IPPs to generate 3,750 MW within three years
By Ali Imran

ISLAMABAD—The Federal Minister for Water and Power, Raja Pervez Ashraf has directed to make more investor’s friendly policies and simplify the procedures in order to further improve the investment climate of the country particularly in the power sector.
He also advised that after meeting the immediate power requirements, the focus should be on indigenous fuels and resources like Hydro and Coal. This was stated by the Minister of Water and Power Raja Pervez Ashraf during a briefing given to him Thursday by Private Power and Infrastructure Board (PPIB). He said the government was committed to end the menace of load shedding in the country within the next three years and local and foreign investors might be welcomed with open hands in this respect.
Currently the portfolio of priority projects being processed by PPIB includes 39 power projects of around 10,000 MW, on different fuels and resources. The Minister was informed that eight projects totaling 1,667 have achieved financial closure, while another eight projects of 1,494 MW are expected to achieve their financial closures this year. It was informed that 615 MW of power will be available to the national grid by April 2009 from the private sector, which will increase to 1,667 MW by end of 2010, and a total of 3,750 MW will be supplied by the private sector by the end of year 2011. Two thermal power projects of 500 MW each at Faisalabad and Dadu are also being processed, through International Competitive Bidding (ICB) basis, and the response of the local and foreign investors has been very encouraging.
It was also briefed that 20 hydropower projects of about 4,500 MW are at different stages of processing, out of which, 15 projects of 3,950 MW have already been issued Letters of Interest (LOIs). Similarly for development of indigenous coal, LOIs have been issued to 4 companies with a cumulative capacity of 1,550 MW, while another 1,000 MW project based on Thar coal is being processed under international competitive bidding. In addition, two projects of 1,000 MW each on imported coal will be set up at Gadani by 2013, which will eventually use local coal from Thar.
Meanwhile the Federal Minister for Water and Power also reviewed progress on Alternative Energy Projects. Chief Executive Officer, AEDB, Air Marshal (R) Shahid Hamid gave a briefing to the Minister. The Minister was informed that various projects of wind powered IPPs are being processed by AEDB, each of 50 MW capacity. These projects will be installed along the general wind corridor along the coastline in Sindh. And a land of 33,976 acres has been leased for these projects, which hav been provisionally allocated for 24 such projects. The Minister was informed that Zolru Enerji of Turkey has initialed the Energy Purchase Agreement with NTDC for its 50 MW wind power project The Company also plans to install 06 MW in the first phase of its 50 MW wind power project, groundbreaking ceremony for which is likely to take place at the end of June 2008.
The Minister was further informed that as part of 100 Days Programme, 1762 homes in 31 remote, off-grid villages in all four provinces are being provided electricity by AEDB is also electrifying 400 villages in Balochistan and Sindh through Solar energy. So far 1064 homes of District Tharparker Sindh have been provided electricity by Solar Energy. A total of 2500 such homes will be electrified in District Tharparker by AEDB by June 2008, it was further informed Secretary, Advisor and Additional Secretary of Ministry of Water and Power and other senior government officials also attended both the briefings.