PRIVATE POWER & INFRASTRUCTURE BOARD

 

GOVERNMENT OF PAKISTAN

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

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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