27th February 2019: First ever HVDC Transmission Line Project of Pakistan,
which will be 878 kilometers long from Matiari to Lahore has achieved
Financial Close. This was announced today at a signing ceremony held at the
Power Division, graced by the Federal Minister Power Division Mr. Omar Ayub
Khan. The documents were signed by Mr. Shah Jahan Mirza, Managing Director,
PPIB and Mr. Wang Bo, Chief Executive Officer of the company, with senior
officers from PPIB and the Power Division present at the occasion.
This High Voltage Direct Current
(HVDC) transmission line project is being developed under the framework of
China-Pakistan Economic Corridor (CPEC) Agreement, and is another landmark
achievement, which has surfaced as a result of the efforts and facilitation
of Private Power and Infrastructure Board (PPIB), Power Division, NTDC and
other stakeholders. It is not only the first ever HVDC transmission line
project in Pakistan, but also the first private sector transmission lines
project facilitated by PPIB under the GoP's
Policy Framework for Private Sector Transmission Line Projects 2015
(Transmission Line Policy 2015).
China Electric Power Equipment &
Technology Co. Ltd, (CET) which is subsidiary of State Grid of Corporation
of China (SGCC) is the Main Sponsor of the Project, which is responsible for
execution of the Project through formation of a Special Purpose Company,
i.e. Pak Matiari-Lahore Transmission Company (Pvt.) Ltd. (PMLTC). Spread
over 878km, the capability of this transmission line will be 4000 MW at ±660
kV voltage. The Project is designed to have bi-pole HVDC technology, having
two converter stations, one each at the ends of Matiari (Interior Sindh) and
Lahore, three repeater stations and two grounding electrode stations.
PPIB issued Letter of Support (LOS)
for the Project to PMLTC on 4th August 2017 and National Electric Power
Regulatory Authority (NEPRA) granted Special Purpose Transmission License to
PMLTC for the Project on 18th February 2018.
The Project Agreements i.e.
Implementation Agreement (IA), Transmission Services Agreement (TSA), Land
Lease and Right of Way Agreement (LLA), Implementation Agreement and
Guarantee Direct Agreement (DIA), TSA Direct Agreement (TSADA) etc. have
already been signed by the respective entities. The Project entails an
investment of US$ 1.658 Billion. After fulfilling mandatory prerequisites
and completion of all financing arrangements, the Project has successfully
achieved Financial Close. The Project which is scheduled to achieve
Commercial Operations by March 2021, would be executed on
Build-Own-Operate-Transfer (BOOT) basis, and will be transferred to NTDC
after a term of 25 Years. This transmission facility will primarily be
utilized to transmit power generated from indigenous Thar coal based power
generation projects, thus enhancing the share of indigenous fuel based
generation and saving significant amount of foreign exchange.
With the medium and long terms plans
of power induction into the national grid, it is important that the power
transmission infrastructure is made available to transport the electricity
from the power generation facilities to the load centres. PPIB is playing
vital role in private sector resource mobilization for large power
generation and transmission infrastructure projects, and Matiari-Lahore HVDC
transmission project is one such example. It is anticipated that this
Project will further pave the way for implementation of future transmission
line projects through private sector.
In addition to this HVDC project,
PPIB is currently facilitating implementation of power projects having
cumulative capacity of 10,934 MW under CPEC Agreement, which include various
hydel and coal based projects.