PRIVATE POWER & INFRASTRUCTURE BOARD

GOVERNMENT OF PAKISTAN

MINISTRY OF ENERGY (POWER DIVISION)


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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

11-DEC-2018

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.

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

20-NOV-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 120th Board meeting of Private Power and Infrastructure Board (PPIB)

120th meeting of PPIB

14-NOV-2018

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.

The Honourable Minister for Power Mr. Omar Ayub Khan chaired 119th Board meeting of Private Power and Infrastructure Board (PPIB)

119th meeting of PPIB

31-OCT-2018

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.

PROMOTION CEREMONY FOR DEVELOPMENT OF

1124 MW KOHALA HYDROPOWER PROJECT

24-September-2018

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.

RIVER CLOSURE CEREMONY OF 720 MW

KAROT HYDROPOWER PROJECT

22-September-2018

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.

Minister for use of indigenous resources to produce cheaper electricity

118th meeting of PPIB

23-JUL-2018

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.

660MW THAR COAL BASED IPP ACHIEVES FINANCIAL CLOSING

25-JUN-2018

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.

The caretaker Minister for Power Syed Ali Zafar visited

Private Power and Infrastructure Board (PPIB)

20-JUN-2018

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.

OUTSTANDING CONTRIBUTION IN POWER GENERATION BY PPIB

117th meeting of PPIB

25-MAY-2018

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.

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

14 of May-2018

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.

Federal Minister for Power, Sardar Awais Ahmed Leghari Presiding over

116th meeting of PPIB

09-MAY-2018

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.

Managing Director, Shah Jahan Mirza addressing in The CPEC Summit 2018, organized by Daily Dawn at Karachi

23-24 of April-2018

Federal Minister for Power, Sardar Awais Ahmed Leghari Presiding over

115th meeting of PPIB

14-MAR-2018

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.

SECURITY PACKAGE AGREEMENTS FOR

TWO 990 MW THAR COAL BASED POWER PROJECTS SIGNED

08-MAR-2018

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.

COAL BASED PRIVATE POWER PROJECT OF

1320 MW ACHIEVES FINANCIAL CLOSURE

26-JAN-2018

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.

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.

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