Investor Presentaiton

ANNUAL REPORT P Private Power and Infrastructure Board ANNUAL REPORT Private Power and Infrastructure Board 3.1 Private Power and Infrastructure Board's Profile Government of Pakistan (GoP) in view of strategic unbundling plan of WAPDA approved in 1992 considering that power policy issue cuts across the responsibility of numerous ministries and departments and that specialized skill set in technical, financial, legal and investment areas lacks in typical government structure established the Private Power and Infrastructure Board (PPIB) in 1994 as a "One-Window" organization to promote, encourage and facilitate private investments in power sector. While initially PPIB was established through an administrative order of Federal Government, to engender more operational and administrative independence PPIB was given statutory status in 2012 through Private Power and Infrastructure Board Act, 2012 (Act VI of 2012) (the "PPIB Act"). The core functions of PPIB include implementation of and assist in formulation of power policies towards facilitation of development of power generation and infrastructure (transmission lines), preparation and execution of security package documents including GoP Guarantee in relation to such projects, coordination with provincial/AJK/GB governments and other government agencies (such as NEPRA, SBP, FBR, Environmental Protection Agencies etc) to achieve the policy objectives. On power generation side, the PPIB's mandate extends to all kind of power generation including hydel, thermal, coal, gas, RFO, diesel except nuclear, alternative and renewable resources. Later to allow specific public sector projects to be processed in IPP mode, PPIB Act was amended vide Private Power & Infrastructure Board Amendment Act, 2016. يمان PPIB since its inception has been instrumental to attract massive investment in energy sector in different technologies including hydropower, coal, gas, RLNG and oil under various GoP power policies announced in 1994, 1995, 2002 and finally 2015. It has acquired in-house expertise and right mix of skill set in structuring project finance transactions, evaluation of financing documents, negotiating and finalizing project agreements, conduct of feasibility studies etc. It has played a vital and leading role in bridging the gap between demand and supply in power sector and so far has successfully facilitated development of forty (40) power projects based on multi-fuel technologies with cumulative capacity of 17,550 Megawatts (MW), approximately 50% of total generation capacity of Pakistan. PPIB has also facilitated development of Pakistan's first ever private sector approx. 870 KM long HVDC transmission line project under the aegis of CPEC. Thus a vast, enriching and time tested experience in the areas of project and infrastructure finance, engineering, policy, HR, IT and law is presently housed in PPIB. PPIB performs following functions in the light of PPIB Act 2012 and PPIB Amendment Act 2016: Recommend and facilitate development of power policies; consult the concerned Provincial Government, prior to taking a decision to construct or cause to be constructed a hydroelectric power station in any Province and to take decisions on matters pertaining to power projects set up by private sector or through public private partnership and other issues pertaining thereto; coordinate with the Provincial Governments, local governments, Government of Azad Jammu and Kashmir (AJ and K) and regulatory bodies in implementation of the power policies, if so required; coordinate and facilitate the sponsors in obtaining consents and licences from various agencies of the Federal Government, Provincial Governments, local governments and Government of AJ and K; work in close coordination with power sector entities and play its due role in implementing power projects in private Sector or through public private partnership or for public sector power projects as per power system requirements; function as a one-stop organization on behalf of the Federal Government and its Ministries, Departments and agencies in relation to private power companies, sponsors, lenders and whenever necessary or appropriate, other interested persons; draft, negotiate and enter into security package documents or agreements and guarantee the contractual obligations of entities under the power policies; execute, administer and monitor contracts; prescribe and receive fees and charges for processing applications and deposit and disburse or utilize the same, if required; obtain from sponsors or private power companies, as the case may be, security instruments and encash or return them, as deemed appropriate; act as agent for development, facilitation and implementation of power policies and related infrastructure in the Gilgit-Baltistan areas and AJ & K; prescribe, receive, deposit, utilize or refund fees and charges, as deemed appropriate; open and operate bank accounts in local and foreign currencies as permissible under the laws of Pakistan; commence, conduct, continue and terminate litigation, arbitration or alternate dispute resolution mechanisms at whatever levels may be necessary or appropriate and hire and pay for the services of lawyers and other experts therefor; appoint technical, professional and other advisers, agents and consultants, including accountants, bankers, engineers, lawyers, valuers and other persons in accordance with section 11; hire professional and supporting staff and, from time to time, determine the emoluments and terms of their employment, provided always that at no stage shall such emoluments be reduced from such as are agreed in the contracts with such persons; and perform any other function or exercise any other power as may be incidental or consequential for the performance of any of its functions or the exercise of any of its powers or as may be entrusted by the Federal Government to meet the objects of the Act. 21 24 22 2

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