Work on Thar coal-power projects to start early

PPIB agrees to sign implementation agreements with project sponsors

The government had initiated third-party evaluation of the electricity demand and supply scenario, which was in final stages and the Power Division was expected to receive its first report shortly. PHOTO: FILE

ISLAMABAD:
The Private Power and Infrastructure Board (PPIB) has agreed to sign implementation agreements with sponsors of Thar coal-fired power projects, having 2,970-megawatt generation capacity, in a step that will lead to smooth and early development work.

The board of PPIB, in a meeting on Tuesday chaired by Federal Minister for Power Division Sardar Awais Ahmed Khan Leghari, settled scores of issues to streamline the execution of power projects.

The local coal-based power projects with which implementation agreements will be inked include 1,320MW Thar Block-I Power Generation Co (Shanghai Electric Power Company), 330MW Thar Energy (Hubco) Power Project, 330MW Thal Nova Thar Power Project, 660MW Lucky Electric Power Co and 330MW Siddiqsons Energy Limited.

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Speaking during the meeting, Leghari pointed out that the government had initiated third-party evaluation of the electricity demand and supply scenario, which was in final stages and the Power Division was expected to receive its first report shortly.

Based on the third-party evaluation and other related matters, he said, the government would streamline the approval of new power projects.

He emphasised that all efforts should be made to promote local coal consumption and any action should not in any way affect or delay the pace of coal-mining in Thar.


He suggested that any temporary arrangement to use imported coal should be carefully monitored and the plant design should be based on Thar coal specifications for the consumption of domestically produced coal.

Leghari underscored the need for adopting a uniform policy for issuing the Letter of Intent and Letter of Support to potential investors in the power sector in order to ensure transparency. “Any extension in project timelines should only be allowed in accordance with applicable policies,” he said.

He proposed that PPIB being the one-window facilitator for private power projects should hold its board meetings frequently in order to dispose of cases more diligently.

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He noted that the Power Division was considering switching from the present upfront tariff regime to a competitive bidding regime in an attempt to add the most affordable electricity to the national grid. Recommendations in this regard will be placed before the government for its consideration.

PPIB Managing Director Shah Jahan Mirza briefed the meeting on the power generation and transmission line projects currently being handled by the PPIB.

Published in The Express Tribune, November 1st, 2017.

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