The 3^rd International Conference on Hydropower Pakistan-2023 organized by Energy Update in collaboration with Private Power Infrastructure Board (PPIB) and International Hydropower Association (IHA) was held in Serena Hotel, Islamabad on 20^th December 2023. The conference was graced by Minister for Energy, Mr. Muhammad Ali, Managing Director PPIB, Mr. Shah Jahan Mirza, large number of dignitaries from public and private sector, key stakeholders and power/energy sector experts.

Honorable Minister for Energy in his address acknowledged the efforts of Energy Update towards development of hydropower in the country and congratulated Mr. Naeem Qureshi, for organizing 3^rd consecutive conference on hydropower. The Minister while signifying the importance of hydropower being renewable, green and cheap source of power generation, reiterated GoP’s determination to do more in this sector with the combined efforts of public and private sector. He said that enhancing Renewable Energy and hydropower share in the energy mix is the top priority of the GoP as it is the only way to reduce the power tariff besides provision of affordable electricity to the people.

While addressing the participants, Managing Director PPIB Mr. Shah Jahan Mirza stated that out of the identified hydropower potential of 64000 MW in the country, only 11000 MW have been achieved so far which accounts for 24% of the overall national generation capacity of 45000 MW. He said that for maximum exploitation of identified potential, GoP is targeting to maximize reliance on indigenous and renewable resources whereby hydel, wind, solar and bagasse based energy will increase from 31% to 60% by 2031. This development will also help in curtailing reliance on imported fuels, reducing carbon emissions and savings of precious foreign exchange. Mr. Mirza in his concluding remarks stated that PPIB being one window facilitator has been working to encourage indigenous and renewable resources for power generation in accordance with the targets set-forth in the National Electricity Policy and UN’s SGDs and COP.

Islamabad, December 13, 2023: Private Power and Infrastructure Board (PPIB) today announced Financial Closing of country’s largest Thar coal-fired Power Project by M/s Shanghai Electric Corporation, China. The signing ceremony was held in the office of PPIB which was graced by Mr. Shah Jahan Mirza, Managing Director, PPIB, Mr. Meng Donghai, Chief Executive of the Project Company i.e. Thar Coal Block-1 Power Generation Company and Mr. Zhou Bo, Chief Executive Officer of Industrial and Commercial Bank of China (ICBC), Karachi Branch. Other high-level officials of PPIB and Project Company/Sponsors were also present.

Having the generation capacity of 1320 MW, Shanghai project has been implemented under the China-Pakistan Economic Corridor (CPEC). It is commendable that in order to meet stringent timelines agreed by the Government of Pakistan and Government of China, the Project Company commenced construction work in a crunch situation of COVID-19 by leveraging its equity and bridge financing and completed the project on 5^th February 2023.

Shanghai Electric Group Corporation are the sponsors of the Project, while Sino Sindh Resources Limited (SSRL) is the coal supplier from Thar Block-1 whereas Industrial and Commercial Bank of China (ICBC), China Development Bank, Bank of Communications Co. Ltd., China Minsheng Bank Corporation, Postal Savings Bank of China Co., Ltd., and Agriculture Bank of China are the lenders of Project while Sinosure is the insurer of the project.

The plant is based on state of the art Super Critical Technology and is equipped with latest equipment to fulfill environmental obligations and fully compliant with the World Bank/IFC and Pakistan EPA standards. This project is the second cheapest power project from the fuel cost point of view (i.e. Rs. 4.98/kWh). By its operation, the GoP saves precious foreign exchange of around US 500 million Dollars annually.  Further, this project significantly contributed in reducing the overall basket price of electricity which may be translated to around Rs. 200 billion annually while expected to generate 9 billion units of electricity per year.

With the induction of Shanghai, the total installed capacity of five commissioned Thar coal based power projects has reached to 3300 MW which is an evidence of PPIB’s commitment towards promoting indigenous fuel based power generation. While expressing his views, Mr. Shah Jahan Mirza lauded the important role of CPEC for development of Pakistan’s power sector and reiterated his resolve for timely completion of other ongoing hydro, wind and solar projects under the CPEC arrangement.