ISLAMABAD: The government has allowed the Private Power Infrastructure Board (PPIB) to execute agreements with private investors on 3,000MW local coal-fired power plants in Thar (Sindh).

The decision was taken at a meeting of the PPIB Board presided over by Minister for Power Division, Sardar Awais Ahmed Khan Leghari on Tuesday. According to an official statement, while settling multiple matters regarding smooth implementation of power projects, the Board decided to allow execution of Implementation Agreements and Supplemental to Implementation Agreements with the power generation projects based on Thar coal; thus allowing the PPIB to sign these agreements for smooth and earliest implementation of their projects.

These projects include 1320MW Thar Block-I Power Generation Co (Shanghai Electric Power Co), 330MW Thar Energy (HUBCO) Power Project, 330MW Thal Nova Thar Power Project, 660MW Lucky Electric Power Co and 330 MW Siddiqsons Energy Limited.

The projects of M/s Lucky Electric Power and Siddiqsons Energy were initially approved on imported coal but later on the government refused to honor its earlier commitment with the investors and forced them to opt for Thar coal.

Though the Prime Minister had slapped ban on establishment of imported–fuel fired power plants but one “dear” project based on imported coal was approved in Rahimyar Khan.

The minister for Power Division while presiding over the meeting said that all efforts should be made to promote the local coal and any action should not in any way affect or delay the pace of mining at Thar. He said that any temporary arrangement to use imported coal should be well monitored and the plant design should be based on Thar coal specifications for use of indigenous coal.

According to the minister, the government has initiated a third-party evaluation of the electricity demand and supply scenario which is in the final stage and the Power Division is expected to receive its first report shortly. He said that based on the third party evaluation and other related matters, the government will streamline the approval of new power projects in the country.

Sardar Awais Ahmed Khan Leghari emphasized that uniform policy should be adopted for issuance of Letter of Intent (LOI) and Letter of Support (LOS) to the potential investors in the power sector in order to ensure transparency. He said that any extensions in projects timelines should only be allowed in accordance with the applicable policies.

Managing Director PPIB, Shah Jahan Mirza briefed the Board on the power generation and transmission line projects currently being handled by the PPIB. The minister said that PPIB being the one window facilitator for private sector power projects, should hold its Board meetings frequently aimed at disposing of cases more diligently. He conveyed that the Power Division is considering switching from present upfront tariff regime to competitive bidding regime to add most affordable electricity for the consumers in the national grid, adding that recommendations in this regard will be placed before the government for its consideration.—MUSHTAQ GHUMMAN