PRIVATE POWER & INFRASTRUCTURE BOARD

 

GOVERNMENT OF PAKISTAN

MINISTRY OF ENERGY (POWER DIVISION)

   
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Federal Minister for Power, Sardar Awais Ahmed Leghari Presiding over

114th meeting of PPIB

17-JAN-2018

 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.

 

Federal Minister for Power, Sardar Awais Ahmed Leghari Presiding over

113th meeting of PPIB

11-JAN-2018
 

 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.

 

Honourable Prime Minister Shahid Khaqan Abbasi inaugurated 147 MW Patrind Hydropower Project at Muzaffarabad

15-DEC-2017
 

 

 

 

INAUGURATION OF FIRST UNIT OF 1320 MW

PORT QASIM COAL FIRED POWER PROJECT

29-NOV-2017
 

 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.

 

 

IMPLEMENTATION AGREEMENT SIGNED FOR 330 MW THAL NOVA COAL POWER PROJECT

24-NOV-2017
 

 

 

AGREEMENTS SIGNED FOR 330 MW THAR COAL POWER PROJECT

10-NOV-2017

 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.

 

Signing of Supplementary IA

Between PPIB and China Power Hub

09-NOV-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

112th meeting of PPIB

31-OCT-2017
 

 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.

Federal Minister for Power, Sardar Awais Ahmed Leghari Presiding over

111th meeting of PPIB

25-OCT-2017

 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.

 

Initialing Ceremony

IA - 1124MW Kohala HydroPower Project

20-OCT-2017
 

PPIB Signs Facilitation Agreement with Government of

Azad Jammu & Kashmir under Tripartite LOS Regime

08-SEP-2017

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.

SIGNING OF AMENDMENT TO IA & GOP GUARANTEE

DAVIS ENERGEN(PVT) LIMITED

31-AUG-2017
 

ATHMUQAM HYDROPOWER PROJECT

POE MEETING

25-AUG-2017

 

 
 
 

TURTONAS-UZGHOR HYDROPOWER PROJECT

First Meeting of POE

10-AUG-2017

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.

 
 

PPIB ISSUES LOS TO FIRST EVER HVDC TRANSMISSION LINE PROJECT IN PAKISTAN

04-AUG-2017
 

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.

 

 

ALL STEPS BEING TAKEN TO ERADICATE POWER OUTAGES

07-JUN-2017

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.

 

 

Panel of Experts(POE) meeting was held to review Supplementary Report on Updated Flows & Energy of 545 MW Kaigah Hydropower Project 

29-MAY-2017
 

PPIB ISSUES LOI TO 300 MW COAL POWER PROJECT AT GWADAR

26-MAY-2017

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.

 

9th ANNUAL POWER GEN CONFERENCE AT SERENA HOTEL ISLAMABAD

19-MAY-2017
 
 

 PPIB BOARD APPROVES ISSUANCE OF LOI TO 878 KM + 660 kV HVDC MATIARI-LAHORE TRANSMISSION LINE PROJECT IN THE PRIVATE SECTOR

15-FEB-2017

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.

 

 

SECURITY PACKAGE AGREEMENTS FOR

TWO 1650 MW COAL BASED POWER PROJECTS SIGNED
25-JAN-2017

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.

           

 

LARGEST HYDRO IPP ACHIEVES FINANCIAL CLOSE

09-JAN-2017

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. 

           

           

 
AFFORDABLE POWER GENERATION TOP PRIORITY OF GOVERNMENT
04-OCT-2016
 

Islamabad, 4th October, 2016: In order to cut the power generation cost and to make it affordable to the masses, coal, hydro and R-LNG are key resources under the present scenario. In order to make electricity affordable, the government has decided to replace imported fuels with indigenous resources like hydro and Thar Coal, and to focus on arranging additional megawatts to bridge the demand-supply gap through these resources. This was stated by the Minister for Water and Power, Khawaja Muhammad Asif while presiding over 107th meeting of Private Power and Infrastructure Board held today.

The Private Power and Infrastructure Board today approved issuance of Letter of Interest to two hydropower projects which were presented before the Board after evaluation of proposals by the independent consultant. These include 350 MW Athmuqam hydropower project at Neelum River, District Neelum, AJ&K, to the consortium led by Korea Hydro & Nuclear Power Co. Ltd and 58 MW Turtonas-Uzghor Hydropower Project at Golen Gol River, District Chitral to the consortium of Sinohydro Corporation Ltd, China & Sachal Engineering Works (Pvt), Ltd Pakistan. To tap hydropower potential in the country, the Board also approved solicitation of proposals through local and international media for another two hydropower projects in the private sector, which are 197 MW Kalam-Asrit and 101 MW Gabral-Kalam located in district Swat, Khyber Pakhtunkhwa under the Power Generation Policy 2015. The decision was taken eyeing improved law and order situation in the Swat Valley.

 

In order to utilize Coal deposits at Thar for power generation, the Board today appreciated and allowed conversion of 660 MW Lucky and 350 MW Siddiquesons Power from Imported Coal to Thar Coal. This will not only save huge foreign exchange from spending on imported coal but will provide affordable power to the masses.

Managing Director PPIB Mr Shah Jahan Mirza briefed the Board on current status of various ongoing power generation projects being handled by PPIB with particular emphasis on projects under China-Pakistan Economic Corridor (CPEC). MD PPIB briefed the Board that Projects investors are being facilitated to meet their commercial operation dates by 2017-2018. The Board endorsed signing of Implementation Agreement and Supplemental Agreement to 720 MW Karot Hydropower Project.

 

R-LNG based power generation projects were also discussed in the meeting with particular focus on 1180 MW project being processed at Bhikki by Quaid-e-Azam Thermal Power Private Limited (QATPL). The Board also endorsed signing of Implementation Agreement executed by the PPIB with QATPL.

The Minister appreciated the contribution of private sector in development of Pakistan's power sector and reiterated that current government is focused on tackling electricity crisis with affordable means to provide real benefit to the nation. In current situation, role of CPEC is vital as thousands of megawatts will be available by 2018 which will bring an end to long lasting electricity crisis in the country. Currently PPIB is facilitating nine projects of over 9000 MW under the fate-changer CPEC initiative.

           

 

Private Power and Infrastructure Board & Power Universal Investment Co. Ltd,

Dubai UAE executed Letter of Support  

for development of 640 MW Azad-Pattan Hydropower Project

30-Jun-2016

Islamabad, 30th June 2016: Private Power and Infrastructure Board (PPIB) and Power Universal Investment Co. Ltd, Dubai UAE, a subsidiary of China Gezhouba Group Company Limited today executed Letter of Support (LOS) for development of 640 MW Azad-Pattan Hydropower Project. Execution/Signing of the LOS will lead to further development, financing, construction and subsequently operation of the Project.

 

640 MW Azad-Pattan Hydropower Project is a run of the river hydropower project located on River Jhelum on dual boundary of AJ&K and Punjab having capability to generate clean, reliable and affordable 3.075 Billion units of electricity per year to the national grid. The Project is located very close to the load center and will be connected to the national grid through 500 kV transmission line.

 

As the Government attaches top priority to generate electricity at affordable prices utilizing indigenous resources like coal and hydro, this project assumes further importance. In line with the policy of the government, PPIB is handling & facilitating the development of this Project for its timely completion to meet the future energy requirements.

 

This Project is being developed by Power Universal Investment Co. Ltd, Dubai UAE, a subsidiary of China Gezhouba Group Company Ltd. and Laraib Group at Pakistan. The Project will be implemented on Build-Own-Operate-Transfer (BOOT) basis under the provisions of Power Policy 2002.

 

After commissioning, the Project Company will operate and maintain the Project for thirty (30) years after which it will be transferred to the Government of AJ&K at a notional price of one (01) Rupee. Further, during operation and maintenance of the Project, the Government of AJ&K/Punjab will receive Rs.1306 Million every year on account of water use charges which would be shared equally between GoAJ&K and Punjab. After transfer of the Project to AJ&K, the GoPunjab will receive full amount of water use charges i.e. Rs.1306 Million/annum.

 

PPIB is processing hydropower projects with a cumulative capacity of around 6400 MW through private sector which are at various stages of development.

           

 

 

 

STANDARD IMPLEMENTATION AGREEMENT FOR

R-LNG BASED POWER PROJECTS APPROVED
09-Jun-2016

Islamabad, 9th June, 2016: The Private Power and Infrastructure Board (PPIB) today approved the Implementation Agreement (IA) for R-LNG based Power Projects in Public Sector. This is part of the Clean, Affordable and Reliable Energy (CARE) initiative of the Government of Pakistan to address the energy shortfall through import of R-LNG for power generation. In this respect, three power plants of approximately 3600 MW are being developed, of which two projects to be located at Balloki and Haveli Bahadur Shah are being processed in the public sector by the federal government while the third one Bhikki is being developed through Punjab government.

 

As per government decision, these public sector projects will be set up under independent companies in order to bring in efficiency and transparency in operations. Accordingly, such projects will be facilitated by PPIB in IPP mode. The Power Purchase Agreement (PPA) developed by Central Power Purchasing Agency (Guarantee) Limited (CPPAGL) has already been approved by the Economic Coordination Committee (ECC). In today's meeting, the Board reviewed the draft IA for final approval of ECC. This is a major initiative of the Government to eliminate load shedding through clean and affordable energy. The meeting was chaired by the Federal Minister for Water & Power and attended by Secretary Water & Power, Managing Director PPIB and other high level federal and provincial government officials. The ongoing Private Sector Power Projects were reviewed and it was agreed that for future, PPIB should process power projects on indigenous fuels like local coal and hydropower. It was advised by the Board that the ongoing hydropower projects be expedited and their progress be monitored so that they can come online in a minimum time.

           

 
 
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