ISLAMABAD: The government on Tuesday gave the nod to three more power projects by the private sector, with a cumulative capacity of 880 megawatts.
The projects, including two coal-fired power projects of 330MW each in Thar, involve private investment of around $800 million.
The decision was taken at a meeting of the board of directors of the Private Power and Infrastructure Board (PPIB) presided over by Minister for Water and Power Khawaja Mohammad Asif.
A senior PPIB official told News the board decided to issue letters of interest (LoIs) to the two companies — Hub Power Company (Hubco) and Thal Power Company — to enable them to apply for upfront tariff already announced by the National Electric Power Regulatory Authority (Nepra) for separate projects of 330MW each.
Under Nepra’s upfront tariff regime for coal-based power projects, investors can apply for unconditional acceptance of upfront tariff to move forward on completion of legal, financial and physical activities for setting up a plant.
The upfront tariff regime offered a rate of 8.178 US cents per unit for plants of about 350MW capacity based on local coal, foreign financing and 85 per cent plant factor. The plants having 60pc plant factor, foreign funding and local coal are promised 9.969 cents per unit tariff for 30 years.
Similarly, power plants of around 350MW generation capacity with local financing and coal, and 85pc plant factor could avail upfront tariff of about 9.259 cents per unit for 30 years. Similar specifications of plant with 60pc plant factor are entitled to 11.25 cents per unit upfront tariff.
A PPIB statement said Hubco and Thal will build 330MW power project each at Block-II of Thar. Thal power is a joint venture of House of Habib, Novatex and Descon Engineering.
While presiding over the PPIB meeting, the power minister said the country’s immediate power requirements were being catered for through a mix of fuels — both imported and local. However, medium- to long-term requirements would be met through indigenous resources like hydropower, local coal, wind, solar, etc.
“Thar coal can be highly instrumental in injecting a large chunk of megawatts into the system through cheap electricity generation,” the minister said, adding that the district’s 175 billion tonnes of reserves were attracting a large number of domestic and foreign investors who were keen in setting up power plants.
The board also appreciated the achievement of the financial close of a 660MW project by Engro Powergen last month. It was informed that the company had now started construction activities.
PPIB Managing Director Shah Jahan Mirza briefed the board on the current status of various ongoing power generation projects being handled by the PPIB, with particular emphasis on projects under the China-Pakistan Economic Corridor (CPEC). He said a total of 11,000MW capacity was in various stages of implementation.
LNG-BASED FAST-TRACK PROJECT: Mr Mirza also told the board that after the mode of international competitive bidding, Atlas Power Ltd was considered qualified to develop a 220MW re-gasified liquefied natural gas (RLNG)-based independent power producer (IPP) at Sheikhupura, Punjab.
The board approved the submission of the proposal of Atlas Power to Nepra for further processing.
The PPIB welcomed the contribution of private companies in developing Pakistan’s power sector and pledged to remain focused on tackling electricity crisis with affordable means.
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