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Investor Presentaiton

ANNUAL REPORT P Private Power and Infrastructure Board ANNUAL REPORT Private Power and Infrastructure Board Future Plans and Targets Enjoying a laudable past track record, PPIB is committed to maintain its reputation of providing services to the nation. As front line institution of the GOP, PPIB is working efficiently for development of power sector on solid, reliable and sustainable footings. PPIB has already put bar on processing new imported fuels based power generation projects for encouraging indigenous Thar coal, and renewable hydro based power generation projects. The efforts of PPIB have started delivering positive outcome as power sector is witnessing a remarkable growth of prioritized fuels and technologies which is a healthy indicator towards attaining reliability and sustainability in the system. The increasing share of indigenous coal and hydro has reduced the oil percentage to 17% of the energy history of Pakistan and it is further declining with the gradual commissioning of new IPPs on indigenous fuels. For fullfiling long term power requirements, the GOP has increased focus on least cost generation options and use of domestic resources, particularly hydro potential in the north, renewable Wind and Solar in south and local coal mostly available in Thar area. Creating an ideal balance amongst various choices which are affordable within a sustainable socio-economic framework for the country would form a solid base towards attaining long-term sustainability and reliability in the sector. PPIB is devoted to implement the reform agenda of the GoP for developing power sector to make it an efficient and profitable sector under the Indicative Generation Capacity Expansion Plan (IGCEP) which will be revised every year on the basis of ground realities including growth trajectory, consumption patterns and completion or delays in projects to ensure regulatory compliance. The IGCEP specifies various generation requirements, fuel choices, technologies, plant sizes, timing of their addition into the system, and in many cases their location as well. The plan will continue to focus on least cost generation options and on harnessing indigenous resources, particularly Thar coal and renewable in south and hydro potential in the north. There are various important bipartite and tripartite activities involved in processing of a power generation project such as tariff determination, land acquisition, generation license, environmental clearance, IA, PPA, WUA, CSA, TSA, FSA etc which are interdependent on each other and if this cycle of activities is disrupted by any single activity, it impacts the overall chain thus disturbing the project timelines. Therefore, for ensuring smooth processing of projects, well-coordinated efforts amongst all relevant stakeholders as well as Project Sponsors play a critical role. PPIB has always been determined in timely execution of all activities by maintaining close liaison with relevant stakeholders as well as other federal and provincial levels key players. Since upcoming projects are at advance stages of development, hence require added attention for accomplishing critical milestones. Accordingly, for future, PPIB would continue to be focusing on efficient handling of the portfolio of projects in the backdrop of prevailing COVID-19 challenge. In this regard, PPIB's immediate target would be to complete eleven (11) IPPS of more than 5,000 MW mostly based on Thar coal and hydro during the period 2020-2022. Gwadar Suki Kinari Shanghai Siddiqsons Karot Riali Lucky ThalNova Thar Energy PTPL PPIB's Immediate Targets 2020-2022 2020 2021 2022 Fuel wise portfolio of ongoing power generation being handled by PPIB vis-à-vis targets set for accomplishing various tasks related to projects development are elaborated hereunder: Hydropower Generation Apart from being comparatively longer gestation periods, hydropower being a clean source of electricity with other allied advantages, remains on the favourite list, world wide, hence, it is all time favourite choice of the policy makers. Beside direct advantage of generating electricity, development of a hydropower project brings several indirect benefits which include but not limited to creation of employment opportunities, development of allied infrastructure and industry, boosting agriculture industry through smooth supply of electricity and water, flourishing tourism activities in the area, initiation of community welfare programs under Corporate Social Responsibility (CSR). However, hydropower generation is dependent upon the hydrology which varies on seasonal basis. Further the remote location of hydropower plants, higher construction cost, longer transmission lines etc. are the potential challenges in development of hydropower projects in Pakistan. As discussed in detail earlier, currently PPIB is processing a portfolio of fourteen (14) hydro IPPs of 6,175 MW which are at different stages of implementation, some are at LOS stage while various IPPS are at post LOS, FC and construction stages. Similarly, there are few projects which are being planned to be awarded through ICB process under the Power Generation Policy 2015 and subject to the roadmap of IGCEP. 113 114
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