Coal power project’s financial close extended
Project of 1,320MW is being developed under CPEC programme
A coal plant. PHOTO: AFP
ISLAMABAD:
The Private Power and Infrastructure Board (PPIB) on Thursday allowed extension in the financial close of 1,320-megawatt Thar coal-based power project being developed under the China-Pakistan Economic Corridor (CPEC).
The board, in its 126th meeting chaired by Minister for Power Omar Ayub Khan, also approved execution of the implementation agreement with Pakistan’s largest Thar coal-based power project.
The 1,320MW project of Thar Coal Block-I Power Generation Company (Private) Limited holds significant importance among CPEC projects. The project is at an advanced stage of development as critical milestones, which include the issuance of Letter of Support and signing of the power purchase agreement, have already been achieved.
The project is likely to start power generation by March 2021. The National Electric Power Regulatory Authority (Nepra) has set a tariff of Rs8.0924 per unit. The project will be connected with the Matiari-Lahore transmission line, which is currently being laid and is scheduled to start transmitting electricity by March 2021.
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The power minister stated that the government was bringing a revolution in the power sector to make it efficient, sustainable, secure, affordable and competitive. “The government is promoting hydroelectric and coal power projects along with wind and solar energy for bringing down the tariff. For that purpose, maximum facilitation is being provided to the investors within legal bounds,” he said.
The minister pointed out that the government was focused on removing bottlenecks and improving the ease of doing business to encourage investors to initiate new projects and expand operations in Pakistan.
PPIB Managing Director Shah Jahan Mirza briefed the board that the PPIB had started issuing Letters of Support under the Tripartite Letter of Support regime of Power Generation Policy 2015 and issued letters for 7.08MW Riali and 8MW Kathai hydroelectric power projects within a short period of one month.
Nepra hikes power tariff by Rs1.8 per unit
“It demonstrates the PPIB’s aggressive approach towards harnessing the hydroelectric power potential,” he said. Tariff for these projects has been fixed by Nepra at Rs8.1811 and Rs8.0868 per unit respectively.
He also pointed out that 700MW Azad Pattan hydroelectric power project had recently been included in CPEC, which would lead to an acceleration of work on the project for its completion by June 2026. Nepra has already determined the tariff of Rs7.4064 per unit for the project.
The board was apprised that the PPIB was already processing Pakistan’s first private-sector Matiari-Lahore transmission line project and would be able to facilitate future transmission line projects in the private sector under the Transmission Line Policy 2015.
Published in The Express Tribune, November 22nd, 2019.
The Private Power and Infrastructure Board (PPIB) on Thursday allowed extension in the financial close of 1,320-megawatt Thar coal-based power project being developed under the China-Pakistan Economic Corridor (CPEC).
The board, in its 126th meeting chaired by Minister for Power Omar Ayub Khan, also approved execution of the implementation agreement with Pakistan’s largest Thar coal-based power project.
The 1,320MW project of Thar Coal Block-I Power Generation Company (Private) Limited holds significant importance among CPEC projects. The project is at an advanced stage of development as critical milestones, which include the issuance of Letter of Support and signing of the power purchase agreement, have already been achieved.
The project is likely to start power generation by March 2021. The National Electric Power Regulatory Authority (Nepra) has set a tariff of Rs8.0924 per unit. The project will be connected with the Matiari-Lahore transmission line, which is currently being laid and is scheduled to start transmitting electricity by March 2021.
China adds coal power despite climate pledge: report
The power minister stated that the government was bringing a revolution in the power sector to make it efficient, sustainable, secure, affordable and competitive. “The government is promoting hydroelectric and coal power projects along with wind and solar energy for bringing down the tariff. For that purpose, maximum facilitation is being provided to the investors within legal bounds,” he said.
The minister pointed out that the government was focused on removing bottlenecks and improving the ease of doing business to encourage investors to initiate new projects and expand operations in Pakistan.
PPIB Managing Director Shah Jahan Mirza briefed the board that the PPIB had started issuing Letters of Support under the Tripartite Letter of Support regime of Power Generation Policy 2015 and issued letters for 7.08MW Riali and 8MW Kathai hydroelectric power projects within a short period of one month.
Nepra hikes power tariff by Rs1.8 per unit
“It demonstrates the PPIB’s aggressive approach towards harnessing the hydroelectric power potential,” he said. Tariff for these projects has been fixed by Nepra at Rs8.1811 and Rs8.0868 per unit respectively.
He also pointed out that 700MW Azad Pattan hydroelectric power project had recently been included in CPEC, which would lead to an acceleration of work on the project for its completion by June 2026. Nepra has already determined the tariff of Rs7.4064 per unit for the project.
The board was apprised that the PPIB was already processing Pakistan’s first private-sector Matiari-Lahore transmission line project and would be able to facilitate future transmission line projects in the private sector under the Transmission Line Policy 2015.
Published in The Express Tribune, November 22nd, 2019.