Islamabad 17, July 2020

PPIB ADVANCING DEVELOPMENT OF SMALL HYDROPOWER PROJECTS

Islamabad: 17th July 2020: PPIB is focussing on developing small hydropower projects (SHPPs) after delivering various success stories in materializing of larger hydropower projects as well as other technologies. This corresponds with the resolve of the government to concentrate on clean, green and affordable energy. This was stated by Managing Director PPIB Shah Jahan Mirza while chairing a meeting attended by all key players of the federal and provincial/AJ&K governments including Central Power Purchasing Agency Guarantee Limited (CPPA-G), National Transmission and despatch Company (NTDC), relevant Distribution Companies (LESCO, FESCO, GEPCO, and PESCO), Pakhtunkhwa Energy Development Board (PEDO), AJ&K Private Power Cell (AJK-PPC), Punjab Power Development Board (PPDB) alongwith the sponsors of various SHPPs. The main agenda of the meeting was to review the progress of Small Hydropower Projects (SHPPs) being developed in Pakistan/AJ&K through provincial/AJ&K governments with private sector financing and devise mechanism to remove any bottlenecks and delays.

Previously a major breakthrough was achieved at the end of last year for the long stalled SHPPs when PPIB Board which is chaired by the Federal Minister for Power Omar Ayub Khan approved a transparent mechanism for processing of these projects and issuance of Letters of Support by PPIB with the consensus of CPPA, NTDC and Provincial/AJ&K representatives. Accordingly, PPIB has issued Letters of Support (LOS) to first two projects in AJ&K namely 7.05 MW Riali-II and 8.0 Kathai. Both these projects are under financial closing phase and progressing satisfactorily, which is a good beginning for harnessing of hydropower potential at smaller sites. Other SHPPs were discussed with the relevant project sponsors to enquire of any bottlenecks being faced by them so that they could be immediately resolved. As a process, the sponsors have to fulfil certain pre-requisites at CPPA-G, DISCOs, NTDC and NEPRA levels before issuance of Letter of Support by PPIB. However, the sponsors reported that there are some issues in processing of proposals before reaching to PPIB. These issues were discussed threadbare and need was felt for the DISCOs, NTDC and CPPAG to streamline their processes for expeditious approvals. The representatives of CPPA-G, NTDC and various DISCOs assured to extend their full cooperation and disposal of the cases of sponsors of SHPPs in timely manner. MD PPIB stated that all the processes at PPIB are fully streamlined and PPIB processes all project proposals without any delays.

Shah Jahan Mirza said that PPIB, being a one stop organization for facilitating investments in power sector, is currently handling a portfolio of 12476 MW, out of which hydropower projects are of around 6500MW, with the largest being 1124 MW. From these hydropower projects, 3 projects of 333 MW are already commissioned while 2 projects of 1504 MW are under construction and 2 projects of 1824 MW are under Financial Closing. The progress being made in development of SHPPs which will be upto 50MW will help in facilitating the local and small investors while contribute in the economic development of remote areas. Further, these projects will be connected in DISCOs network thus saving huge cost on construction of long transmission lines.