850 MW are under
construction while another 1124 MW Kohala Hydropower Project will achieve
Financial Close early next year.
In order to facilitate the Sponsors
in the implementation of their project the Board allowed extension in
signing of project agreements (IA and TSA) to Pak Matiari-Lahore
Transmission Company (Pvt) Limited which is developing first ever private
transmission line project of the country and will also be the first ever
HVDC transmission line in Pakistan i.e. +-660kV Matiari-Lahore Transmission
Project having designed capacity of transmitting electricity of 4000 MW. The
Project is being sponsored by China Electric Power Equipment & Tech. Co. Ltd
(CET) a subsidiary of State Grid Corporation of China (SGCC) under China
Pakistan Economic Corridor (CPEC) framework. This project is of great
national importance as it is aimed to evacuate electricity from upcoming
coal based power projects which are located in southern parts of country.
Managing Director Private Power and
Infrastructure Board (PPIB) Mr. Shah Jahan Mirza briefed the Board on
various power generation projects which include CPEC and non-CPEC projects
being handled by PPIB, while overall situation of the country's
demand-supply also came under discussion. Mr. Mirza briefed that currently
PPIB is handling portfolio of thirty two IPPs of more than 20500 MW which
are based on hydro, coal & RLNG fuels plus a +-660kV HVDC Matiari-Lahore
Transmission Line Project out of which twelve projects of around 11000 MW
and Transmission Line Project is being implemented by PPIB under the CPEC
framework. The Board was briefed that majority of these projects are at
advance stages of implementation, some are under the process
of declaring COD/testing
and commissioning, some are under construction, while others are under
Financial Closing and Pre-Financial Closing stages.
The Minister
and Board members expressed their satisfaction on the progress of ongoing
power generation & transmission projects being handled by PPIB and urged
PPIB to keep abreast on the progress of said projects which are of vital
importance in stimulating our economic growth by promoting allied businesses
in infrastructure development and creating employment opportunities. The
Federal Minister said that the present government has announced various
incentives through the power policy of 2015, and while lauding PPIB on its
efforts for attracting record investment in the power sector, he said that
the facilitation extended to the new investors in power sector should be
further enhanced to support local and international investors.
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Initialing Ceremony
IA - 1124MW Kohala HydroPower Project
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20-OCT-2017 |
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PPIB Signs Facilitation Agreement with Government of
Azad Jammu & Kashmir under Tripartite LOS Regime
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08-SEP-2017 |
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The
signing ceremony of Facilitation Agreement (FA) was held on 8th September
2017 at Private Power Infrastructure Board (PPIB) office Islamabad. The
documents were signed by Mr. Shah Jahan Mirza, Managing Director PPIB and
Malik Israr Ahmed, Secretary (Electricity/PDO) Government of Azad Jammu &
Kashmir (GoAJ&K) in presence of senior officials of PPIB and the GoAJ&K.
Under the Facilitation Agreement, PPIB and GoAJ&K have agreed for
cooperation and facilitation in setting up private hydropower power projects
of under 50 MW and related infrastructure initiated by GoAJ&K for further
processing by PPIB under the Tri-partite Letter of Support (LOS) regime.
Earlier, PPIB has already signed Facilitation Agreements with Energy
Department of Government of Khyber Pakhtunkhwa and Energy Department of
Government of Punjab.
Through
this arrangement, a Tripartite LOS will be issued to the projects
sponsors/companies and PPIB will facilitate them in establishing of private
power projects and related infrastructure through signing Implementation
Agreement and issuing Government of Pakistan (GOP) Guarantee under the
provisions of Power Generation Policy 2015. This initiative will attract and
encourage potential investors in developing small to medium size hydropower
power projects in AJ&K which will further augment generation capabilities.
This milestone will enhance the confidence of investors in investing in
Private Power Projects of GoAJ&K and help in harnessing the large potential
of hydropower projects in AJ&K.
PPIB is
already processing eleven medium to large size hydropower projects in AJ&K
with a cumulative capacity of 4739 MW out of which three projects of 969 MW
are under construction after achievement of Financial Close while two
projects of 1764 MW are expected to achieve Financial Closing soon and
others are at different stages and moving ahead satisfactorily. It is
pertinent to mention that the first hydro IPP namely New Bong Escape
Hydropower Project which is located in AJ&K is already commissioned and
generating 84 MW to the national grid.
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SIGNING OF AMENDMENT TO IA & GOP
GUARANTEE
DAVIS ENERGEN(PVT) LIMITED
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31-AUG-2017 |
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ATHMUQAM HYDROPOWER PROJECT
POE MEETING
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25-AUG-2017 |
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TURTONAS-UZGHOR HYDROPOWER PROJECT
First Meeting of POE
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10-AUG-2017 |
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First Meeting of Panel of Experts (POE) with regards to the Feasibility
Study being conducted by the Sponsors of Turtonas-Uzghor hydropower Project
was held on 10th August 2017 in the PPIB office.
Turtonas-Uzghor Hydropower Project will be located on River Golen Gol in
Chitral District, Khyber Pakhtunkhwa. PPIB issued a Letter of Intent (LOI)
on 20th March 2017 to the consortium consisting of Sinohydro Corporation
China, and Sachal Engineering Works (Pvt) Ltd. under Power Policy 2015 for
development of the project.
The sponsors are conducting the Feasibility Study which
is being monitored by the POE appointed by PPIB under the Policy with due
representation from public and private sectors. The POE in its meeting
reviewed the Inception Report presenting the progress of project and the
progress was found satisfactory till date.
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PPIB ISSUES LOS TO FIRST EVER HVDC TRANSMISSION LINE PROJECT IN PAKISTAN
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04-AUG-2017 |
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Private Power and Infrastructure Board
has issued Letter of Support (LOS) to +- 660 kV Matiari-Lahore HVDC
Transmission Line Project. The Project will have bipole HVDC technology,
having approximately 880 kilometers length, with two converter stations one
each at both Matiari and Lahore ends. The line will have transfer capability
of transmitting 4000 MW. This is the first ever transmission line project in
the private sector in Pakistan and first project under the Transmission Line
Policy 2015 approved by the present government to incentivize private sector
for development of transmission lines in order to support huge new power
generation. Being implemented under the China Pakistan Economic Corridor
(CPEC) agreement, the project sponsors are China Equipment and Technology
Corporation (CET), which is a subsidiary of State Grid Cooperation of China
(SGCC). The Project is being developed on Build-Own-Operate-Transfer (BOOT)
basis for a term of 25 years. NEPRA has approved its tariff on 4th May 2017,
and the Letter of Support (LOS) has been issued on 4th August 2017, after
which the sponsors are required to achieve financial close. The Commercial
Operations of the project is targeted in 2020. The project will primarily be
used for evacuation of power from Thar based power generation projects which
is another success of the present government to utilize the unused
indigenous coal; at Thar lying unexploited for decades.
Currently PPIB is
handling portfolio of thirty two (32) multiple fuel (coal, hydro and R-LNG)
based independent power projects (IPPs) having cumulative capacity of more
than 19,500 MW worth multi billion dollars. The portfolio contains sixteen
hydropower project of 6,430 MW, thirteen coal based projects of 9,491 MW
(five imported coal based projects of 4,423 MW, seven Thar coal based
projects of 4,950 MW) and three R-LNG based combined cycle gas turbine
projects of 3,633 MW. These projects are at different stages of development,
some are in testing and commissioning phase, some are under construction,
while others are under Financial Closing and Pre-Financial Closing stages.
It is targeted that 7500 MWs are completed by 2018 and 14,000 MWs by 2021
from the private sector.
The HVDC transmission system is considered technically
and economically more viable for power transmission over longer distances
due to its higher transmission capacity, higher efficiency, lower losses and
cost effectiveness etc. The Matiari-Lahore Transmission Line will be first
ever HVDC transmission line in Pakistan.
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ALL STEPS BEING TAKEN TO ERADICATE POWER OUTAGES
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07-JUN-2017 |
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Minister for Water and
Power Khawaja Muhammad Asif today presided over the 110th meeting of Private
Power and Infrastructure Board (PPIB) held in the Ministry of Water & Power.
The Board was briefed that a number of upcoming projects based on affordable
fuels like coal, hydro and RLNG are at final stages of completion to
eradicate power outages. The 1320 MW Sahiwal Coal Power Project achieved
Financial Close and started power generation after inauguration by the Prime
Minister Muhammad Nawaz Sharif. Furthermore, 720 MW Karot Hydropower Project
which is located at River Jhelum on dual boundary of Punjab and AJ&K has
also achieved Financial Close and started construction. The Board was
informed that the first unit of 2 x 660 MW Port Qasim Power Project will
start generation in November this year while COD will be achieved in May
2018. The Minister said that the timely completion of upcoming power
projects is very important for attaining the goal of zero outages for which
present government desires PPIB to provide maximum facilitation in removing
bottlenecks to avoid any hurdles or delays during the implementation of
their projects.
In order to ensure the implementation
of Thar Coal based projects, the Board keeping in view the coal supply from
the Sindh Engro Coal Mining Company (SECMC) approved timelines for Financial
Close and COD of Thar Coal based power generation projects which include 330
MW Thar Energy Limited, 330 MW ThalNova Power Thar Limited, 660 MW Lucky
Electric Power Company Limited and 330 MW Siddiqsons Energy Limited. The
Board also appreciated the initiative of China Power Hub Generation Company
(Pvt) Limited regarding construction start of 2 x 660 MW Imported Coal based
Project at Hub from its own equity to meet the COD date of August 2019.
Ongoing power projects were also
discussed in the meeting in context to the overall electricity situation in
the country. Managing Director PPIB Mr. Shah Jahan Mirza briefed the Board
on various power generation projects being handled by PPIB,
particularly the projects being processed under China-Pakistan Economic
Corridor (CPEC) and briefed the Board that the major chunk of CPEC program
comprises of energy projects being processed by PPIB for which concerted
attention is being given for timely completion.
The Minister
said that the Government is seriously working to bridge the gap between
demand and supply of electricity to accelerate the socio-economic growth of
the country and bring relief to the people. The Minister further added that
the CPEC will lay the foundation of robust power sector of Pakistan and
directed PPIB to vigilantly monitor the progress of all ongoing projects
besides other new projects so that they may not face any difficulty or
delay.
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Panel of Experts(POE) meeting was held
to review Supplementary Report on Updated Flows & Energy of 545 MW Kaigah
Hydropower Project
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29-MAY-2017 |
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PPIB ISSUES LOI TO 300 MW COAL POWER PROJECT AT GWADAR
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26-MAY-2017 |
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Private Power and Infrastructure Board (PPIB) has
issued Letter of Interest (LOI) to China Communications
Construction Company Ltd (CCCC) for development of 300 MW Imported
Coal-fired Power Project at Gwadar. This project is a component of flagship
China-Pakistan Economic Corridor (CPEC) initiative of the Governments of
China and Pakistan. The document was signed by Mr. Shah Jahan Mirza Managing
Director PPIB and from the company's side it was signed by Mr. Xu Jun, Vice
President of CCCC. M/s CCCC would develop the 300 MW power project utilizing
imported coal at Gwadar, Balochistan. The company will obtain tariff
approval from NEPRA and start construction after achievement of Financial
Closing. The said project has been approved by the Joint Cooperation
Committee (JCC) of CPEC and the PPIB Board for further processing.
Gwadar city is blessed with a warm-water, deep-sea port
situated on the Arabian Sea at Gwadar in Balochistan province of Pakistan.
The port features prominently in the CPEC framework, and is considered to be
a crucial link between the ambitious One Belt, One Road and Maritime Silk
Road projects. The economic activities foreseen at Gwadar in the near future
would require a reliable power supply.
With the addition of 300 MW Gwadar Power Project, the
portfolio of power generation projects being processed by PPIB has numbered
to nine coal based projects of 8220 MW and three hydro based projects of
2714 MW constituting aggregate total of twelve projects of 10934 MW under
the CPEC. From amongst the CPEC projects, the Honorable Prime Minister of
Pakistan has recently inaugurated the 1st unit (660 MW) of 1320 MW Sahiwal
coal based Power Project, whilst its 2nd unit of 660 MW is scheduled to come
online by December 2017.
PPIB is working as a leading institution of government
in bringing additional power generating capacity for improving energy mix in
power generation through blend of imported and indigenous fuel/resources for
upcoming IPPs. A number of hydro and local coal based power projects are
under development to cater the electricity requirements of the country on
long term basis, while imported coal based projects are being processed as a
reliable base load solution.
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PPIB BOARD APPROVES ISSUANCE OF LOI TO 878 KM
+ 660 kV HVDC MATIARI-LAHORE TRANSMISSION LINE PROJECT IN THE
PRIVATE SECTOR
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15-FEB-2017 |
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Islamabad, 15th
February, 2017: Numerous projects based on affordable fuels of coal, hydro
and RLNG are at final stages of completion to bridge the demand-supply gap
and future requirements. It was a challenge before the present Government to
arrange sufficient megawatts to meet our country's
electricity requirements but we did not only accept this challenge but opted
for a tougher choice of generating affordable electricity to accomplish our
promise to the nation. This was said by the Minister for Water and Power,
Khawaja Muhammad Asif while presiding over 109th meeting of Private Power
and Infrastructure Board held here today in the Ministry of Water & Power.
The Minister said that the current government believes in the policy of
facilitating investors, and extending full support to them for processing
and timely completion of their projects.
The Board was informed that the first
hydro power project in Khyber Pakhtunkhwa Province being developed by the
private sector under the CPEC and so far the largest hydro IPP in Pakistan
i.e. 870 MW Suki Kinari Hydropower Project has achieved financial close and
simultaneously started construction activities.
In order to ensure reliable and
sufficient power to the strategic area of Gawadar, the Board approved
processing of 300 MW Coal based Power Project at Gawadar which is being
developed by China Communication Construction Company (CCCC) and included in
the framework of China-Pakistan Economic Corridor (CPEC). Besides ensuring
energy supplies, due facilitation is also being extended by PPIB for
augmenting transmission network in the country to
transmit electricity from upcoming power projects.
In this regard, the Board granted approval to PPIB for
issuance of Letter of Interest to +660 kV High Voltage DC Matiari-Lahore
Transmission Line Project which is being developed by China Electric Power
Equipment & Technology Co. Ltd (CET) under the CPEC. This Project is not
only the first transmission line project being developed by the private
sector but it will also be the first ever HVDC transmission line in Pakistan
which features converter stations at both ends and grounding
electrode stations near Lahore and Matiari. The HVDC
transmission system offers many advantages for power transmission over
longer distances in terms of more transmission capacity, lesser losses and
cost effectiveness etc. This project will open a new horizon through
introduction of HVDC technology in Pakistan and provision of training and
development of skills for local professionals to implement and operate such
project in Pakistan in future. Simultaneously, the Board approved
Implementation Agreement (IA) and Transmission Services Agreement (TSA) for
submission to the ECC.
Earlier, ongoing power projects were
also reviewed the meeting in context to the overall electricity situation in
the country. The Managing Director PPIB Mr. Shah Jahan Mirza while briefing
the Board on the performance of PPIB stated that during the tenure of the
present government, PPIB is handling largest portfolio of its history
comprising thirty projects of more than 19000 MW. The Managing Director
further briefed the Board that PPIB is putting in untiring and unprecedented
efforts to meet the challenging and ambitious timelines of the current
government for addition of huge quantum of power generation capacity in the
national grid within few years to eliminate load shedding from the country.
This is evident from the fact that the target to commission 14000 MW in next
five years is double of the total capacity addition made during the 20 years
through PPIB's facilitation out of which 9000 MW
are expected to be materialized during next one and a half year.
The Minister and the Secretary Water
and Power in their concluding words appreciated the efforts of PPIB in
increasing energy security and achieving energy efficiency by optimal
expansion of integrated transmission & generation infrastructure and
remarked that PPIB's
performance is evident from the fact that PPIB has processed various
projects of around 12000 MW during the period of last one year which they
attributed a wonderful service for the country.
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SECURITY PACKAGE AGREEMENTS FOR
TWO 1650 MW COAL BASED POWER PROJECTS SIGNED |
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25-JAN-2017 |
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ISLAMABAD, 25th
January 2017: The Implementation Agreements (IAs) of two coal-based power
generation projects totalling 1650 MW were signed today at Ministry of Water
& Power for materializing the financing of around 2475 Million US$ as the
cumulative Projects cost. The IAs of 330 MW Thar Coal Power Project by
M/s Thar Energy Limited (TEL) and 1320 MW Power Project by M/s China Power
Hub Generation Company (Pvt) Ltd. (CPHGCL) were signed today.
Simultaneously, the Power Purchase Agreements (PPAs) of both the projects
were also signed. The Honorable Minister for Water & Power Khawaja Muhammad
Asif, Secretary Water & Power, senior officers of Ministry of Water & Power
and PPIB besides other high level officals representing the GoP and the
Projects witnessed the signings.
The 330 MW Power Project is based on
Thar Coal being developed at Thar Block-II with an investment of around 495
million US Dollars while 1320 MW Project is based on Imported Coal
which is being developed at Hub, Balochistan and will bring in investment of
around 1980 million US Dollars. Both projects being pursued by the PPIB
under the framework of China-Pakistan Economic Corrdior (CPEC) have already
been issued Letters of Support and are at advanced stages of Financial
Closure. The development pace on both projects is satisfactory, hence it is
anticipated that the 1320 MW Project is likely to start generation by end
2018 while 330 MW Project by end 2019. Both the projects have started
construction activities from their own equity.
The Minister
for Water & Power while addressing the media stated that the GoP is giving
priority to affordable generation through indigenous resources like coal and
hydro. However, currently the most focused area is Thar Coal on which the
investors are being encouraged to set up power plants. Projects in Thar, he
added will bring prosperity to people of the area by opening new economic
avenues. He said, while we are aiming to make available sufficient megawatts
by 2018 to eliminate load shedding, we are also planning capacity additions
beyond that period for long term basis. The Minister also stated that the
coal based power projects being established are utilizing latest
supercritical technology which is being introduced first time in the country
to address environmental constraints. All projects are required to get
clearance from respective environmental protection agencies before their
kick off.
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LARGEST HYDRO IPP ACHIEVES FINANCIAL CLOSE
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09-JAN-2017 |
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ISLAMABAD, 9th January 2017: With the efforts and facilitation of Private Power
and Infrastructure Board (PPIB), Pakistan has achieved another landmark by
declaring Financial Close of first hydro IPP under the framework of
China-Pakistan Economic Corridor (CPEC). 870 MW Suki Kinari Hydropower Project
achieved Financial Close after fulfilling mandatory prerequisites. The documents
have been executed by Mr. Shah Jahan Mirza, Managing Director, PPIB and Mr.
Haseeb Khan, Chief Executive of Suki Kinari Hydropower Project. The Honorable
Federal Minister for Water & Power Khawaja Muhammad Asif who is also the
Chairman of PPIB graced the occasion at a formal ceremony held at the Ministry
of Water & Power today.
This is the first hydro power project in Khyber Pakhtunkhwa Province being
developed by the private sector and so far the largest hydro IPP in Pakistan.
The construction activities at the site of project have already commenced and
the project is expected to start injecting 3081 GWh million clean, reliable and
affordable units of electricity each year to the national grid by 2022. Further,
the Government of Khyber Pakhtunkhwa will also receive a significant amount of
Rs. 1.3 Billion per annum as water use charges, while after thirty (30) years of
operations on Build-Own-Operate-Transfer (BOOT) basis under the Power Policy
2002, the Project will be transferred to the Government of Khyber Pakhtunkhwa at
a notional price of Rs. 1.
Suki Kinari Project is located on River Kunhar, a
tributary of River Jhelum, District Mansehra, in the eastern part of Khyber
Pakhtunkhwa between Naran and Paras towns. Khyber Pakhtunkhwa. M/s Al-Jomaih
Holding Company, (LLC) (Saudi Arabia), China Gezhouba Group Company (China)
and Haseeb Khan (Pvt) Ltd. (Pakistan) are Sponsors of the Project. Suki
Kinari Project is being developed with an investment outlay of US$ 1800
Million through Debt Equity ratio of 75:25%. The lenders for the Project
include Export-Import Bank of China, and Industrial and Commercial Bank of
China (ICBC)..
Minister for Water and Power stated that this latest development reflects GoP's
pledge to make CPEC a foundation for eliminating load-shedding and achieving
self-reliance through generating clean and affordable electricity in the
country. Setting up of hydro power projects will improve energy mix in the
country and reduce dependence on imported fuel resulting into saving of millions
of dollars of precious foreign exchange annually. The establishment of this
project will also be instrumental in generating economic activities as well as
creating employment opportunities for the people of the areas in particular and
will also entail improvement of the basic infrastructure in the vicinity which
will be helpful in the poverty alleviation of the people.
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