PPIB Board allows execution of IAS, SIAs for power projects on Thar coal

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ISLAMABAD: A meeting of Private Power and Infrastructure Board (PPIB) on Tuesday allowed execution of Implementation Agreements (IAs) and Supplemental to Implementation Agreements (SIAs) with the power generation projects based on Thar Coal.

This decision was taken during a meeting of the Board of Private Power and Infrastructure Board (PPIB) held under the chair Power Division Federal Minister Sardar Awais Ahmed Khan Leghari.

The 111th meeting of the Board while settling multiple matters regarding smooth implementation of power projects has decided to allow execution of Implementation Agreements and Supplemental to Implementation Agreements with the Power Generation Projects based on Thar Coal thus allowing PPIB to sign these agreements for smooth and earliest implementation of their projects. These projects include 1320 MW Thar Block-I Power Generation Co (Shanghai Electric Power Co), 330 MW Thar Energy (HUBCO) Power Project, 330 MW Thal Nova Thar Power Project, 660 MW Lucky Electric Power Co and 330 MW Siddiqsons Energy Limited. The Minister said that all efforts should be made to promote the local coal and any action should not in any way affect or delay the pace of mining at Thar. He said that any temporary arrangement to use imported coal should be well monitored and the plant design should be based on Thar coal specifications for use of indigenous coal.

PPIB Managing Director Shah Jahan Mirza briefed the Board on the power generation and transmission line projects currently being handled by PPIB. The Minister said that PPIB being the one window facilitator for private sector power projects should hold its Board meetings frequently in order to dispose of cases more diligently. He conveyed that the Power Division is considering switching from present upfront tariff regime to competitive bidding regime to add most affordable electricity for the consumers to the national grid. Recommendations in this regard will be placed before the Government for its consideration.

Chairing the 111th meeting of the Board of PPIB, Sardar Awais Ahmed Khan Leghari said that the Government has initiated a third-party evaluation of the electricity demand and supply scenario which is in the final stage and the power division is expected to receive its first report shortly. He said that based on the third party evaluation and other related matters, the government will streamline the approval of new power projects in the country. The minister conveyed this while chairing the 111th meeting of the Board of Private Power and Infrastructure Board (PPIB) held here today.

Sardar Awais Ahmed Khan Leghari also emphasised the uniform policy should be adopted for the issuance of Letter of Intent (LOI) and Letter of Support (LOS) to the potential investors in the power sector in order to ensure transparency. He said that any extensions in project timelines should only be allowed in accordance with the applicable policies.