PRIVATE POWER & INFRASTRUCTURE BOARD

 

GOVERNMENT OF PAKISTAN

MINISTRY OF WATER & POWER

   
  NEWS/EVENTS

 

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.

           

ROAD TO SELF RELIANCE: PPIB APPROVES TWO 330 MW PROJECTS BASED AT THAR COAL
03-May-2016

Islamabad, 3rd May, 2016: The Board of Private Power and Infrastructure Board approved today two private sector power projects based on Thar Coal. Hub Power Company Limited will build 330 MW Power Project at Block-II of Thar, Sindh while another 330 MW power project will be completed at the same block of Thar by Thal Power (Private) Limited. Presiding over 105th meeting of Private Power and Infrastructure Board (PPIB) held here today, Minister for Water and Power Khawaja Mohammed Asif stated that while the immediate power requirements of the country are being catered through a mix of fuels, however for the medium to long term requirements of the country, the government focuses and prioritizes the use of indigenous resources like hydropower, local coal, wind and solar etc. He said that a treasure of 175 billion tonne of coal has been sitting idle at Thar for a long time and it is the first time in history of the country that our government has mobilised resources to utilize it for power generation. Thar coal can be highly instrumental in injecting a large chunk of megawatts into the system through generating cheap electricity. This asset is attracting large number of domestic and foreign Investors interested in setting up power generation plants. The Board also appreciated the achievement of Financial Close by 660 MW Engro Powergen last month which has now started construction activities. This is the first power project to be at this advanced stage based on the local Thar coal.

 

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). He further explained that keeping in view the priority of the Government of Pakistan, to provide relief to the people by summers next year fast track measures were adopted, and after following the mode of international competitive bidding, Atlas Power Ltd. were considered qualified to develop a 220MW R-LNG based IPP at Sheikhupura Punjab. The Board today approved submission of the proposal to NEPRA for further processing as per NEPRA regulations. 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 ten projects of 11000 MW under the game-changer CPEC initiative.

 

Secretary Water and Power made a presentation to the Board on the government priorities vis a vis indigenous fuels for projects beyond 2018. In order to achieve economic revolution, Pakistan has to be self-reliant in the electricity generation for which current government is already working on number of projects both in public and private sectors to generate thousands of megawatts through the local resources available in the country he said.

           

 

PPIB ISSUES LETTER OF SUPPORT TO

1320 MW COAL BASED IPP AT HUB

22-April-2016
Minister for Water and Power witnessing the signing ceremony of LOS to 1320 MW Coal Based IPP at HUB

Islamabad, 22 April, 2016: Private Power and Infrastructure Board (PPIB) today issued Letter of Support (LOS) to China Power Hub Generation Company (Pvt) Limited (CPHGCL) for development of 1320 MW imported coal based power generation project at Hub, Balochistan. The project is being sponsored by Hub Power Company Limited and China Power International Holdings. Minister for Water & Power Khawaja Muhammad Asif, Secretary Water & Power Mr. Mohammad Younus Dagha and other senior officials of PPIB and Ministry of Water & Power witnessed the ceremony. The document was signed by Mr. Shah Jahan Mirza, Managing Director PPIB and from the company's side it was signed by Mr. Zhao Yonggang, CEO of CPHGCL.

 

Being included as 'Priority Project' under the China-Pakistan Economic Corridor (CPEC) program, this project assumes further importance. The Project shall be instrumental in socio-economic uplift of the remote area of Hub besides generating employment opportunities for the local population. The project development is progressing at rapid pace and it is expected that it will come online by in 2019.

 

Khawaja Asif said that in order to get sufficient and affordable electricity in short time, Private Power and Infrastructure Board (PPIB) has been mandated by the government to process power generation projects utilizing coal, hydro and R-LNG through private sector. As a result of efficient processing by PPIB, so far two coal fired power projects of 2640 MW which include 1320 MW Power Project by Sinohydro Resources/Al-Mirqab Capital Qatar at Port Qasim, Sindh and 1320 MW Power Project by Huaneng Shandong Ruyi at Sahiwal, Punjab have already started construction activities. The 2 x 330 MW Thar coal based Engro Powergen at Thar Block-II, Sindh after achieving Financial Close has entered into the construction phase. With proactive support of PPIB, all the project related activities were timely completed which lead to the ground breaking of the project recently on 11th April, 2016.

 

PPIB also holds the honour of paving way for hydro IPPs in the country through successful completion of 84 MW New Bong Escape Hydropower Project by HUBCO group. Currently, 147 MW Patrind and 102 MW Gulpur Hydropower Projects are under construction, which are expected to be completed by April 2017 and October 2019 respectively.

 

 
PPIB Receives Excellent Response for Development of Hydropower Project
20-April-2016

Islamabad, 20th April 2016: An encouraging response has been received from the international investors for the development of two hydropower projects, 58 MW Turtanas-Uzghor and 350 MW Athmuqam. Prominent companies from China, South Korea, UAE and Pakistan submitted their technical proposals today. The initiative is part of the present government commitment to add maximum affordable and sustainable electricity generation based on indigenous and clean resources

 

Private Power and Infrastructure Board (PPIB) had invited Expressions of Interest from prospective investors for development, financing, construction and 25 years operations of these two projects under Power Generation Policy 2015 through national and international print media on 14th January 2016. In response, three (3) entrepreneurs showed their interest for Turtanas-Uzghor project, while six (6) entrepreneurs have submitted their expressions of interest for the Athmuqam project.

Three companies namely Sachal Engineering Works Pvt Ltd, Coastal Saba Power Company Ltd ( Consortium of UAE) and Aequitas Pvt Ltd ( China ) submitted their interest for 58 MW Turtanas-Uzghor Hydropower Project while six companies  which submitted their bids for 350 Athmuqam project  are China Gezhouba Group Company Ltd (China), Daelim Industries Company Ltd  (Korea), Korea Water Resources Corporation (Korea), Aequitas Pvt Limited (China), Powerchina Resources Ltd (China) and UEG Renewable Energy Group Pvt Ltd (China). 

 

The proposals received for both the projects were opened by the committee constituted to oversee the development process of the projects in the presence of bidding companies representatives. The Committee is being headed by Managing Director PPIB,  Shahjahan Mirza having members from Government of AJK, Government of KP, Azad Jammu and Kashmir Council, Ministry of Water & Power, NTDC, CPPA (G), Wapda and PPIB.

 

The proposals will be evaluated based on the technical and financial credentials of the applicants, and following the approval of the Board of PPIB, highest ranked party among contenders of each project will be offered to undertake development of the project through issuance of Letter of Interest for carrying out bankable feasibility study.

  

The 58 MW Turtanas-Uzghor Hydropower raw site project is located on Golen Gol River in Chitral Valley, Khyber Pakhtunkhwa (KP) while Athmuqam Hydropower project site is located in AJK on River Neelum. The projects will attract millions of dollars of investment, besides providing jobs to local people as well as economic and social uplift in the area. After completion these projects will provide clean-reliable-affordable electricity to the national grid saving millions of dollars every year in terms of fuel imports. Further, AJK and Government of KP will receive millions of rupees on account of water use charges during the term of both project operations.

 
14-March-2016

Islamabad, 14th March, 2016

The Government of Pakistan accords high importance to the China Pakistan Economic Corridor (CPEC) which will give a major relief to the power sector of Pakistan. We are committed to prioritize this initiative and in this regard, the investors are being facilitated to meet various timelines including commercial operation dates specified under the framework of CPEC. This was stated by the Minister for Water and Power, Khawaja Muhammad Asif while presiding over 104th meeting of Private Power and Infrastructure Board held here today.

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. The government is not only focused on arranging additional megawatts to bridge the demand-supply gap, but targeting on these cheaper fuels to bring down the electricity generation cost. Managing Director PPIB Mr. Shah Jahan Mirza briefed the Board on current status of various ongoing power generation projects, including hydro and coal based power generation projects being processed under the framework of CPEC. Thar is considered to be the hub for hosting major coal reserves having potential of producing thousands of cheaper megawatts, hence government is particularly targeting these reserves. The progress of two Thar coal based power project (i) 660 MW Engro Powergen and (ii) 1320 MW Shanghai Electric Group Company Power project was reviewed by the Board. PPIB is expeditiously processing M/s Engro and the project is expected to achieve Financial Close by June 2016. It was briefed that two imported coal based power projects namely, 1320 MW coal based power project at Port Qasim, and 1320 MW coal based power project at Sahiwal by Chinese investors have already completed around 50% construction activities, and both projects are expected to meet the timelines specified in their agreements.

It was informed that the initial response from the bidders is very encouraging and in order to facilitate the investors community, PPIB has extended the deadline for submission of bids for 1000 MW R-LNG based power generation projects at existing GENCOs and greenfield sites by another 15 days that is till April 5, 2016. The interested parties can purchase RFPs upto March 30, 2016. The Board advised PPIB to also facilitate the processing of 3600 MW R-LNG based public sector power generation projects for timely completion.   

 

The Minister stated that government is making every effort to further mitigate the electricity crisis to provide relief to the consumer in coming summer season. The present government has improved power sector recoveries, while the issue of long outstanding dues of provinces are also being resolved amicably in coordination with respective provincial governments. 

 

The Minister and Board members expressed their satisfaction on the progress of ongoing projects being handled by PPIB and assured fullest support to PPIB in sharing Government's resolve of eliminating load shedding through affordable means.

           

 
GOVT FOLLOWING MULTI PRONGED POLICY TO CATER POWER SECTOR ISSUES
06-January-2016

Islamabad, 6th January, 2016

The Government of Pakistan is following a multi-pronged policy to address the power sector issues by using indigenous coal, imported coal, hydro and R-LNG for power generation. The investors are being facilitated to meet their commercial operation dates by end of 2017 and early 2018. The government is arranging power for future needs at affordable rates instead of expensive electricity. This was said by Minister for Water and Power, Khawaja Asif while presiding over 103rd meeting of Private Power and Infrastructure Board held here today.

 

Managing Director PPIB Mr. Shah Jahan Mirza briefed the Board on current status of various Coal and Hydropower projects being handled by PPIB. The Board advised PPIB to further expedite the projects vis a vis removing bottlenecks hampering timely completion of projects. It was informed that the 102 MW Gulpur Hydropower projects has started construction, 1320 MW Port Qasim Coal project has achieved Financial close and its first unit will start generation by December 2017. Similarly, 1320 MW Coal project at Sahiwal by Huaneng Shandong Ruyi of China is already under construction and scheduled to achieve Commercial Operation Date in December 2017, while 660 MW Engro Powergen Local Thar Coal based power project has signed Financing Documents last month and expecting Financial Closing in few weeks.

 

It was also informed that 147 MW Patrind Hydropower project would achieve its Commercial Operation Date by March 2017 as the construction activities are in full swing. He also briefed about the 1000 MW small projects based on R-LNG in the country which are targeted to start production during first quarter of 2017, and for this purpose PPIB has been directed by the Government to implement these projects in IPP mode through International Competitive Bidding (ICB) in a transparent manner asking bidders for discount on NEPRA's upfront tariff for RLNG projects.

 

Different ongoing private power generation projects particularly the projects being under taken under China Pakistan Economic Corridor were discussed in the meeting. Power projects are sharing major portion of CPEC with billions of dollars, hence their timely completion assumes further importance.

 

The Minister and Board members expressed their satisfaction on the progress of ongoing projects being handled by PPIB and assured fullest support to PPIB in sharing Government's resolve of eliminating load shedding through affordable means.

           

FIRST COAL BASED PRIVATE POWER PROJECT

ACHIEVES FINANCIAL CLOSURE

 

22-December-2015

ISLAMABAD, 22nd December 2015: Financial closure of first coal fired power generation plant in the country has been achieved by Port Qasim Electric Power Company Private Limited for establishing a 1320 MW project at Port Qasim, Karachi. Earlier, the company signed Implementation Agreement (IA) and Power Purchase Agreement (PPA) on 18th April, 2015. The project is being implemented as "Prioritized Project" under China Pakistan Economic Corridor (CPEC), which is a game changer initiative taken by the Prime Minister Muhammad Nawaz Sharif for development of mega energy and infrastructure projects in the country.

  

The signing ceremony of financial closure was held here at Private Power Infrastructure Board (PPIB) office Islamabad. The ceremony was attended by Mr. Shah Jahan Mirza, Managing Director, PPIB and Mr. Cai Bin, Chief Executive of the Company alongwith other senior officers. The sponsors of the Project are Sinohydro Resources Limited, China and Al-Mirqab Capital Qatar, while lender to the project is China Eximbank. The project is being developed at a cost of US$ 1.9 billion and targeted to start production by end of 2017.

  

The Financial Closing of first coal fired IPP is a matter of honor for the present Government, Ministry of Water & Power and  PPIB similar to completing Pakistan's first hydro IPP couple of years ago. The Project is an evidence of another step of the government of Pakistan's sincere interest of utilizing coal for power generation to provide affordable and reliable power generation for elimination of load shedding in the country.

 

AJK-IA INITIALLING CEREMONY OF KAROT HYDROPOWER PROJECT

23-November-2015

GROUNDBREAKING CEREMONY OF 102MW GULPUR HYDROPOWER PROJECT

15-October-2015

Kotli, 15th October 2015,

Prime Minister Muhammad Nawaz Sharif today performed groundbreaking of 102 MW Gulpur Hydropower project near Kotli, Azad Jammu and Kashmir.

 

Gulpur is a run of the river hydro power project being built on the river Poonch, a major tributary of river Jhelum, some 10 kilometers on the out skirts of Kotli city in Azad Jammu and Kashmir. This is the third hydel IPP   being developed through Private Power and Infrastructure Board. The project will be completed in four years at a cost of 317 million US dollars.  

 

The groundbreaking ceremony was attended by AJ&K Prime Minister, Chaudhary Abdul Majeed, Federal Minister for Water and Power, Khawaja  Muhammad Asif, Federal Minister KA & GB Chaudhry Muhammad Barjees Tahir, State Minister for Water & POwer Abid Sher Ali, Secretary Water and Power Muhammad Yunus Dhaga, MD PPIB Shah Jahan Mirza senior officials of the Ministry water and Power, PPIB, AJK government and Mira Power Company Limited.

 
 

AJ&K Implementation Agreement Direct Agreement (AJ&K IA-DA) & Water Use Agreement of 102 MW Gulpur Hydro Power Project Signed

13-October-2015
 

PPIB TARGETS TO ACHIEVE FINANCIAL CLOSE

FOR OVER 5000 MW IPPs DURING THIS YEAR
17-Sep-2015

Islamabad, 17th September, 2015

Private Sector Projects totalling 5155 MW will achieve Financial Close by the end of year 2015. This was stated by the Federal Minister for Water & Power Khawaja Muhammad Asif while chairing the 102nd meeting of the Board of Private Power and Infrastructure Board (PPIB) held here today. He said that the government is making every effort to increase electricity supply to the national grid through all possible avenues, private sector being one of them.  

The private sector power projects which will achieve Financial Close this year are 102 MW Gulpur Hydropower Project at Poonch River, Azad Jammu & Kashmir, 720 MW Karot Hydropower Project at Jhelum River, District Rawalpindi, 870 MW Suki Kinari Hydropower Project at Kunhar River, Mansehra, Khyber Pakhtunkhwa, 1320 MW Port Qasim Coal based Power Project at Port Qasim, 660 MW Engro Powergen Coal based Power Project at Thar Block-II, Sindh, 1320 MW Shandong Imported Coal based Power Project at Qadirabad, Sahiwal and 163 MW Grange Holdings Coal based Power Project at Arifwala, Punjab. The said projects have local and foreign investments where investors from China, Korea, Qatar and Saudi Arabia have large equity contributions in these projects. The presence of international investment groups/companies in the development of private sector power projects shows the confidence of the international community in the government's policies.

Different ongoing private power projects were also discussed in the meeting in context to the overall electricity situation in the country. The Board was briefed on coal and hydel based private power generation projects being handled by PPIB, particularly the projects being processed under China-Pakistan Economic Corridor. The Minister and Board members indicated their satisfaction on the progress and advised PPIB to keep expediting the projects so that the timely completion is ensured.

           

 

Direct Agrrement of 102 MW Gulpur Hydro Power Project Signed

11-September-2015

Islamabad 11 September 2015:

The Implementation Direct Agreement of 102 MW Gulpur Hydropower Project was signed today for materializing the financing of around 320 Million US$ as the Project cost.  The security package agreements of the project i.e GoP Implementation Agreement, AJ&K Implementation Agreement, Water Use Agreement have already been signed and Power Purchase Agreement has been initialed.

 

The Direct Agreement was signed on behalf of the Government of Pakistan by Shah Jahan Mirza Managing Director PPIB, on behalf of the sponsors by Chief Exectutive of Mira Power Limited and by Legal Attorney of the lenders which include Asian Development Bank (ADB), International Finance Corporation (IFC) and Korean Export-Import Bank (KEXIM). 

 

Gulpur Hydropower Project is a run of the river scheme located on River Poonch in District Kotli, Azad State of Jammu & Kashmir. The Korean investors will inject an equity of upto 25% of the Project cost while the banks will finance 75% of the Project cost. Equity investors for the Project include renowned Korean companies namely Korea South East Power Company (KOSEP), LOTTE and DAELIM.

 

Construction of the Gulpur project will start soon after achievement of Financial Closing which is expected in few weeks. Construction will be completed in four years, and afterwards the private Korean sponsors will operate the Power Complex for next thirty years.  The Project will produce about 475 million units of clean, reliable and affordable electricity for the national grid. After completion of thirty years Complex will be transferred to the Government at notional price of Re. 1.

 
ISSUANCE OF LETTER OF INTEREST TO 2x660 MW COAL POWER PROJECT AT THAR BY SHANGHAI ELECTRIC GROUP COMPANY
21-AUG-2015

Islamabad 21st August 2015: The signing ceremony of Letter of Interest (LOI) with M/s Shanghai Electric Group Company Ltd (SEGCL) for development of 2 x 660 MW Indigenous Coal based Power Project at Thar was held today at Ministry of Water & Power. Federal Minister for Water & Power Khawaja Muhammad Asif, Secretary Water & Power Mr. Mohammad Younus Dagha, Managing Director PPIB Mr. Shah Jahan Mirza and other senior officials of PPIB, NTDCL and Ministry of Water and Power witnessed the ceremony. The LOI was signed by Mr. Shah Jahan Mirza Managing Director PPIB and from the company's side it was signed by Mr. Meng Donghai, Director of SEGCL.


Shanghai Electric Group Company will develop a project of 1320 MW (2 x 660 MW each) utilizing indigenous Thar lignite coal to be supplied by Sino-Sindh Resources which is the lease holder of Thar Block-I. The Sponsors of the Project had signed equity investment agreement with China Coal Technology and Engineering Group Corp and Joint Venture Agreement with Shanghai Electric Group Company Limited during the visit of the Chinese President to Pakistan. The project is a proof of the government of Pakistan's sincere interest of utilizing Thar coal for power generation and its development will reduce Pakistanís dependence on costly oil based power generation thus saving millions of dollars of foreign exchange. It is expected that the Project will start its commercial production during the year 2018.

 

The said 1320 MW Thar Coal based Power Project will be using Steam Turbine technology and selling power to National Transmission and Dispatch Company (NTDC) on signing of a 30 years term Power Purchase Agreement (PPA). It is pertinent to mention here that the Shanghai Electric Group Company is in the list of Priority Projects of China-Pakistan Economic Corridor (CPEC). 

 

The Federal Minister for Water and Power Khawaja Muhammad Asif said the abundant coal resource largely remains unexploited till date are estimated at around 186 billion tons out of which 175 billion tons are found in Thar alone. Our government is committed to develop Pakistanís local coal resources and utilize them for power generation, thus realizing our dream of making Thar the Energy Capital of Pakistan in coming years.

CHINESE COMPANY TO SETUP 1400 MW THAR COAL POWER PROJECT
16-JUN-2015

Private Power and Infrastructure Board (PPIB) on Tuesday approved Thar Coal based Power Generation Project of 1400 MW (350 MW each) to be set up at Thar by Shanghai Electric Group Company of China. This is the second Thar coal based IPP approved by the PPIB Board, first being 660 MW Engro Power Project. The development of Thar coal resource will provide a major breakthrough to develop huge generation capacity using cheap local coal. This project is one of the ĎPrioritized Projectsí included in the China Pakistan Economic Corridor and would start generation in 2017-18. The approval was granted in the 101st Board meeting of PPIB held here today with Federal Minister for Water & Power Khawaja Muhammad Asif in the chair. The Board also approved signing of MOU between PPIB, China Three Gorges Corporation and Silk Road Fund, China for development of private hydropower projects in Pakistan. Silk Road Fund is a development fund newly created by Government of China, with its main focus on infrastructure and energy development as well as industrial and road initiatives, whereas China Three Gorges is already developing three hydropower projects in Pakistan namely 720 MW Karot, 1100 MW Kohala and 590 MW Mahl on Jhelum River and interested in undertaking more power projects. The Silk Road Fund is willing to undertake such projects. To facilitate the power projects initiated by provinces/AJ&K/Gilgit-Baltistan, the Board also approved standardized Tri-Partite Letter of Support. The Board granted approval for issuance of LOS to 150 MW coal based power project at Arifwala, 1200 MW coal fired projects at Sahiwal, 1320 MW imported coal fired projects at Port Qasim and 1320 MW imported coal fired projects at Hub, Balochistan.

           

Ongoing private power projects were also discussed in the meeting in context to the overall electricity situation in the country. The Managing Director PPIB briefed the Board on coal and hydel based private power generation projects being handled by PPIB, particularly the projects being processed under China-Pakistan Economic Corridor. The Minister advised PPIB to keep expediting the projects so that the timely completion is ensured. While talking on CPEC, the Minister termed the initiative as a game changer in the region which would result in promotion of economic and trade activities and marked CPEC an important step for elimination of load shedding and economic development of the country.

 

While presiding over the meeting, the Minister stressed the availability of affordable electricity, and said that the vision of the Prime Minister is not only the availability of electricity, but affordable electricity to meet the future requirements of growing economy and increasing population. The Minister directed the PPIB to facilitate the investors and ensure timely completion of the ongoing projects. He stated that the progress of the all projects both new and ongoing should be reviewed regularly so that they may not face any difficulty.

           

The meeting was attended by Mr. Mohammad Younus Dagha, Secretary Water & Power, Mr. Zafar Mahmood, Chairman WAPDA, Mr. Shah Jahan Mirza, Managing Director PPIB, representatives of Ministry of Finance, Planning Division, Punjab, Sindh, Khyber Pakhtunkhwa provinces and AJ&K, members from Gligit-Baltistan and FATA, a private sector member, besides Senior Executive Director, Executives Director and Directors of PPIB and other senior government officials.

FIRST 660 MW THAR COAL FIRED POWER PLANT
IMPLEMENTATION AND POWER PURCHASE AGREEMENTS SIGNED, GENERATION EXPECTED BY END OF 2017
04-MAY-2015

Implementation Agreement (IA) and Power Purchase Agreement (PPA) of 660 MW  first coal fired power plant on local thar coal singed today by PPIB, NTDC and M/s Engro Powergen Limited (EPGL) at the Ministry of Water and Power today.

Minister of State for Water and Power, Mr. Abid Sher Ali , Secretary Water & Power, Mr. Mohammad Younus Dagha and other senior officials of PPIB, NTDCL and Ministry of Water and Power witnessed the ceremony.

The IA was signed by Mr. Shah Jahan Mirza Managing Director PPIB and from the companyís side it was signed by Mr. Shamsuddin A. Shaikh, CEO of EPGL, while the PPA was signed between Engineer Muhammad Arshad Chaudhry, MD NTDCL and Mr. Shamsuddin A. Shaikh, CEO of EPGL. according to details, Engro Powergen would develop a project of 660 MW (2 x 330 MW each) utilizing indigenous Thar lignite coal to be supplied by Sindh Engro Coal Mining Company which is the lease holder of Thar Block-II. The project is the first and pilot project to utilize Thar coal for power generation and its development will reduce Pakistanís dependence on costly oil based power generation thus saving millions of dollars of foreign exchange. It is expected that the first unit of the Project will start producing electricity by December 2017. 

The State Minister for Water and Power Chaudhry Abid Sher Ali said the abundant coal resource largely remains unexploited till date are estimated at around 186 billion tons out of which 175 billion tons are found in Thar alone. He said that present  government is committed to utilize these resources for power generation.  Talking to the journalists on the occasion, he said that Thar Coal would become Energy Capital of Pakistan in next few years. He said that it is the priority of the Government to develop Thar coal and utilize it on commercial basis. 

To a question, the State Minister said that due to effective measures taken by the present government, the duration of load shedding has come down. He said that concrete steps are being taken to reduce the transmission and distribution losses. Recovery has been improved and circular debt issue is being resolved. ( source PID, Islamabad)

PPIB ISSUES LOIs TO 3440 MW COAL POWER PROJECTS

12-MAR-2015

Islamabad, 12th March 2015: All resources are being utilized to achieve the self-sufficiency in the power generation. Coal being one of the prime sources for power generation in Pakistan, so far six (6) coal based power projects of 3440 MW have been issued Letters of Interest (LOIs) while another five (5) of 4740 MW are under process for issuance of LOIs by PPIB. Besides coal, hydel, wind, solar and nuclear resources, the GoP is also optimizing R-LNG which is another vital source of generating cheaper megawatts. This was stated by the Federal Minister for Water & Power Khawaja Muhammad Asif while chairing 100th meeting of the Board of PPIB held here today.

 

Ongoing private power projects were discussed in the meeting today in context to the overall electricity situation in the country. The Managing Director PPIB briefed the Board on coal and hydel based private power generation projects being handled by PPIB which are at different stages of processing/development. Managing Director PPIB further briefed the Board that standardized security package documents comprising Implementation Agreement & Power Purchase Agreement for coal power projects have been prepared by PPIB. Furthermore, as per the decisions of Economic Coordination Committee of the Cabinet and Cabinet Committee on Energy, PPIB has drafted a new investor friendly Power Generation Policy 2015 with comments from all stakeholders, which accommodates new fuel provisions like Coal and R-LNG for power generation. The policy will be submitted to the Council of Common Interests in a couple of days for formal approval.

 

Hydropower projects were also discussed with specific reference to the ones included in the "early harvest projects" priority list of the China Pakistan Energy Corridor, and the Board advised PPIB to expedite 870 MW Suki Kinari hydropower project on River Kunhar, District Mansehra, Khyber Pakhtunkhwa and 720 MW Karot Hydropower Project on River Jhelum at the boundary between Punjab and AJ&K.

 

Under the Minister for Water and Power, Khawaja Muhammad Asif, the meeting was attended by Secretary Water & Power, Mr. Mohammad Younus Dagha, Chairman WAPDA, Mr. Zafar Mahmood, Managing Director PPIB, Mr. Shah Jahan Mirza, members  from public and private sectors besides senior officials of PPIB and  other government officials.

 
COAL AND R-LNG ON THE CARDS FOR POWER GENERATION IN PAKISTAN
04-Feb-2015

Islamabad, 4th February, 2015: The GoP's initiatives of developing power generation projects based on coal and "Regasified Liquefied Natural Gas" (R-LNG) has sparked a lot of interest of the international as well as local investors' community. While work is in progress on options like hydel, wind and solar for power generation, the government is also taking new initiatives on priority to generate power from coal and LNG. This was stated by the Minister for Water & Power Khawaja Muhammad Asif while addressing the "Stakeholders Consultative Conference on Coal and R-LNG based Power Generation Projects" held today at Serena Hotel Islamabad which he was presiding as Chief Guest.  The conference was organized by the Ministry of Water & Power and Private Power & Infrastructure Board (PPIB) with the objective to seek views from the stakeholders regarding challenges being encountered by them in developing IPPs and suggestions to improve the present Power Policy, Short Term Guidelines and Security Package Agreements (Implementation and Power Purchase Agreements) with the aim to make them more productive and effective. The Conference was also attended by the State Minister for Water & Power, Chaudhry Abid Sher Ali, State Minister for Petroleum and Natural Resources, Mr. Jam Kamal Khan, Secretary Water & Power Mr. Mohammad Younus Dagha, Managing Director PPIB Mr. Shah Jahan Mirza  besides high level government officials from various federal/provincial ministries/departments and local/foreign representatives from different stakeholders, World Bank, IFC, and various local banks' representatives.

 

Khawaja Muhamad Asif said that the power sector has number of problems like circular debt, low recovery of Discos etc., and these challenges are priority areas of the government. He told the participants that the government is actively working on Transmission Lines Policy to attract the investors with their suggestions and by sorting out the issues being faced by them. The Minister assured the participants that due to steps being taken by the government, the investors and the public would get some tangible relief in the power sector by end of this year.

 

Officials from Ministry of Petroleum and Natural Resources shed light on various aspects of     R-LNG and its usefulness towards power generation. Managing Director PPIB also highlighted the importance of R-LNG and Coal for power generation. He conveyed that under the "Clean, Affordable and Reliable Energy" (CARE) Program, the GoP is planning to establish IPPs of 3600 MW through R-LNG for which advertisement will be placed in the national and international print media shortly. Besides this, R-LNG is also being arranged for existing thermal IPPs to cut generation cost and achieve higher efficiency, he added.

 

The Conference resulted into an interactive session, in which the representatives of investors exchanged their views and explained the challenges hurdling their efforts in power generation and tabled their suggestions to remove the bottlenecks and procedural delays, while the government officials assured their fullest cooperation in addressing their apprehensions and reservations.

 

SECURITY PACKAGE PREPARED FOR COAL BASED POWER PROJECTS
15-Dec-2014

Islamabad, 15th  December, 2014: Private Power and Infrastructure Board (PPIB) on Monday approved Security Package Documents for coal power projects. These documents will now be placed before the ECC of the Cabinet for approval. The coal security package documents will facilitate fast track implementation of indigenous coal projects at Thar Sindh, Salt Range Punjab, as well as imported coal projects.

 

While presiding over the 99th meeting of PPIB Board, the Secretary Water and Power Muhammad Younas Dhaga said that in order to develop the upcoming coal power projects on a fast track basis, it was inevitable to prepare the Security Package Agreements, which shall enable the companies to achieve their financial closure expeditiously. The agreements include the Implementation Agreement (IA) and the Power Purchase Agreement. The documents have been prepared by PPIB after due consultations with the relevant government and private sector stakeholders, and the pertinent coal specific changes have been incorporated. After seeking comments from the related ministries and departments. the same will be submitted to the ECC of the Cabinet for approval.

 

In order to facilitate the project sponsors to achieve a financial closure and move ahead with the construction activities. The Board approved extension of Letter of Support of the 100 MW Gulpur Hydropower Project to be located at Poonch River, District Kotli, Azad Jammu and Kashmir.

 

The Secretary said that the government is taking various initiatives to generate affordable energy to meet the future requirements. Three pronged strategy based on short, mid and long term power generation projects have been devised on the direction of the Prime Minister Nawaz Sharif. He said that China has also signed number of agreements for development of power projects under Pak-China Economic Corridor programme. The initiatives taken by the present government would end the energy shortage, he added.

The meeting was attended by public and private sector members of the Board.

 

LOI  ISSUED TO 660 MW COAL POWER PROJECT AT THAR

THAR IS THE FUTURE ENERGY CAPITAL OF PAKISTAN:  KH ASIF
20-Nov-2014

Islamabad 20th November 2014: Private Power and Infrastructure Board (PPIB) on Thursday issued Letter of Interest to Engro Powergen Limited (EPGL) for development of 660 MW Thar Coal Power Project. Federal Minister for Water and Power and other senior officials of PPIB and Ministry of Water and Power witnessed the ceremony. The document was signed by Mr. Shah Jahan Mirza Managing Director PPIB and from the company's side it was signed by Mr. Shamsuddin Shaikh, CEO of EPGL.


PPIB Board in its recent meetings accorded approval for processing the subject project under the "Guidelines for setting up of Private Power Projects under Short Term Capacity Addition Initiative-August 2010" and approved issuance of LOI to the sponsors upon fulfillment of all requirements as per the Guidelines. Engro Powergen would develop a project of 660 MW (2 x 330 MW each) utilizing indigenous Thar lignite coal to be supplied by Sindh Engro Coal Mining Company which is the lease holder of Thar Block-II. The project is the first and pilot project to utilize Thar coal for power generation and its development will reduce Pakistan's dependence on costly oil based power generation thus saving millions of dollars of foreign exchange. It is expected that the project will start its commercial operation by December 2017.

 

The Minister for Water and Power Khawaja Muhammad Asif said the abundant coal resource largely remains unexploited till date are estimated at around 186 billion tons out of which 175 billion tons are found in Thar alone, however our government is committed to utilize these resources for power generation.  Talking to the journalists on the occasion, he said that Thar Coal would become Energy Capital of Pakistan in next few years. He said that it is the national priority of the Government to develop Thar coal and utilize it on commercial basis. He said that Thar presently known as starvation area, after completion of the power projects would become energy capital and drought would become the horrible dream of the past.

 

To a question, the Minister said that due to effective measures taken by the present government, the duration of load shedding has come down to three to four hours. He said that concrete steps are being taken to reduce the transmission and distribution losses. Recovery has been improved and circular debt issue is being resolved. He told them that some power projects would also be initiated on LNG and would be completed in three years.

GOVERNMENT'S MAIN FOCUS ON LOCAL RESOURCES FOR POWER GENERATION

Islamabad, 11th November, 2014: Letter of Interest (LOI) has been issued to 590 MW Mahl Hydropower Project to consortium of M/s CWE Investment Corporation China (a subsidiary of China Three Gorges) and M/s Trans Tech Pakistan here today. Mr. Sheng Zhendong countersigned the LOI document on behalf of sponsoring consortium, while on behalf of the Government of Pakistan (GoP), Mr. Shah Jahan Mirza, Managing Director, PPIB signed the document. Federal Minister for Water and Power, Khawaja Mohammad Asif witnessed the ceremony. Board members of PPIB and senior government officials besides representative of sponsoring consortium also present on the occasion. The Mahl project is a Run-of-River Hydropower Project which is being set up at the dual boundary of Punjab and AJ&K, with an estimated cost of US$ 1200 million.

 

While presiding over the 98th meeting of PPIB Board, the Minister Khawaja Asif said that the primary focus of the government is on local resources for power generation and emphasis is on coal in the   southern region and hydro projects in the northern region of the country. The enormous amount of coal at Thar needs to be utilized for power generation for which the work has been started. In the meeting today it was decided to expedite the two projects at Thar coal, i.e 1200 MW by China Power International Holding and 660 MW by Engro Powergen Ltd. and it was informed that Letters of Interest would soon be issued to both the projects. It was also decided by the Board to advertise the 350 MW Athmuqam Hydropower Project to be located on river Neelum in AJ&K to renew investor interest in the area.

 

The Minister said that various power projects have been signed during the recent visit of Prime Minister Nawaz Sharif to China, and the Chinese companies are eager to invest in Pakistan. The minister conveyed that the Government of China has committed to create a "green channel" for fast track investments for the power sector of Pakistan. He dispelled the impression that the hydro projects in Khyber Pakhtunkhawa are not being considered by the federal government. He said that during the visit of Prime Minister to China, Suki Kinari hydro project of 870 MW was also signed, to be developed in District Mansehra, Khyber Pakhtunkhawa. He asked PPIB to expediently process the coal and hydel projects and facilitate them for timely completion.

 
SIX COMPANIES SUBMIT EOIs FOR  6600 MW COAL BASED POWER GENERATION PROJECTS
31-October-2014

Islamabad 31 October, 2014. Six companies have submitted their Expressions of Interest (EOIs) against imported coal based IPPs of cumulative capacity of 6600 MW to be set up at Gadani Power Park, (Balochistan).

 

The EOI opening ceremony was held here today at Private Power & Infrastructure Board (PPIB), which was attended by the Managing Director PPIB,  Shah Jahan Mirza, Additional Secretary M/O Water and Power, Omer Rasul, Executive Directors, Directors of PPIB, representative of Pakistan Power Park Management Company Limited, senior government officials and representatives of the bidding companies. 

               

The EOI were received in response to PPIB advertisement for the "Empower Pakistan Coal Power Generation through Super Critical Technology" to develop a flagship project of the government to produce cheaper electricity. Last date for submission of proposals was October 31, 2014.  In response to the advertisement, Six (06) EOIs were received within the EOI submission deadline today.

 

The companies which submitted their EOIs include China Gezhouba Group Company Limited; Genting Energy, Malaysia; China Machinery Engineering Corporation, China; ANC Holding of Dubai, UAE; China Huadian Engineering Company Limited; and Harbin Electric International.

 

An independent consultant will review the proposals according to the predefined criteria, and notification of qualified bidders is expected to be issued within a month.

 

ALL STEPS BEING TAKEN TO COUNTER LOAD SHEDDING

27-August-2014

Islamabad, 27th August 2014: Government is taking all possible steps to bridge the gap between demand and supply of electricity in order to accelerate the socio-economic growth of the country and bring relief to the people. We are optimizing the available resource base for upcoming power generation projects while at the same time making the existing power generation and distribution facilities efficient and also controlling line losses. This was stated by the Federal Minister for Water & Power Khawaja Muhammad Asif while chairing 97th meeting of the Board of PPIB held here today.

Ongoing private power sector projects were discussed in the meeting today in the context with the overall electricity situation in the country. The Minister advised that while remaining within legal bounds, we should provide maximum facilitation to the projects so that maximum number of megawatts are materialized. The Board was briefed that Expressions of Interest (EOIs) were invited through local/international press for establishing coal-fired power plants at the 6600 Megawatt Gadani Power Park. However due to prevailing situation in the country, the expected response could not be achieved and many prominent investors have requested extension of date in submission of EOIs.  The Board approved the extension in closing date by 29 September 2014 so that a healthy competition is generated.

Hydropower projects were also discussed and it was decided to extend the Letter of Support of 870MW Sukki Kinari hydropower project on River Kunhar, District Mansehra, Khyber Pakhtunkhwa which is included in the "early harvest projects" priority list of the China Pakistan Energy Corridor. This extension will allow the project to take necessary measures to implement the project at the earliest. The Board also desired removal of all bottlenecks for early development of 132 MW Rajdhani Hydropower Project in AJ&K with due cooperation of the Government of Azad Jammu & Kashmir. PPIB acts as agent for and on behalf of the AJ&K Council for development, facilitation and implementation of power projects in AJ&K

Under the Minister for Water and Power, the meeting was attended by Mr. Sohail Akbar Shah, Additional Secretary Ministry of Water & Power/Managing Director PPIB, Mr. Zafar Mahmood, Chairman WAPDA, representatives of Ministry of Finance, Planning Division, Ministry of Petroleum & Natural Resources, Federal Board of Revenue, Punjab, Khyber Pakhtunkhwa provinces and AJ&K, a private sector member, besides Executives Directors and Directors of PPIB and other senior government officials.

 
 

4250 MW  COAL BASED PRIVATE POWER PROJECTS GIVEN GO-AHEAD

02-July-2014

Islamabad, 2nd July 2014: Approval was given for processing of power projects totalling 4250 MW based on coal in the  96th meeting of the Board of PPIB held here today under the chairmanship of Federal Minister for Water & Power Khawaja Muhammad Asif.

Private Power and Infrastructure Board has received a very encouraging response from the private sector where prominent local and international investors have shown interest in developing coal based power projects in the country at locations other than Gadani Power Park as well. These include HUBCO (660MW), Global Benefit Malaysia (660MW), Giga Energy (420MW), Yunus Brothers/Lucky Cement (660MW), Asiapak Hong Kong (2x660MW), Siddiqsons Group (330MW) Asia Petroleum (200MW). These power plants are proposed at various locations that includes Hub, Port Qasim, Karachi coastal area, Faisalabad, Gharo and Jamshoro. In addition to these, Sino Sindh Resources having China Power International as partners, and Thar Power Company, which is a joint venture of Engro Energy and Government of Sindh have shown interest in developing 2x600MW and 2x330MW power plants respectively at Thar. The Board today approved the processing of these projects after completion of the required formalities. The Minister assured that the Government was committed to provide uninterruptible cheap power to the people of Pakistan and is working on all avenues to achieve its objective. The Minister informed that in order to evacuate power from the upcoming IPPs the Government is inviting private sector for construction of transmission lines, and the policy in this regard is expected to be announced shortly.

The Board was also briefed that PPIB is constantly monitoring early implementation of the hydropower projects included in the "early harvest projects" priority list of the China Pakistan Energy Corridor. These include 870MW Sukki Kinari hydropower project, 720MW Karot hydropower project and 1100 MW Kohala hydropower project. Keeping in view the importance being accorded to projects based on indigenous resources, Letter of Support was extended today for the 100MW Gulpur Hydropower Project located at Poonch River near Kotli, Azad Kashmir.

Under the Chairmanship of Khawaja Muhammad Asif, the meeting was attended by Ms. Nargis Sethi, Secretary Water & Power, Mr. Zafar Mahmood, Chairman WAPDA, Mr. Sohail Akbar Shah, Additional Secretary Ministry of Water & Power/Managing Director PPIB, Mrs. Azra Mujtaba, Additional Secretary Ministry of Finance, representatives of Ministry of Petroleum & Natural Resources, Federal Board of Revenue, Punjab, Sindh & Khyber Pakhtunkhwa provinces, AJ&K, Gilgit-Baltistan and FATA, private sector member, besides Executives Directors and Directors of PPIB and other senior government officials.

 

Power shortage to be overcome in 3 years: Prime Minister 

25-April-2014

DERA MURAD JAMALI, April 25 (APP): Prime Minister Muhammad Nawaz Sharif on Friday said the shortage of electricity in the country would be overcome in three years. "The days of darkness are numbered and the future of Pakistan is bright," the Prime Minister said after inaugurating the 404 megawatt Uch-II Power Plant at Dera Murad Jamali that will contribute an aggregate of 990 MW gross electricity to the national grid.   The Uch-II Power Plant, the Independent Power Plant (IPP), has been constructed by GDF SUEZ, a French company, presently working in 70 countries.

       Addressing the gathering at the inauguration ceremony here, the Prime Minister termed democracy as an self-regulated system of accountability and said democratic norms were flourishing in the
country.  He said the government aimed at ensuring economic and political independence of the people and vowed to eliminate unemployment, inflation, illiteracy and sense of insecurity from the country.  "A Pakistan free from these evils is our goal," the Prime Minister said.  The Prime Minister said Balochistan was neglected in the past,but the democratic government would take necessary steps to mitigate the sense of deprivation of people of the province.  He said his government had planned a big development programme for Balochistan and its people.   Nawaz Sharif announced that government would ensure
provision of natural gas to each and every city of Balochistan within three years.  He directed Minister of Petroleum and Natural Resources ShahidKhaqanAbbasi to personally monitor this project and ensure its completion on time.

He announced installation of two separate power lines from Uch-II Power Plant to Naseerabad and Sibbi divisions of Balochistan.  The Prime Minister said the power project was significant mainly for two reasons; firstly, it would be based on an indigenous gas by substituting expensive liquid fuel, thus saving foreign exchange, and secondly it has been set up in Balochistan.  He commended the contribution of GDF Suez for successful commissioning of the project which he said was a valuable addition to the national grid.  He said GDF Suez had been a reliable energy partner for Pakistan for many years and was also playing its role in the socio- economic development of the province.   He invited the French company to undertake more investment in Pakistan's energy projects.   Nawaz Sharif said the electricity shortfall in the system had a very negative impact on the development of the country.

He said new power projects were being constructed using conventional and renewable energy resources and technologies.   He mentioned that the government's steps in this regard including clearing of Rs 500 billion of circular debt, and initiating the work on Neelum Jhelum project, Nandi Pur project and Guddu power project that will add 959 MW, 425 MW and 747 MW to the national grid respectively. Besides, development of Thar Coal Project, Jhimpir project in Sindh and solar projects in Punjab are also prominent steps to overcome power shortage, he said. 

The Prime Minister lauded the services of Private Power and Infrastructure Board (PPIB) which under the supervision of Minister for Water and Power was facilitating the investors through one-window system.

                PPIB has played pivotal role in the successful commissioning of this 404 MW Uch-II Power Project. PPIB issued LOS to the Sponsors on 3rd March 2010 and on behalf of GOP signed the IA with the Sponsors on 14th January 2011 and also issued sovereign guarantee against the payment obligations of the power purchaser. Apart from signing the IA, PPIB fully assisted the Project Company in execution of Power Purchase Agreement with NTDCL and Gas Supply Agreement with OGDCL. In order to resolve some major outstanding issues in finalization of Security Agreements, PPIB coordinated with all the stake holders including Project Sponsors, Lenders, Power Purchaser, Gas Supplier, Regulators, Government of Balochistan and various relevant Ministries.

PPIB  SIGNS IMPLEMENTATION AGREEMENT  FOR DEVELOPMENT OF 100 MW GULPUR HYDROPOWER PROJECT

14-April-2014

 

PPIB  SIGNS IMPLEMENTATION AGREEMENT  FOR DEVELOPMENT OF 870 MW HYDROPOWER PROJECT

11-April-2014

Islamabad, 11th April 2014: Private Power and Infrastructure Board (PPIB) signed Implementation Agreement (IA) with S.K Hydro (Pvt) Limited for development of 870 MW  Suki Kinari Hydropower project at an estimated cost of 1.8 billion US dollars to be established in district Mansehra, Khyber Pakhtunkhwa.

 

The signing ceremony was held here today at PPIB and witnessed by the Federal Minister for Water and Power, Khawaja Muhammad Asif, Secretary Water and Power, Saifullah Chattha, senior officers of PPIB and others. MD, PPIB, N. A Zuberi and CEO of SK Hydro, Haseeb Khan, signed the IA on behalf of their respective sides.

 

Addressing on the occasion and talking to media, the Federal Minister for Water and Power Khawaja Asif said that the government is taking all possible steps to generate cheaper electricity from indigenous resources like coal, wind, solar and hydel. He said that Dasu project of 4300 MW is being executed in the public sector and funding for the project has also been arranged. The World Bank is likely to approve 4.5 billion dollars in its meeting scheduled on 29th May for this project. To a question regarding objection by Afghanistan on it, it was told that Afghanistan has withdrawn its objection as the project is located on the river which is 100 % in Pakistani territory. To another question about setting up of two power projects in the public sector, he said that the response of the investors is very encouraging in the Gadani and now the government is considering to establish all the 10 projects of 660 MW each by the private sector. Mr. Asif said that China is keen to set up 20000 MW power projects in Pakistan and after completion of all the projects, there will be no load shedding in the country. He said that due to policies of the government and encouraging response by the international community for Pakistan in the Bond market, the government would not face funding difficulties for construction Bhasha,  Bunji and Thakot projects.

 

The Suki Kinari hydropower project will inject 3081 million clean, reliable and affordable units of electricity each year into the national grid and will be great help in meeting the future electricity requirements. Further, the Government of Khyber Pakhtunkhwa will earn approximately 47 crore per annum on account of water use charges, and after thirty years of operation of the project will be transferred to the Government of Khyber Pakhtunkhwa free of cost.

 

CHINESE GROUP SIGNS MOU WITH PPIB TO SET UP TWO COAL POWER PLANTS OF 1320 MW AT GADAN

09-April-2014


Islamabad, 9th, April 2014: A memorandum of understanding has been signed today in the Ministry of Water & Power between China Machinery Engineering Corporation ( CMEC) and Private Power and Infrastructure Board (PPIB) for setting up of two coal based power plants of 660 MW each at Gaddani (Balochistan at an estimated cost of US 2 billion dollars. Mr. LI KAN General Manager (CMEC) and Mr. N.A. Zuberi, MD PPIB signed the MoU on their respective sides. The signing ceremony was witnessed by Federal Minister for Water and Power Khawaja Muhammad Asif, MoS, Abid Sher Ali, Secretary Water & Power. Other senior officials of the government were also present on the occasion. While talking to the media, the Minister for Water and Power, Khawaja Asif said that the government has signed MoUs with the foreign investors for setting up of 10 power projects of 6600 MW capacity at Gaddani as per plan. He said that upon completion, these projects will prove to be mega achievement of the government for eliminating the menace of load shedding from Pakistan He said that during last one year the foreign investment has increased which shows their confidence on the policies of the present government. Welcoming the CMEC, he paid tribute to China for its assistance for Pakistan and said that Pak-China relations are very strong and China has always assisted Pakistan, and always played a positive role in any crises situation. He told the media that 2250 MW additional electricity will be added in the system within two months. There was no unscheduled load shedding in the country for the last many months. However, 6 to 8 hours load shedding is being carried out in the cities and rural areas. He stressed the need for energy conservation and asked the consumers to pay their bills timely and to counter power theft. He said that government will provide relief to the areas where bills are paid promptly. All those feeders having line losses due to power theft would have to face more load shedding and even their transformers would be removed. To a question, he said that recovery has been increased in the first quarter of 2014 as compared to the same period last year. He also said that PESCO has recovered Rs 1.33 billion in March by controlling power theft.

 

134 MW STAR POWER GENERATION LIMITED GUARANTEE ENCASHED 

24-Mar-2014

Islamabad, 24th, March 2014: The Performance Guarantee (PG) of 134 MW Star Power Generation Limited (SPGL) worth US$ 2.6 million has been encashed by the Private Power and Infrastructure Board (PPIB), Ministry of Water & Power. SPGL was issued Letter of Interest (LOI) in February, 2004 to establish the said power project at an estimated cost of US$ 196 million at Daharki, District Ghotki, Sindh based on low Btu gas from Mari deep reservoir for which the relevant security package agreements i.e. Implementation Agreement (IA), Power Purchase Agreement (PPA) and Gas Supply Agreement (GSA) were signed during 2007-08. The company was required to achieve Financial Close (FC) by 25th October, 2006, however, in spite of number of extensions in the FC date for facilitating the company, SPGL failed to achieve the Financial Close of the project, thereby resulting in encashment of its PG as per terms of the agreement.

This is in line with the present government's pro-active policy of implementing power projects within prescribed time lines and any default which results in loss to the national exchequer/ public funds will not be compromised. 

 

Initialling of WUA with Gulpur Hydropower Project

21-Mar-2014

Islamabad 21st March 2014: With the facilitation of PPIB, Water Use Agreement (WUA) has been executed today between Government of Azad Jammu & Kashmir (GoAJ&K) and Mira Power Limited at PPIB for the 100 MW Gulpur Hydropower Project at Poonch River. The agreement was signed by Mr. Harooq Haider, Managing Director AJ&K Private Power Cell (PPC) on behalf of GoAJ&K and Mr. Yoon Tae Hak, CEO Mira Power Limited on behalf of the company. Managing Director PPIB besides other senior officers of PPIB and GoAJ&K were present on the occasion.

 

TRANSMISSION LINES POLICY FOR PAKISTAN POWER PARK AND ELECTRICITY IMPORT FROM NEIGHBOURING COUNTRIES

20-MAR-2014

PRESS RELEASE

MEETING OF THE COMMITTEE CONSTITUTED TO FORMULATE PRIVATE TRANSMISSION LINES POLICY FOR PAKISTAN POWER PARK AND ELECTRICITY IMPORT FROM NEIGHBOURING COUNTRIES

Islamabad, 20th, March 2014: In order to encourage Private Sector participation in the development/construction of transmission lines, a committee has been constituted to formulate the private transmission lines policy. The meeting of the committee was held today at PPIB under the Secretary Water and Power to discuss and deliberate the draft "Policy Framework for Private Sector Transmission Line Projects". The meeting was attended by Managing Director PPIB and representatives from NEPRA, NTDC, PPPMCL, representatives of all Provinces, AJ&K and GB besides other senior government officials and private members. ENDS

 

STATE GRID CORPORATION OF CHINA INTERESTED IN TRANSMISSION LINE PROJECTS

18-MAR-2014

GOVERNMENT OF PAKISTAN

MINISTRY OF WATER AND POWER

(PRIVATE POWER AND INFRASTRUCTURE BOARD)

 

PRESS RELEASE

 

STATE GRID CORPORATION OF CHINA INTERESTED

IN TRANSMISSION LINE PROJECTS

Islamabad, 18th, March 2014: Federal Minister for Water and Power Khawaja Muhammad Asif has said that due to the investor friendly policies of the government, many national and international players are expressing interest in the power sector of Pakistan in sectors ranging from coal-fired power plants to transmission lines.

The Minister said that these upcoming power plants will require transmission line facilities for transmitting power to the national grid, and the government has decided that transmission lines will also be built by the private sector in IPP mode. For this, procedures are being laid down and Transmission Line Policy will soon be launched after due approval of the Cabinet. In this regard a follow up meeting was held at Private Power and Infrastructure Board (PPIB) with State Grid Corporation of China (SGCC) which is keen to invest in Pakistan to lay high and low voltage transmission lines. The meeting was attended by the high officials of SGCC, Secretary Water and Power, Managing Director NTDC, Managing Director PPIB amongst other officials of Ministry of Water and Power.

SGCC transmits and distributes power in China , and is the largest state-owned electric utilities company in the world. SGCC manages distribution through subsidiaries in Northern China, Northeastern China, Eastern China, Middle China and Northwestern China. It has an annual turnover of US$ 300 billion and serves a customer base of 1.2 billion in China. SGCC also operates the national transmission network of Philippines and some transmission lines in Brazil. ENDS

 
CHINA GEZHOUBA GROUP TO PRODUCE 2640 MW ELECTRICITY
18-MAR-2014

GOVERNMENT OF PAKISTAN

MINISTRY OF WATER AND POWER

(PRIVATE POWER AND INFRASTRUCTURE BOARD)

 

PRESS RELEASE

 

CHINA GEZHOUBA GROUP TO PRODUCE 2640 MW ELECTRICITY

Islamabad, 18th, March 2014: Minister for Water and Power Khawaja Muhammad Asif today witnessed the signing of a memorandum of understanding between China Gezhouba Group Company Limited (CGGC) and the Private Power and Infrastructure Board (PPIB). Managing Director of PPIB Mr. N.A. Zuberi signed the MOU on behalf of the government, while the president of Gezhouba Group Mr. Chen Xiao Hua signed on behalf of the company. The Secretary Water & Power Mr. Saif Ullah Chattha and other senior officials of the government were also present on the occasion. In the MOU signed today, CGGC has expressed interest to install three projects of 660 MW each (1980 MW) based on imported coal at Gadani. Earlier in January this year, the PPIB had signed an MOU with CGGC in Beijing for the development of a 660 MW power plant at Gadani, however the CGGC has shown interest in developing another three plants at Gadani thus totalling 2,640 MW with an investment outlay of 3.5 - 4 billion US Dollars.  

Minister for Water and Power said that, relations between China and Pakistan are of historical importance. He said that during the recent visit of the Prime Minister Mian Muhammad Nawaz Sharif to China, the Chinese leadership have committed to make substantial investments in various sectors of our economy including power sector and Chinese companies are keen to make business ventures in Pakistan, M/s Gezhouba being one of them. He said that the initiative of Power Park at Gadani has sparked a lot of interest of the international as well as local investors community. He also told the press that presently, CGGC is playing a key role in construction of 969 MW         Neelum-Jhelum Hydropower Plant as lead contractor in collaboration with China National Machinery Import and Export Corporation and is also the EPC contractor for the 840 MW Suki Kinari Hydropower Project in the private sector which is expected to achieve financial close by July 2014, however construction of the project is expected to be started within a couple of months.

CGGC has high stakes in large dams in China like the Three Gorges, Shuibuya,    Jinping I, and Longtan Dam, and its business reaches out to over 70 countries in Asia, the Middle East, Africa and America. In 2012, CGGC ranked No. 62 among the top 225 international contractors in the world and 42nd largest contractor by revenue in the world, which is approximately 7500 million US Dollars. ENDS

 
 
1st Evaluation Committee Meeting of KOTLI HPP
11-Mar-2014
The Evaluation Committee reviewing the proposals received for 100MW Kotli HPP under the chairmanship of Mr. N.A Zuberi, MD PPIB

First (1st) meeting of the Evaluation Committee (the "Committee")  to oversee development process of 100 MW Kotli Hydropower Project was held on 11th March 2014 in the Board Room of PPIB. The Committee chaired by Managing Director PPIB includes members from Government of Azad Jammu & Kashmir Council,  AJ&K Private Power Cell, National Transmission and Despatch Company Ltd (NTDC), Ministry of Water & Power and PPIB.

Five sponsors had purchased the Pre-Qualification document for the project to be located on Punch River, AJ&K, after advertisement in the local and international press media. Three proposals namely M/s CWE Investment Corporation, China, M/s Ratchaburi Electricity Generating Holding PCL, Thailand and M/s Sachal Engineering Works (Pvt) Ltd, Pakistan were received by the deadline. The same were opened by the Committee on 4th March 2014 in the presence of the bidders and print/electronic media. Federal Minister for Water and Power Khawaja Mohammad Asif graced the occasion.

In first meeting of the Committee held today,  the modalities and procedure for evaluation of the Proposals received from prospective investors/parties were discussed. The Committee decided to complete the evaluation process within one month.

PRESS RELEASE
PRIME MINISTER WITNESSED MOU SIGNING CERMONY BETWEEN PPIB AND ANC DUBAI FOR COAL POWER GENERATION
5-Mar-2014

Islamabad: March 5, 2014

A MoU was signed between Private Power and Infrastructure Board (PPIB), Ministry of Water & Power & Al-Nakhra Company (ANC) Holding LLC Dubai for construction of two 660 megawatt (1320 MW) coal based power generation plants at Pakistan Power Park in Gadani. The company will also construct a jetty along with the construction of the power projects. The project would bring in approx. US $ 2.5 billion dollars investment in Pakistan and will be completed in three years. The MOU was signed by Mr. Faris Tayeb Abdul Rahim Al-Baker Vice Chairman and CEO of ANC and Mr. N. A. Zuberi MD PPIB. Prime Minister Muhammad Nawaz Sharif and Chairman ANC Mr. Tayeb Abdul Rahim Ahmed Al-Baker witnessed the signing ceremony. Khwaja Muhammad Asif, Minister for Water and Power, Mr Abid Sher Ali, Minister of State for Water and Power, Mr. Saifullah Chattha, Secretary Water and Power and other officials were also present.

          Prime Minister appreciated the power sector investment by the Company in Pakistan and added that it would help Pakistan overcome the energy shortages. Prime Minister said that today we have achieved another milestone in our urge towards energy self-reliance. He stated that the Government of Pakistan has taken bold initiatives to address the energy shortfall and bring prosperity to the economy and people through establishing several short and long term projects, and added that we are offering several incentives for investment in power sector. END.

5-Mar-2014
95th Board Meeting
 

GOVERNMENT OF PAKISTAN

MINISTRY OF WATER AND POWER

(PRIVATE POWER AND INFRASTRUCTURE BOARD)

 PRESS RELEASE

2630 MW  PRIVATE POWER PROJECTS APPROVED

Islamabad, 5th, March 2014: Approval was given to power projects totalling 2630 MW in the  95th meeting of the Board of PPIB held here today under the chairmanship of Federal Minister for Water & Power Khawaja Muhammad Asif.

The Board today approved issuance of Letter of Interest to a consortium of CWE Investment Corporation China and Trans Tech of Pakistan for establishing 590 MW Mahl Hydropower Project, to be located on Jhelum River at dual boundary of Punjab and Azad Jammu and Kashmir. The project has been awarded to the qualifying bidders, through invitation of proposals in the international and local media. The Board further approved the proposal and issuance of Letter of Intent to the Joint Venture of M/s Al Mirqab Capital of Qatar and Sinohydro Resources Ltd of China for the development of 2x660MW power coal fired project at Port Qasim, Karachi.

Minister of Water and Power said that our government is making maximum efforts to counter the nuisance of load shedding for which we are adopting multi-pronged strategies. The government is also prioritizing the use of indigenous resources for power generation. In the meeting today, other private sector hydropower projects were also considered. PPIB was allowed to invite through press, Expressions of Interests for 132 MW Rajhdani Hydropower Project to be located on Poonch River in district Kotli. Nekherdim-Paur and Turtonus-Uzghor hydropower projects of 80 MW and 58 MW respectively in Chitral were also approved to be processed by inviting Expressions of Interest. The Board also approved invitation of proposals through competitive process of 350 MW Athmuqam raw site Hydropower project to be located at river Neelum, AJ&K. The Board was also informed that many foreign and local investors have shown interest in establishing IPPs in the Pakistan Power Park at Gadani. In this regard, standard operating procedures for selection of bidders were submitted to the Board which were duly approved.

In order to improve coordination and fast track implementation of IPPs, the government has decided that PPIB should execute and issue tri-partite Letters of Support (LOS) with concerned entities of the provincial governments/Azad Jammu & Kashmir/Gilgit Baltistan and sponsors as co-signatories, for existing as well as future "private" or "public private partnership" power projects being implemented by these entities. In the meeting today, the Board approved the standardized tri-partite LOS. To encourage participation in developing power projects based on Thar coal, the Board supported amendments in Power Policy 2002, as suggested by the Government of Sindh/TCEB.

Managing Director PPIB explained to the Board that at present 29 IPPs with a total capacity of 8657 MW are operating and providing reliable power at higher level of efficiency and availability. As of today IPPs alone are providing 57% (5900 MW) of power to the national grid while the remaining 43% power is from public sector hydro and GENCOs. He informed the Board that taking cognizance of the policies of the present government, PPIB is focusing to attract investments in the hydropower sector as well. China has shown keen interest in the development of number of hydropower projects in Pakistan which includes 640 MW Karot Hydropower Project at Jhelum River, near Kotli. PPIB is processing a mega hydropower project i.e. Suki Kinari Hydropower Project with a capacity of 840 MW on Kunhar River in Khyber Pakhtunkhwa, PPIB has earlier issued LOS to 100 MW Gulpur Hydropower Project located on Poonch River in AJK, the project is sponsored by Korea South East Power Company (KOSEP), Sambu & Lotte, the 148 MW Patrind Hydropower Project on Kunhar River in AJK is sponsored by K-Water and financed by IFC, ADB, K-Exim Bank, the construction of project is in full swing. Three investors M/s CWE Investment Corporation, China, M/s Ratchaburi Electricity Generating Holding PCL, Thailand and M/s Sachal Engineering Works (Pvt) Ltd, Pakistan have submitted proposals for 100 MW Kotli hydropower project advertised recently; these proposals will now be evaluated by a committee on a fast track basis.

Under the Chairmanship of Khawaja Muhammad Asif, the meeting was attended by Mr. Saif Ullah Chattha, Secretary Water & Power, Mr. Hassan Nawaz Tarar, Secretary Planning & Development Division, Syed Raghib Abbas, Chairman WAPDA, Mr. Amjed Tiwana, Chief FBR, Mrs. Azra Mujtaba, Additional Secretary Ministry of Finance, representatives of Ministry of Petroleum & Natural Resources, four provinces, AJ&K and FATA, private sector members from Punjab, Khyber Pakhtunkhwa and  Gilgit-Baltistan, besides Executives Directors and Directors of PPIB and other senior government officials.

ENDS
4-Mar-2014
 

Government of Pakistan

Ministry of Water and Power

(Private Power and Infrastructure Board)

 PRESS RELEASE

GOVERNMENT IS FOCUSING ON DEVELOPMENT OF HYDROPOWER RESOURCES: KHAWAJA ASIF

CHINESE, THAI AND PAKISTANI COMPANIES SUBMITS PROPOSALS FOR 100 MW KOTLI PROJECT

Islamabad, 04th March 2014

 

Federal Minister for Water and Power, Khawaja Asif has said that the government is focussing on development of hydropower resources to achieve long term vision of the power sector and to overcome its challenges. He said this while addressing the bid opening ceremony of 100 MW Kotli hydropower project, held here today in the Ministry. MOS for water and power  Abid Sher Ali was also present.

The opening of proposals for 100 MW Kotli hydropower project is one of the examples of our interest in improving the hydro-thermal mix in the country, he added. Mr. Asif further said the project will not only provide the clean-affordable and reliable electricity in the national but also provide employment in the area.  "We are optimistic, with the support and cooperation of investors, and the commitment of the government, we will overcome the power crisis in shortest possible time", he said.

The Proposals were invited from prospective investors for development, financing and construction of 100 MW Kotli Hydro Power Project in private sector through national and international print media in December 2013. Initially five companies of Chinese, Thailand and Pakistani origin showed their interest and finally three companies submitted firm proposals.

             The companies submitted their proposals for 100 MW Kotli Hydropower project include M/s CWE Investment Corporation, China, M/s Ratchaburi Electricity Generating Holding PCL, Thailand and M/s Sachal Engineering Works (Pvt) Ltd, Pakistan. These proposals were opened by the Committee constituted by the Board to oversee the development process of the Project in the presence of bidding companies representatives and media. The Committee is being headed by Managing Director PPIB having members from Government of AJK, Azad Jammu and Kashmir Council, Ministry of Water & Power, NTDC and PPIB.

               The proposals will be evaluated in the shortest possible time based on the technical and financial credentials of the applicants. The prequalified applicants will be issued Requests for Proposals (RFP) documents for preparing their bids for next stage.

This run of river project is located on Poonch River in District Kotli is likely to draw millions of dollars of investment. Further, AJK will receive millions of rupees on account of water use charges during the term of project operations. The estimated cost of the project is 170 million US dollars and will be developed on Built-own-operate-Transfer basis and will be handed over to AJK Government after thirty years. ENDS.


 

 

 
 
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