Investor Presentaiton

ANNUAL REPORT P Private Power and Infrastructure Board ANNUAL REPORT Private Power and Infrastructure Board framework (i.e. Policy Framework for Power Generation 2021) keeping in view the investors' friendly regime at one end and affordable electricity for masses at large through bringing-in market competition. 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 on the overall chain thus disturbing the project timelines. In view of the above, although PPIB achieved significant progress in advancing and implementing upcoming IPPs, however, some potential force majeures beyond the control of project companies/sponsors hampered the overall development pace of few projects. However, in all such cases, PPIB referred matters to the Board and extensions in achievement of various milestones which include issuance of LOI/LOS/FC or RCOD were solicited while remaining within the legal/policy framework and purely on the basis of merit. The projects which were delayed in accomplishing various critical tasks due to multiple reasons are outlined as follows: Project Description 660 MW Thar coal based Engro Powergen 330 MW Thar coal based ThalNova Power Project 330 MW Thar Coal based Thar Energy Limited Power Project 1320 MW Thar coal based Shanghai Power Project 300 MW Imported Coal based Gwadar Power Project Brief description of delay The project was required to achieve COD by June 2019 however, COD was achieved on 10th July 2019 due to the process of extensive testing. Nevertheless, project had already started generating electricity from both units (each comprising 330 MW) in March and April 2019 Project is behind the schedule and not likely to achieve COD in Mar-21. Delays attributed to factors including outbreak of COVID-19 pandemic. Other factors include Sinosure, macroeconomic situation, delays in coal availability. Project is behind the schedule and not likely to achieve COD in Mar-21. Delays attributed to factors including outbreak of COVID-19 pandemic. Other factors include Sinosure, macroeconomic situation, delays in coal availability. The Project is facing issues with regards to water allocation and execution of Water Supply Agreement with Government of Sindh because of which extensions in achievement of FC have been granted by PPIB with the approval of PPIB Board. Such pause may also impact on the overall progress of the project. COIVD-19 factor may also cause disruption project development as potential force majeure. Furthermore, hesitation from Chinese lenders and Sinosure for financing the project is also causing delays. Faced delays in issuance of LOS on part of tariff determination, land acquisition, signing of PPA and grid interconnection & transmission infrastructure issues. However, after partial resolution of some of the issues, PPIB issued LOS to the Project on 23rd August 2019. Thereafter, project is again facing delays regarding execution of Quad-partite PPA. PPIB is coordinating with all the concerned stakeholders for early resolution of the issues enabling to issue PPA and IA which are pre-requisites for declaration of FC. In this regard, PPIB has twice extended FC date with the approval of Board. The outbreak of COVID-19 is also feared to further impact on the progress of project. Project Description 330 MW Thar coal based Siddiqsons Power Project 1320 MW Thar coal based Oracle Power Project 1263 MW RLNG based PTPL Project 700 MW Azad Pattan Hydropower Project 1,124 MW Kohala Hydropower Project Brief description of delay The Project is facing issues with regards to water allocation and execution of Water Supply Agreement with Government of Sindh because of which extensions in achievement of FC have been granted by PPIB with the approval of PPIB Board. This delay may also impact on the overall progress of the project. COIVD-19 factor may also cause disruption in project development as potential force majeure. Project is delayed due to following major reasons: PPIB Board had in-principle approved issuance of NTP and LOI to the sponsors, however, Sponsors could not meet certain technical, financial and legal requirements in their proposal as per Power Policy 2015 and applicable Guidelines for issuance of NTP and LOI. Renewed consents of Power Purchaser (CPPA-G) and NTDC are required as earlier issued NOC/Consents stipulated COD in December 2019 have expired. Fresh approvals of JEWG, JCC of the CPEC and ECC of the Cabinet are also required before processing new proposal of the project. Project is facing delays mainly due to COVID-19 adverse implications and non-execution of agreements as a result, certain other activities/tasks dependent thereupon are also encountering delays. Project is facing delays mainly on part of non-execution of project agreements. Project is facing delays in advancing due to factors which include but not limited to Environment Flow matter and non execution of project agreements. Note: Outbreak of COVID-19 is anticipated to impact the majority of ongoing IPPs, however, IPPs which are at advance stages of construction or about to start construction are more likely to be affected. 17 18

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