ISLAMABAD: The government is to extend Host Country Approval to amended guarantee coverage in favour of new investor company for 100mw MIRA Power Limited, sources in PPIB told Business Recorder.
At a recent meeting of the Board of Private Power and Infrastructure Board (PPIB), Managing Director PPIB, Shah Jahan Mirza apprised that MIRA Power Ltd is 100MW hydropower project in AJ&K which was commissioned in March 2020.
As per the Government of Pakistan’s Implementation Agreement (GoP IA) there were four shareholders and later on one of the shareholders, M/s Sambu Construction Company Limited, exited after approval from GoP/PPIB.
The Company, in May 2023, informed PPIB that another shareholder, DAELIM is transferring its entire shareholding to its affiliate, M/s DL E&C, for which PPIB, in January 2024, issued in-principal approval pursuant to section 12.3(c) of GOP IA.
In December 2023 MIRA requested Finance Division for consent/ approval of GoP for proposed change in shareholding, for which Finance Division in January 2024 solicited certain information from Power Division. PPIB provided the requisite information to Power Division and in response, Power Division directed PPIB to place the matter before PPIB Board.
Therefore, matter has now been placed before PPIB Board to recommend to the Power Division to accord its concurrence for Host Country Approval to amended guarantee coverage in favour of new investor of the Company, DL E&C, subject to concurrence of the Board of Investment, Ministry of Finance, Ministry of Law & Justice, Ministry of Foreign Affairs and the Office of the Attorney General for Pakistan.
On a question from representative Go Punjab regarding approval of change in shareholding by Managing Director instead of the Board, MD PPIB clarified that if change in shareholding is in accordance with IA provisions then approving authority is MD PPIB.
However, in this particular case, since change in shareholding was within limitations mentioned in IA, therefore, approval was granted by MD PPIB. This matter, being approval of host country for change in shareholding, has been brought to the Board upon recommendation of Power Division.
On a comment from representative Finance Ministry regarding seeking concurrence of AG Office, BoI and other Ministries, DG(Law) PPIB explained that since Finance Division is signatory to MIGA convention, therefore concurrence of other stakeholders will be obtained by Finance Ministry itself.
He also highlighted the risks to which GoP might get exposed in case approval of host country is delayed unreasonably.
After deliberations, the Board recommended Power Division to accord its concurrence to Finance Division, for Host Country Approval to amended guarantee coverage in favour of new investor DL E&C and Finance Ministry may seek concurrence from other stakeholders, if deemed appropriate.
Copyright Business Recorder, 2024