PRIVATE POWER & INFRASTRUCTURE BOARD

 

GOVERNMENT OF PAKISTAN

MINISTRY OF WATER & POWER

   
  CURRENT POWER POLICIES/GUIDELINES
     

 

PROCEDURES FOR DEVELOPMENT OF PRIVATE POWER PROJECTS UNDER UPFRONT TARIFF REGIME

On 6th June 2013, NEPRA announced Upfront Tariff for local / imported coal based power projects. In order to facilitate the project sponsors, PPIB Board in its 93rd meeting approved the procedures for development of private power projects under Upfront Tariff regime. It was decided that projects whose sponsors are interested to opt the Upfront Tariff devised by NEPRA shall be processed as per the 'Guidelines for Setting up of Private Power Projects under Short-Term Capacity Addition Initiative August - 2010' (the 'Guidelines'), mutatis mutandis, read with NEPRA Upfront Tariff (Approval and Procedure) Regulations 2011.

 

The sequence of activities to process the projects as given in the Guidelines is reproduced below:

 

  •           Registration with PPIB by depositing US$ 200 along with a request letter;

  •           Submission of proposal to PPIB as per given guidelines, along with Proposal Processing Fee of US$ 20,000;

  •           Examination of proposal and evaluation of credentials of the sponsors by PPIB;

  •           Approval by PPIB Board;

  •          Submission of Performance Guarantee (PG) @ US$ 1,000 per MW by Sponsors / project company to PPIB for Issuance of Letter of Intent (LOI), which would be encashable in case the sponsors fail to approach NEPRA for tariff determination within three (03) months from issuance of Notice to Proceed by PPIB or fails to obtain LOS thereafter;

  •            Submission of tariff petition and application for Generation License to NEPRA by the sponsors;

  •            Tariff Determination and issuance of Generation License by NEPRA;

  •           Submission of PG @ US$ 5,000 per MW with validity of three months in excess of committed COD along with Processing Fee (US$ 80,000) to PPIB by the sponsors;

  •           Issuance of Letter of Support (LOS) by PPIB, after acceptance of PG by PPIB;

  •           Negotiations / Finalization of project agreements (IA, PPA, FSA, CSA);

  •           Achievement of Financial Close within nine (9) months from issuance of LOS (PPIB Board has recommended for ECC approval to increase Financial Closing period upto eighteen (18) months and construction period upto forty-eight (48) months for coal based power projects);

  •           Commencement of Construction activities;

  •          Achievement of Commercial Operation Date (COD) within the deadline stipulated in the LOS /IA /PPA.

 The flow chart for processing private power projects under Upfront Tariff Regime is given below:

 

 

 
     
 
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