PPIB, AJK sign deal to set up micro-hydropower projects

A tripartite LoS will be issued to project sponsors who will be facilitated by PPIB

ISLAMABAD: The Private Power Infrastructure Board (PPIB) and the government of Azad Jammu & Kashmir have signed a facilitation agreement for cooperation and facilitation in setting up private hydropower projects of under 50MW and related infrastructure.

The ceremony, held Friday, was signed by PPIB MD Shah Jahan Mirza and government of Azad Jammu & Kashmir Secretary (Electricity/PDO) Malik Israr Ahmed.

Through this arrangement, a tripartite Letter of support (LoS) will be issued to the projects sponsors/companies and PPIB will facilitate them in establishing of private power projects and related infrastructure under the provisions of power generation Policy 2015.

This initiative will attract and encourage potential investors in developing small to medium sized hydropower projects in AJK, which will further augment generation capabilities.

The PPIB is already processing 11 medium to large-sized hydropower projects in AJK with a cumulative capacity of 4,739MW out of which three projects of 969MW are under construction after achievement of financial close. Two projects of 1,764MW are expected to achieve financial closing soon and others are at different stages and moving forward satisfactorily.

It is pertinent to mention that the first hydro IPP namely New Bong Escape Hydropower Project, which is located in AJK, is already commissioned and generating 84MW to the national grid.

Published in The Express Tribune, September 9^th, 2017.

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