Islamabad: 11 February 2020: In order to diversify the energy-mix of
country, the Government of Pakistan (GoP) is encouraging development of
hydro potential to produce clean, green and affordable electricity. These
efforts further supplemented by signing two Agreements today between the
Government of Pakistan, the Agence Française De
Développement (AFD), France and the Private Power and
Infrastructure Board (PPIB). The Financing Agreement was signed between
Economic Affairs Division (EAD) and AFD while the Project Agreement signed
between Private Power and Infrastructure Board (PPIB) and AFD. From EAD side
Dr. Syed Pervaiz Abbas, Secretary while from PPIB Mr. Shah Jahan Mirza
Managing Director signed the documents respectively while from AFD, Mr.
Philippe Steinmetz, Director AFD Pakistan signed both Financing and Project
Agreements. The signings were witnessed by high officials of EAD, PPIB and
AFD. The Honorable Ambassador of France to Pakistan His Excellency Mr. Marc
Baréty witnessed the ceremony and co-signed the Financing Agreement.
Under the agreement, AFD will provide grant of 500,000€
to PPIB for improvement of expertise and for implementation of hydropower
projects more efficiently. The agreed areas of support for technical
assistance include preparation of mechanism for tariff based bidding for
hydropower projects, hiring of consultant to assist Panel of Experts (POE)
on review of Feasibility Study for hydropower projects and capacity building
of PPIB employees.
It operates in a number of sectors (energy, health,
biodiversity, water, urban planning, training) and offers a wide range of
financial and non-financial services. Through its network of 85 agencies,
AFD operates in 108 countries, where it is currently financing, monitoring
and supporting over 2,500 development projects.
PPIB is a frontline institution of the GoP providing one
window facilitation for promoting indigenous coal, and renewable hydro
potential for power generation. Currently a diversified portfolio of
seventeen (17) hydro IPPs of 6,550 MW and seven (7) Thar coal based IPPs of
4,950 MW is under process by PPIB, of which majority of projects are at
advance stages of LOS and above. PPIB has successfully materialized first
ever hydro and Thar coal based IPPs in the country while first ever private
sector transmission line will also be getting ready by March 2021.
Mr. Shah Jahan Mirza appreciated AFD for taking keen
interest in the hydropower sector of Pakistan and said that such efforts
will produce fruitful results for the sake of attaining reliability and
sustainability in the power sector. He invited AFD to work together for
developing Pakistan’s Power Sector on robust and solid footings.