GOVERNMENT OF PAKISTAN

            MINISTRY OF WATER AND POWER

              (PRIVATE POWER AND INFRASTRUCTURE BOARD)

 PRESS RELEASE

2,400 MW BY END 2010 

Islamabad 5th, July 2010: The national grid will have another 1,200 MW by end of this year, thus totaling around 2,465 MW through IPPs under the 2002 Power Policy. This was stated by the Minister for Water & Power Raja Pervez Ashraf while chairing the 85^th meeting of the Board of Private Power and Infrastructure Board held here today. He said that seven projects of 1,265 MW which include a 62 MW rental power project have already been commissioned within a short period of around one year, while another 1,200 MW will be added into the national grid by private sector by end of this year, thus reducing the power supply-demand gap. The meeting was attended by the Secretary Water and Power Mr. Shahid Rafi, Member FBR Mr. Zafar ul Majeed, Additional Secretary Ministry of Petroleum and Natural Resources Mr. Muhammad Ijaz Chaudhry, Chief (Energy) Planning Commission Mr. Arshad Maqsood Malik, Managing Director PPIB Mr. N. A. Zuberi, besides other senior government officials. 

The Minister said, today, Pakistan, like many other countries in the world is facing energy shortages, which is causing pressure on our economy and society. We believe that crisis also brings opportunities in its folds, and the decisions taken in the recent Energy Summit chaired by the Prime Minister Syed Yousaf Raza Gillani has given encouragement to the private sector for expediting the commissioning of their projects. The Minister lauded efforts of PPIB for playing a pivotal role for bringing in investment in the private sector and appreciated its new initiatives which include launch of ICB for a 300 MW IPP based on RFO which will be located near Lalian Town, Chiniot, and another ICB for a 300 MW IPP to be located at Sonda Jherruk, Sindh based on imported Coal which is in final stages of launching. The representative of SHYDO briefed the Board that feasibility studies on small hydro power projects are in progress in the area of Khyber Pakhtunkhwa and around 2,000 MW are expected to come online within the next 7 to 8 years. Today issuance of LOI to 1,000 MW Thar Coal based power project was also approved, which is being undertaken by Engro Power Generation Limited (EPGL). The Sindh Engro Coal Mining Company a sister concern of EPGL is already a joint venture partner with Government of Sindh (GOS) for development of coal mine at Thar.  

Raja Pervez Ashraf said that we believe in the policy of facilitating the investors, and wish to join hands with the private entrepreneurs, our attitude is positive and responsive to the investors, and we wish to facilitate them and provide them every cooperation for development of power sector in Pakistan. He further added that in order to make electricity affordable, an energy mix is utmost necessary, and therefore we are stressing on the use of indigenous resource like hydropower and our local coal at Thar, as well as imported coal.