Private sector to implement the disputed Mahl Dam
Punjab, AJK governments were at loggerheads over the project’s boundaries.
PPIB had undertaken 15 hydropower projects with a generation capacity of 6,500MW across Pakistan, some of which have reached completion. PHOTO: FILE
ISLAMABAD:
The government will offer the private sector the chance to build the 590 megawatts (MW) Mahl hydropower project as the provincial governments of Punjab and Azad Jammu and Kashmir (AJK) have been unable to settle a dispute over a the project’s boundaries.
The project is partly located in Punjab and in AJK, and both the governments wanted the right to implement the project.
In its meeting on Wednesday, the Private Power and Infrastructure Board (PPIB) decided that the private sector will implement the project, after taking the Punjab and the AJK governments into confidence.
According to a statement issued, to facilitate and cut the processing time for independent power producers to secure financing, the PPIB approved the execution of direct agreement via PPIB with the working capital lenders.
“Our government at the end of its tenure will pass on a much better electricity situation to the next government than what it inherited from the preceding regime. During our five-year term, we have taken important decisions for new projects and made the procedures simpler and investor-friendly,” remarked Federal Minister for Water and Power Chaudhry Ahmed Mukhtar, while chairing the 93rd meeting of the PPIB.
He further went on to say that serious work had kicked off for generating power through bagasse, wind and hydropower to increase Pakistan’ reliance on cheaper alternative power sources in the future.
PPIB Managing Director highlighted PPIB’s initiatives to tackle the prevailing energy crisis in the country. He said that with reference to indigenous resources, PPIB had undertaken 15 hydropower projects with a generation capacity of 6,500MW across Pakistan, some of which have reached completion.
Important decisions were made in relation to the hydropower projects during the meeting. The Water and Development Authority will soon start feasibility research on development of the 7,100MW-Bunji Dam’s infrastructure like transmission lines, access roads, land acquisition etcetera.
Furthermore, to encourage development of coal-based plants for power generation, the board approved procedures for development of private power projects under an upfront tariff. The tariff mechanism will standardise and reduce the approval time once the National Electric Power Regulatory Authority (Nepra) announces tariff for coal-based projects.
In his concluding remarks, the power minster appreciated the PPIB for its relentless efforts to bring in power from the private sector and remarked that 2,530 MW have been added to the national grid in the last five years.
Published in The Express Tribune, March 14th, 2013.
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The government will offer the private sector the chance to build the 590 megawatts (MW) Mahl hydropower project as the provincial governments of Punjab and Azad Jammu and Kashmir (AJK) have been unable to settle a dispute over a the project’s boundaries.
The project is partly located in Punjab and in AJK, and both the governments wanted the right to implement the project.
In its meeting on Wednesday, the Private Power and Infrastructure Board (PPIB) decided that the private sector will implement the project, after taking the Punjab and the AJK governments into confidence.
According to a statement issued, to facilitate and cut the processing time for independent power producers to secure financing, the PPIB approved the execution of direct agreement via PPIB with the working capital lenders.
“Our government at the end of its tenure will pass on a much better electricity situation to the next government than what it inherited from the preceding regime. During our five-year term, we have taken important decisions for new projects and made the procedures simpler and investor-friendly,” remarked Federal Minister for Water and Power Chaudhry Ahmed Mukhtar, while chairing the 93rd meeting of the PPIB.
He further went on to say that serious work had kicked off for generating power through bagasse, wind and hydropower to increase Pakistan’ reliance on cheaper alternative power sources in the future.
PPIB Managing Director highlighted PPIB’s initiatives to tackle the prevailing energy crisis in the country. He said that with reference to indigenous resources, PPIB had undertaken 15 hydropower projects with a generation capacity of 6,500MW across Pakistan, some of which have reached completion.
Important decisions were made in relation to the hydropower projects during the meeting. The Water and Development Authority will soon start feasibility research on development of the 7,100MW-Bunji Dam’s infrastructure like transmission lines, access roads, land acquisition etcetera.
Furthermore, to encourage development of coal-based plants for power generation, the board approved procedures for development of private power projects under an upfront tariff. The tariff mechanism will standardise and reduce the approval time once the National Electric Power Regulatory Authority (Nepra) announces tariff for coal-based projects.
In his concluding remarks, the power minster appreciated the PPIB for its relentless efforts to bring in power from the private sector and remarked that 2,530 MW have been added to the national grid in the last five years.
Published in The Express Tribune, March 14th, 2013.
Like Business on Facebook to stay informed and join in the conversation.