Overview of Pakistan Power Sector and Role of Ipps: Shah Jahan Mirza
Overview of Pakistan Power Sector and Role of Ipps: Shah Jahan Mirza
Overview of Pakistan Power Sector and Role of Ipps: Shah Jahan Mirza
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CONTENTS
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PAKISTAN POWER SECTOR - TIMELINE
JOURNEY
Initially two vertically integrated utilities i.e. WAPDA and KESC, were responsible
for generation, transmission and distribution in their areas
Total installed capacity is around 25,000 MW with 53% and 47% Share of Public and
Private Sector respectively.
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PAKISTAN POWER SECTOR – KEY PLAYERS
GOVERNMENT OF PAKISTAN
Ministry of Pakistan
Gilgit
Atomic Provinces AJK
Water Energy
NEPRA Baltistan
Khyber
WAPDA AEDB PEPCO PPIB CHASNUPP KANUPP Pukhtoon Punjab Sindh Balochistan
Khwa
Private
Sector
Water
Mega Dams GENCOs DISCOs NTDC
Projects
IPPs/ SIPPs
IPPs
(Small Hydel, Wind,
(Hydel, Oil, CPPs KESC
Solar, Bio Diesel, Bio
Gas, Coal)
Mass, Cogeneration)
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PAKISTAN POWER SECTOR -
TOTAL INSTALLED CAPACITY
MW
MW %
%
Private Sector
IPPs
IPPs 9,273
9,273 37
37
KESC
KESC 2,422
2,422 10
10
Total
Total 11,695
11,695 47
47
Total
Total Installed
Installed Capacity
Capacity 24,953
24,953 MW
MW
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PAKISTAN POWER SECTOR –
CURRENT SCENARIO
In the peak summer months, electricity demand-supply gap reaches up to
6,000 MW resulting in load-shedding of up to 8-16 hours per day
WAPDA (NTDC) Power Planning has projected a demand of 31,757 MW by
the year 2020
Even if the maximum capability of 18,477 MW is assumed, country would
need additional 13,310 MW (net) by the year 2020, requiring an
investment of $15 billion
The government is looking towards private sector to bring additional
generation on coal, hydro and renewable energy on fast track basis
In order to encourage private sector, the government has been issuing
various policies/ guidelines from time to time in the past at both federal
and provincial levels
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PLANS TO ENHANCE POWER GENERATION
CAPACITY AND ALLIED INFRASTRUCTURE
The GoP has recently approved Power Generation Policy 2015 which
provides attractive incentives for private investors
Extensive networks of high voltage transmission lines and grid stations are
being developed to evacuate power from upcoming mega coal and hydel
projects to be located southern and northern part of country.
The GoP has approved Private Transmission Line Policy for allocating
private investment in high voltage transmission lines
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PPIB - A ONE WINDOW FACILITATOR
Created in August 1994 as a one-window facilitator on behalf of GOP, its
Ministries/ Departments to promote private investments in power sector
Received statutory status on 6th March 2012 by an Act of the Parliament
Approves IPPs and executes Implementation Agreements and provides GOP
guarantees on the name of President of Pakistan
Facilitates IPPs in executing PPA, FSA/GSA WUA with relevant GOP agencies
Coordinates/ Liaisons with local and international multilateral development/
Financial Institutions
Out of a total of 31 IPPs, PPIB managed to induct 29 (IPPs) totaling 6,142 MW
with an investment of around US$ 7 billion.
Attracted leading international/ local investors and lenders to the Pakistan
Power Sector
Succeeded in commissioning of first Hydel IPP in Pakistan and AJ&K i.e. 84
MW New Bong Escape Hydropower Project
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IPP MODEL BEING EXECUTED BY PPIB
CSA: Coal Supply Agreement
GSA: Gas Supply Agreement
PPA: Power Purchase Agreement
GoP
IA: Implementation Agreement
DIA: Direct Implementation Agreement
Provincial
Provincial Tripartite LOS DIA
Govt./
Lenders
Govt./ AJ&K
AJ&K
EPC/ O&M
OGRA Contractors
NEPRA
PRIVATE POWER PROJECTS IN OPERATION
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PRIVATE SECTOR PROJECTS IN OPERATION
AZAD JAMMU & KASHMIR
New Bong Escape Hydropower Project 84 Mar 2013 Tot. Capacity: 9,072 MW
PUNJAB
Altern Energy Ltd, Attock 29 Jun 2001
Japan Power Generation, Lahore 135 Jan 2000
Kohinoor Energy Ltd., Lahore 131 Jun 1997
Southern Electric Co., Lahore 136 Jul 1999
Saba Power Company, Lahore 125 Dec 1999
AES Lalpir Ltd., Multan 362 Nov 1997
AES Pak Gen, Multan 365 Feb 1998
Fauji Kabirwala Co., Multan 157 Oct 1999
Rousch Power, Multan 450 Dec 1999
KAPCO, Muzaffargarh 1638 Jun 1996
Attock Gen, Rawalpindi 165 Mar 2009
Atlas Power Ltd., Sheikhupura 225 Nov 2009
Nishat Power Ltd., Lahore 200 Nov 2009
Saif Power Ltd., Sahiwal 229 Apr 2010
Orient Power Ltd., Balloki, Kasur 229 May 2010
Nishat Chunian Power Ltd., Lahore 200 Jul 2010
Sapphire Electric Co. Ltd., Muridke 225 Oct 2010
Liberty Power Tech Ltd., Near Faisalabad 200 Jan 2011
HUB Power Company Limited, Narowal 220 Apr 2011
Halmore Power Generation Co. Ltd., Bhikki 225 June 2011
Davis Energen Power Ltd., Jhang 11 July 2013
BALOCHISTAN
Hub Power Project, Hub 1292 Mar 1997
Uch Power Ltd., Uch 586 Oct 2000
Habibullah Coastal, Quetta 140 Sep 1999
Uch-II Power Limited, Uch 404 Apr 2014
SINDH
TNB Liberty Power Ltd., Daharki 235 Jun 2001
Tapal Energy Ltd., Karachi 126 Jun 1997
Gul Ahmed Energy Ltd., Karachi 136 Nov 1996
Engro Powergen Qadirpur Ltd., Dakarki 227 Mar 2010
Foundation Power Co. (Daharki) Ltd. 185 May 2011 13
INVESTORS AND LENDERS PARTICIPATING
IN PRIVATE POWER PROJECTS
INVESTORS LENDERS
Local Foreign Local Foreign
Nishat Group International National Bank of Pakistan IFC
Sapphire Power (UK) Habib Bank Ltd. World Bank
Textile Ltd. Congen United Bank Ltd. ADB
Attock Refinery Technology Muslim Commercial Bank IDB
Ltd. El Paso (USA) Allied Bank Ltd. US Exim Bank
Engro Tenaska (USA) Askari Bank Ltd. AIDEC
Chemical Mitsui (Japan) Faysal Bank Ltd. CDC (UK)
Shirazi Xenel (KSA) Meezan Bank Ltd. EDC (UK)
Investment TNB (Malaysia) Bank Al Habib SACHE (Italy)
Fauji AES Corporation
Foundation Habib Metropolitan Bank ANZ Banking Group
Saif Group
AEB Ltd. (Australia)
Liberty Mills
IFC The Bank of Punjab ABN Amro Bank
Descon Group
Oman Oil Soneri Bank Ltd. Jexim (Japan)
Gul Ahmed
DEG Germany NIB Bank Ltd. Bank of Tokyo Mitsubishi
Tapal Family
GE Capital Pak Oman Investment Co. Toronto-Dominion Bank
Saigols
GDF Suez Pak China Investment Co. DEG (Germany)
(France) Saudi Pak Industrial and EMO (Netherlands)
Agricultural Investment PROPARCO (France)
Co. SWEDFUND (Sweden)
K-EXIM
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NEW INVESTMENT INITIATIVES (RLNG
Projects) (1/4)
Recently, NEPRA has announced Upfront Tariff for the LNG based power
plants
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NEW INVESTMENT INITIATIVES
(In progress private sector Hydel Projects)
(2/4)
Solicitation of Project Proposals for establishment of:
80 MW Neckeherdim-Paur Hydropower Project, YarKun River,
Chitral Valley, KPK
350 MW Athmuqam Hydropower Project, Neelum River, AJ&K
Key Projects requiring support in areas of Equity Participation,
EPC Contract, O&M Contract, Electro-Mechanical Equipment
Supply and Lending/ Financing:
640 MW Azad Pattan Hydropower Project, Jehlum River,
Sudhnoti, AJ&K
500 MW Chakothi Hattian Hydropower Project, Jehlum River,
Muzaffarabad, AJ&K
548 MW Kaigah Hydropower Project, Indus River, Kaigah, KPK
157 MW Madian Hydropower Project, Swat River, Swat, KPK
215 MW Asrit-Kedam Hydropower Project, Swat River, Kalam,
KPK
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WAPDA HYDEL PROJECTS
(UNDER IMPLEMENTATION)
969 MW Neelum Jhelum Hydropower Project, Neelum River/ Jhelum
River, near Muzaffarabad, AJ&K
4,320 MW Dasu Hydropower Project, Indus River, District Kohistan,
Khyber Pakhtunkhwa
96 MW Jinnah Hydropower Project, Indus River, District Mianwali,
Punjab
121 MW Allai Khwar Hydropower Project, Indus River, District
Battagram, Khyber Pakhtunkhwa
72 MW Khan Khwar Hydropower Project, Indus River, District
Shangla, Khyber Pakhtunkhwa
130 MW Duber Khwar Hydropower Project, Indus River, District
Kohistan , Khyber Pakhtunkhwa
22 MW Jabban Hydropower Project, Swat River, District Malakand
(PATA) Khyber Pakhtunkhwa
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INVESTMENT INITIATIVES
(Coal based Power Projects) (3/4)
At present, various local and imported coal based IPPs are under
process with PPIB, most of which are being developed under the
China Pakistan Economic Corridor (CPEC)
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PPIB’s PORTFOLIO OF UPCOMING PRIVATE POWER PROJECTS
(IPPs)
2025 80 1 0 0 0 0 80 1
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POWER GENERATION POLICY 2015
SALIENT FEATURES/ INCENTIVES (1/2)
For Hydro Power Projects; WUC will be paid @ Rs. 0.425/kWh to the
province where the project is located.
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POWER GENERATION POLICY 2015
SALIENT FEATURES / INCENTIVES (2/2)
Attractive ROE provided by the Regulator – Imported Coal: 27.3 ; Local
Coal: 29.5; Thar Coal: 34.5; Hydro: 17% IRR (23% ROE) ; Gas/LNG: 15%
IRR (18% ROE)
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Backup Slides
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PPIB’s PORTFOLIO OF UPCOMING PRIVATE POWER PROJECTS
(IPPs)
2025 80 1 0 0 0 0 80 1
Huaneng
1,320 MW Shandong
Shandong Ruyi • The Project is required to achieve Financial
6 Power Project – 1,320 1,914 Mar-18
(Pak) Energy Closing by 31st December 2015
Imported Coal
(Pvt) Ltd
PROGRESS OF ONGOING IPP PROJECTS BEING
PROCESSED BY PRIVATE POWER & INFRASTRUCTURE
BOARD (PPIB)
Gross Estimated Project
Sr. Name of the Expected
Capacity Investment Company/ Latest Status of the Project
No. Project COD
(MW) (Million US$) Sponsors
20 Sheikhupura (Atlas) Power Project Sheikhupura, Punjab 225 227.00 RFO 18/Dec/2009
25 Nishat Chunian Power Project Near Lahore, Punjab 200 237.41 RFO 21/Jul/2010
Dual
26 Muridke (Sapphire) Power Project Muridke, Punjab 225 244.88 05/Oct/2010
(Gas+HSD)
27 Liberty Power Tech Project Near Faisalabad, Punjab 200 241.06 RFO 13/Jan/2011