ISLAMABAD: Prime Minister Shahbaz Sharif is likely to discuss issues of K-Electric (KE) and investment in solar power projects with Saudi Minister for Energy, Prince Abdulaziz bin Salman Al-Saud during his visit to Saudi Arabia commencing from Sunday (today), well-informed sources told Business Recorder.
The resolution of some of the pending issues of KE is a direct result of a meeting at the Prime Minister’s Office (PMO) under the umbrella of the Special Investment Facilitation Council (SIFC).
He is also expected to discuss proposed transactions for financing under the Saudi Fund for Development (SFD) with the Saudi authorities.
The sources said, during a recent visit of the team of Saudi Fund for Development some proposals came under discussion, during which the status of utilisation of $ 91 million financing offered by the Saudi Fund for Development for Lot-II of Jamshoro coal-fired power project signed in 2019 with the Economic Affairs Division at Islamabad also came under discussion.
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The Saudi delegation was informed that presently, the implementation of Lot-II of Jamshoro coal-fired power plant has been pended due to technical issues. Moreover, the validity of bid for Lot-II which was opened on June 26, 2016 has expired.
It was further discussed that Power Division may propose alternate project(s) or transactions for utilisation of $ 91 million financing offer of SFD. In this regard, the Genco Holding Company Limited (GHCL) has proposed following two transactions in Gencos: (i) $ 40 million for equity in Northern Power Generation Company Limited (NPGCL) for 300-MWp utility solar PV power plant at existing site of Thermal Power Station (TPS) Muzaffargarh in PPP Mode through SFD. The balance amount of $ 160 million will be arranged by the prospective private partner; and (i) the balance amount of $ 51 million of SFD will be utilised for rehabilitation of steam turbine of 747-MW Combined Cycle Power Plant, Guddu.
Prime Minister will hold SIFC (Special Investment Facilitation Council) meetings on related matters and other bilateral meetings with the Saudi side and other leaders during his visit to attend the World’s Economic Forum meeting.
Prime Minister will also hold a meeting with Saudi company M/s ACWA Power. It has already shown interest in development and off-take of power from renewable energy (RE) projects of 3,000-MW to be developed by M/s ACWA Power, which is mainly focusing on Saudi Arabia.
Private Power and Infrastructure Board (PPIB) has also expressed its readiness to assist M/s ACWA in establishing solar projects totalling 1200-MWp in South Punjab.
PPIB Managing Director Shah Jahan Mirza informed the Special Secretary SIFC that the draft Inter-Governmental Framework Agreement (IGFA) between the Governments of Saudi Arabia and Pakistan for cooperation and development of power projects had been prepared and shared with the Ministry of Foreign Affairs for further communication with Riyadh.
Copyright Business Recorder, 2024
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