Package for power sector investors approved

Water and Power Minister Liaquat Ali Jatoi has stressed upon the need to incorporate changes in the regulations of National Electric Power Regulatory Authority (Nepra) and Private Power Infrastructure Board (PPIB) to enhance investors confidence. "The regulations and procedures of Nepra and PPIB require restructuring to expedite implementation on the power sector projects," the minister was quoted as saying, while presiding over the 49th meeting of the PPIB here on Thursday.
He also approved a package for power sector investors and curtailed the schedule of processing and simplified the procedure for power sector projects.
The minister, while appreciating the work of the committee constituted earlier for shortening the procedures, approved reduction of the processing time for unsolicited proposals (projects from the sponsors) from 465 days to 185 days and for solicited proposals (projects through competitive bidding) from 490 days to 306 days.
The simplified procedure includes pre-qualification of documents, evaluation, pre-qualification of biding documents, tariff determination and issuance of letter of support by the PPIB. Furthermore, the time for financial closing has also been reduced from 18 months to six months, which will benefit the investors in reduction of mark-up on their loans for the power projects.
Jatoi said that commitment made earlier with the private sector investors pertaining to the processing of the project would be fully honoured and the Water and Power Ministry would take up gas availability and regulatory issues with the relevant ministries. If the problem still remain unresolved, he would take up the matter with the prime minister.
Recognising the importance to develop indigenous coal resources, the board decided to extend the pre-qualification submission deadline for 450MW Coal Fired Power project at Lakhra, Sindh from October 31 to December 31.
The board approved issuance of letter of interest for a 150MW project near Rawalpindi.
The meeting was also apprised that the LoI had already been issued to 11 power projects of 2,696MW based on gas, hydel and coal and expected to be completed during 2007 to 2012, which would meet the future power needs of the country. The meeting also considered various proposals of fast track power projects to meet the electricity requirements of Karachi.
Water and power secretary, special secretary, PPIB managing director, petroleum secretary, Wapda chairman, Member Planning Commission, Finance additional secretary, Sindh and NWFP irrigation secretaries and other senior officials attended the meeting.