Saturday, October 27, 2007

2456 MW power by 2010

13 projects to provide 2456 megawatts power by 2010

ISLAMABAD (October 27 2007): Thirteen private power projects, of 2456 MW, will be commissioned by 2010, of which 554 MW will be available to the national grid next year, while 1343 MW and 559 MW will be injected into the system in 2009 and 2010, respectively. These projects would be completed through private sector investment of $2 billion.This was announced in the 74th meeting of the Private Power & Infrastructure Board (PPIB) held here on Friday. Liaquat Ali Jatoi, Minister for Water and Power, chaired the meeting.The Minister termed the planned projects a massive achievement as the country's power demand has been increasing. Due to liberal policies of the government, both local and foreign investors have shown keenness to invest in the country' power sector, he added.He appreciated the efforts of PPIB Managing Director Yousuf Memon and his team, and the quick decision-making of all Board members for facilitating the investors. The meeting was informed that PPIB was currently processing 62 multiple-fuel (oil, coal, gas and hydel) power projects having a cumulative capacity of 16,790 MW, which are expected to be commissioned from 2008 to 2016.Out of these, Letters of Interest (LoIs) have been issued for 33 projects with a cumulative capacity of 9,276 MW. Letters of Support (LoS) have been issued for 14 projects totalling 2,590 MW, while Implementation Agreements (IAs) have been signed for 10 projects of 2,026 MW capacity.The projects for which PPIB has signed IAs include 225 MW Orient Power, 225 MW Sapphire Power, 225 MW Saif Power, 165 MW Attock General, 202 MW Fauji Mari, 200 MW Nishat Chunian, 200 MW Nishat Power, 225 MW Atlas Power, 134 MW Star Power and 225 MW Halmore Power. Moreover, IAs of 227 MW Engro Power and 179 MW Gulf Power are ready for signatures.A number of companies have also concluded Direct Implementation Agreements with their lenders, while five IPPs, namely Orient Power Project, Sapphire Power Project, Fauji Mari project, Attock General and Saif Power have achieved financial closure. Other project sponsors are aggressively working to achieve financial close.The meeting was also informed that IA has also been signed for the 84 MW New Bong Hydel Power Project which is the first private hydropower project in the country to make such a breakthrough, and will make way to other 21 hydropower projects in the pipeline which are being processed by the PPIB. The Board also recommended that tariff of hydropower projects be rationalised to attract further investment in this sector.Jatoi said that there was a rapid growth in economy, and expansion in the industrial sector was being witnessed because of the radical development reforms of the present government. "This has to be augmented with uninterrupted supply of electricity, and the progress in the power sector is a proof to our commitment towards the development of the country and economic betterment of the people," he added.

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