SIFC seeks information on projects facing delays or stuck in arbitration

The Executive Committee of the Special Investment Facilitation Council (SIFC) is actively seeking information from federal and provincial governments regarding projects facing delays or stuck in arbitration, with the aim of creating a more conducive environment for potential investments.

According to a report by Business Recorder, numerous domestic and foreign investors have been approaching the SIFC Secretariat to seek resolutions to their procedural and regulatory concerns.

To streamline this process, the SIFC has distributed a form to all Ministries and Divisions which includes key details such as the project’s name, sector, current stage, location, specific issues, contact information for the focal person, the latest measures taken, and any recommendations.

It has come to light that more than 100 wind and solar (renewable energy) power projects have experienced significant delays. These projects have now reached the SIFC Secretariat due to the Power Division’s hesitation to accept numerous renewable energy projects.

In Punjab, there are wind projects totaling 100 MW and solar PV projects of 1,010 MW, with one wind and seven solar projects having received Letters of Intent (LoI) and land allocation within IRZs. Sindh has 490 MW of wind projects and 590 MW of solar projects, with 21 and 4 solar LoIs respectively. KPK has 250 MW of solar projects with four LoIs, and Balochistan has 1,190 MW of wind projects and 2,500 MW of solar projects.

The Power Division has also shared a list of 100 renewable energy projects that are experiencing delays due to bureaucratic obstacles.

On a different note, the Korea South-East Power Company (KOEN) has accused the National Electric Power Regulatory (Nepra) of delays in determining the feasibility stage tariff for its two hydel power projects in Khyber Pakhtunkhwa. KOEN has requested SIFC’s intervention to expedite the process and resolve the case in order to facilitate the timely commencement of these projects.

KOEN is a Korean state-owned company and a subsidiary of Korea Electric Power Corporation (KEPCO). The company boasts an impressive 83,000-MW generation capacity worldwide and an asset base of $175 billion.

The Ministry of Foreign Affairs (MoFA) has shared a letter from the Korean company with relevant authorities. In the letter, KOEN stated that after successfully completing the 102-MW Gulpur Hydropower Project, it initiated two 100% Foreign Direct Investment (FDI) projects. The investment was formalized in May 2017 through an MoU between the KPK government and KOEN, following bankable feasibility studies and obtaining various approvals.

Despite securing approvals from multiple departments, including KP EPA, IRSA, Forest, and a general license from Nepra, KOEN has faced delays in Nepra’s tariff determination process. These delays are not only causing financial losses but also hindering the projects’ timely initiation.

CEO KA Power Limited noted that these projects will attract essential foreign direct investment in the short term while addressing the country’s energy needs and stabilizing the national grid in the long term.