ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet, scheduled to meet on Thursday (Dec 19), is set to approve the security package documents for the 7.08 MW Riali-II Hydropower Project under the Power Generation Policy, 2015, sources informed Business Recorder.
However, the Finance Division has emphasized that the Power Division should ensure the proposed documents align with the Power Generation Policy 2015 particularly in terms of contractual matters. This includes ensuring that no additional obligations or guarantees are created beyond those already outlined in the policy.
The Finance Division further stated that the government of Pakistan (GoP) will not assume any obligation for the payment of Water Use Charges (WUC) to AJ&K, asserting that these charges should be covered by the Independent Power Producers (IPPs) through their tariffs.
Recently, the PPIB Board approved an extension for the Financial Closing Date under the Tripartite Letter of Support (TLOS) for the 7.08 MW Riali Hydropower Project, extending the deadline by 18 months—from April 13, 2024, to October 12, 2025. PPIB Board had accorded approval for extension in the Financial Closing Date under the Tripartite Letter of Support (TLOS) of 7.08 MW Riali Hydropower Project for a period 18 months i.e. from April 13, 2024 to October 12, 2025. During the meeting MD PPIB apprised that 7.08 MW Riali-II Hydropower Project is run of river project located on Ghori Nullah, in AJK.
Due to the non-availability of ECC approved Security Documents (Implementation Agreement GoPIA - AJ&K Implementation Agreement- AJ&KlA, Energy Purchase Agreement-EPA and Water Use Agreement - WUA) for small hydro power projects, three extensions of 12 months each on Sept 7,2021, December 29, 2022 and November 10, 2023, respectively, were granted in the Tripartite Letter of Support.
As per the Amendment#3 (3rd Extension) of TLOS, the Project Company was required to sign the Project Agreements before Financial Close of the project for which they approached SIFC for early processing of approval of Project Agreements from CCoE/ECC.
Copyright Business Recorder, 2024