Islamabad, March 07, 2024: A comprehensive workshop aimed at developing a robust mechanism for tariff-based bidding of hydropower projects in Pakistan was arranged by Private Power and Infrastructure Board (PPIB) in collaboration with the Agence Française de Développement (AFD), France today in Islamabad. One of the key highlights of the event was sharing draft generic Request for Proposals (RFP) documents for hydropower IPPs prepared by Joint Venture – Tractebel GmbH, Germany and NDC (the ‘Consultant’) in line with international best practices and applicable local regulations. The event brought together key stakeholders, including government officials, industry experts, investors, local and international banks, and representatives from the energy sector, to deliberate on the critical aspects of tariff-based bidding and its significance in the development of hydropower projects in Pakistan.
The workshop commenced with an insightful welcome remarks by Mr. Shah Jahan Mirza, Managing Director PPIB. Mr. Mirza commended the Consultant for its dedication and expertise in crafting a robust framework and remarked that this is a major step for moving towards award of projects through competitive bidding instead of present system. Other esteemed speakers delved into the intricacies of the RFP, highlighted its key features and potential to streamline the bidding process for hydropower projects.
Throughout the workshop sessions, participants engaged in dynamic discussions and knowledge-sharing activities. The workshop served as a platform for fostering dialogue, exchanging ideas, and building consensus on the way forward for accelerating the development of hydropower projects in Pakistan for lowering generation cost. Participants expressed their commitment to working collaboratively towards achieving the shared goal of ensuring a sustainable, reliable, less expensive and eco-friendly energy supply for the nation.
Mr. Shah Jahan Mirza expressed his gratitude to AFD, the Consultant and all other participants for their active involvement and valuable contributions towards making the event a success. He further remarked that PPIB has already accomplished significant success towards attracting private investment in establishing hydropower IPPs which is evident from the fact that so far 4 hydro IPPs of over 1,000 MW have been completed while another 13 hydro IPPs of 5,455 MW are at different stages of processing out of which 884 MW Suki Kinari project is scheduled to be operation by November 2024. Besides, hydropower, PPIB’s efficient facilitation has resulted in successful implementation of 54 wind/solar/bagasse based IPPs of 2,785 MW. As Pakistan continues its journey towards attaining energy security, sustainability, efficiency and competitiveness, initiatives such as this workshop play a pivotal role in shaping the future of the country’s energy landscape.
Pakistan Sustainability Week (PSW) alongside Solar Pakistan – 14th International Renewable Energy Exhibition and Electricity Pakistan – 7th International Exhibition for Energy, Storage and Power Industry organized by Fakt Exhibitions (Pvt.) Ltd. in collaboration with Private Power and Infrastructure Board (PPIB) kicks off on 27th February 2024 at Expo Centre Lahore.
The exhibition was inaugurated by Chief Guest Honorable Muhammad Baligh Ur Rehman – Governor Punjab in the presence of Mr. Saleem Khan Tanoli CEO – Fakt Exhibitions (Pvt.) Ltd, Mr. Shah Jahan Mirza – Managing Director PPIB, other top government officials and renowned industry names.
On this occasion, Mr. Muhammad Baligh Ur Rehman stated that “Fakt Exhibitions (Pvt.) Ltd. has taken a wonderful initiative by organizing Pakistan Sustainability Week event, he further added that it is good to see private institutions helping Government achieve its vision of Clean Green Pakistan.
The PSW provided a platform for thought leaders, innovators, and stakeholders to converge and deliberate on pressing sustainability issues facing Pakistan. As chief panelist, Mr. Shah Jahan Mirza had the privilege to participate in a dynamic discussion that explored strategies, challenges, and opportunities for driving sustainable development in the country. The discussion underscored the importance of accelerating the transition towards renewable energy sources to reduce Pakistan’s dependence on fossil fuels and enhance energy security. Embracing solar, wind, and hydropower solutions was identified as a key pathway to achieving a sustainable energy future while addressing Pakistan’s growing energy needs.
Under Government’s Hajj scheme, each year an employee from staff grades SG-I to SG-IV is picked through balloting who is sponsored by PPIB from its own resources for performing Hajj. Accordingly, the balloting for the Hajj-2024 was done on 10th January 2024. Since this was the first balloting after merger of AEDB with PPIB, it was done to pick one staff grade employee each from PPIB and dissolved AEDB. The ballot slips were picked by Mr. Shah Jahan Mirza, Managing Director PPIB, Director Generals, & Directors. As a result, PPIB’s Tariq Mahmood, Office Attendant and Mr. Muhammad Nazir, Driver from dissolved AEDB were declared as successful to perform Hajj for the year 2024 at PPIB’s expense.
The management congratulated both successful employees for this sacred duty.
Federal Secretary Minister of Energy (Power Division) Mr. Asad Rehman Gilani who is also the Chairman of the Board of Private Power and Infrastructure Board (PPIB) visited PPIB office on 9th January 2024 to have an overview of PPIB. This was his first visit to PPIB after assuming the charge of Ministry of Energy (Power Division). Managing Director PPIB Mr. Shah Jahan Mirza along with senior officials warmly welcomed the Secretary. Mr. Shah Jahan Mirza gave him a detailed presentation highlighting objectives of the creation of PPIB, its scope of services, achievements, issues & impediments of IPPs, recent merger of AEDB with PPIB and future plans.
The 3rd 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 20th 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 3rd 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 5th 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.
Corrigendum Dated 06-October 2023
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Invitation of Bids-Development of 600MWp Solar PV Project at Kot Addu/Muzaffarghar, Pakistan
Mr. Shah Jahan Mirza, Managing Director Private Power and Infrastructure Board (PPIB) had a very good discussion with RELP team on IRENA forum. RELP is developing credit enhancement guarantee mechanism with support of World Bank, ADB and other MDBs/IFIs. This will help Pakistan in reducing cost of financing and enhancing lenders and investor confidence in EPA payments structure. Once finalized It will be an effective product for achieving challenging targets of inducting large quantum of RE in Energy Mix.
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