ISLAMABAD, 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.




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