Provinces denied ''BOOT'' hydel projects

The government has refused to hand over the ''Built-Own-Operate and Transfer'' (BOOT) hydel power projects to concerned provinces, even at the end of concession period.
Official sources told Business Recorder that the representative of NWFP had raised the issue at a recently held meeting of the Private Power Infrastructure Board (PPIB), saying that ''BOOT'' hydel projects should be transferred to provincial government after the expiry of ''concession period''.
PPIB officials opposed the proposal, pointing out that ''Power Policy 2002'' had clearly states that ''BOOT'' projects would be transferred to GoP, but asked the representative to take up the issue, separately, as the Board was not the competent forum to make any amendment in the policy.
Sources said that the Board was informed that as per ECC''s decision of January 4, 2006, the fast track projects would be commissioned by June, 30, 2008, for which the National Electric Power Regulatory Authority (Nepra) would prescribe upfront tariff with built-in incentive in capacity purchase price, and the sponsors would submit a performance bond of $10,000 per MW.
They further said Nepra has been asked to provide upfront tariff at the earliest for streamlining the projects, adding that the Ministry of Petroleum and Natural Resources had also been requested to allocate gas for the thermal power projects.
According to sources, the Citibank Consortium was working on expediting the three ICB projects but it was being considered to further reduce the timeframe for early commissioning of these projects. They said that the committee on review of security documents was also important from ICB perspective, and as GoP decisions related to guarantees, government obligations would also be applicable to ICB projects.
Regarding allocation of gas to new power projects, sources said that ECC has allocated certain quantities of gas from SNGPL and SSGC systems with low BTU gas from Mari and Uch gas fields and permeate gas from Qadirpur gas field.
Sources said that 68 MMCFD gas, which previously had been earmarked for 350-400 MW project at Chichoki Malian, would be allocated to the next combined cycle projects, if these could be commissioned earlier than Chichoki Malian project. The Ministry has also earmarked 100 MMCFD gas from Mari field for 133 MW Star (40 MMCFD) and 175 MW Fauji Mari Power Project (60 MMCFD) against the sponsors'' demand of 44 and 65 MMCFD.
Sources quoted Secretary Petroleum as saying that around 30-40 MMCFD gas may be additionally available from Mari gas and the request of sponsors could be considered, subject to approval of the ECC.