Investor Presentaiton

ANNUAL REPORT P Private Power and Infrastructure Board ANNUAL REPORT Private Power and Infrastructure Board Development of Robust Transmission Line Network As discussed in the previous chapters, PPIB is actively processing the ±660 kV Matiari-Lahore HVDC Transmission Line Project which is likely to be completed within stipulated timeline of March 2021. With the support of relevent stakeholders, all out efforts are being made by PPIB to make this project operational concurrently with those power projects which are planned to be connected with this project. With the GOP's enhanced focus on energy security for reliable access to energy resources at affordable economic, financial, environmental and social cost; concerted efforts for private sector resource mobilization are necessary for large infrastructure projects. Considering the large capacity additions planned in electrical generation system, the GOP / PPIB are poised to materialize plans for establishment of new EHV transmission line projects through conduct of first International Competitive Bidding (ICB), pursuant to provisions of the TL Policy 2015. In this respect, the Planning Commission, Ministry of Planning, Development & Reform had earlier communicated Minutes of Central Development Working Party (CDWP)'s meeting held on 24th May 2018, wherein the CDWP inter alia constituted a Steering Committee comprising members from Planning Commission, Ministry of Energy (Power Division), NTDC & PPIB for identification of list of transmission line projects and for overseeing preparation of the security package to conduct ICB. So far nine (09) meetings of the Steering Committee have been held on the matter. Since it would be the first ever Levelized Tariff based ICB for award of transmission line project(s) to private sector, preparation of standardized Request for Proposal (RFP) along with a bankable set of Security Package Documents (SPDS) including Implementation Agreement (IA), Transmission Services Agreement (TSA), Operation & Maintenance Agreement (O&M), Land Lease and Right of Way Agreement (LLA) as required for such transactions, are of utmost importance. The Terms of Reference (TORS) of the Steering Committee also include inter-alia seeking donor's assistance. Therefore, on the request of PPIB, the Steering Committee initiated exploring the possibility of International Donor's assistance such as World Bank and USAID, for the whole exercise leading up to the conduct of ICB and award of project(s) to the successful bidder(s). The matter was therefore presented in 125th Meeting of PPIB Board held on 29th August 2019 wherein PPIB Board's approval / permission was sought regarding finalization of TORS (in consultation with Planning Commission, NTDC & USAID/SEP) for engagement of Consultant Firm by USAID/SEP for the initiative, signing of Task Sustainability Plan (TSP) along with NTDC for acquiring USAID/SEP assistance, and processing of the two candidate projects as recommended by NTDC and approved by the Steering Committee however the Board did not agree to the proposed technical/financial support by USAID-SEP for the said initiative. In the meanwhile, International Finance Corporation (IFC), a member of World Bank Group, approached, Planning Commission and PPIB to offer transaction advisory services for conduct of ICB. The IFC also discussed collaboration with USAID/SEP for accomplishment of the desired objective of implementing transmission line projects through private sector through ICB under the TL Policy 2015 during a meeting held on 30th September 2019 at Planning Commission which was participated by IFC, USAID, SEP, PPIB and Planning Commission. In light of protracted discussions held during meeting at Planning Commission, the USAID shared a revised TSP including roles of USAID-SEP, IFC, PPIB, and NTDC & Planning Commission. 119 The transaction structure along with the roles and responsibilities of stakeholders for end-to-end services, as presented by IFC and USAID/SEP, was considered by PPIB Board in its 126th meeting held on 21st November 2019 and in-principle approval of the PPIB Board was sought to work upon the evaluation / finalization of “Financial Advisory Services Agreement - FASA" with IFC and the TSP with USAID-SEP, IFC and NTDC to conduct first-ever ICB for transmission line project, covering development of required framework and the project documents. The Board did not grant permission to PPIB to engage USAID/IFC for the aforesaid services. The decision of the Board is as follows: i. Board directed PPIB to initiate the process of inviting EOI and to hire the required consultancy/advisory expertise for conduct of first ICB for Transmission Line and SS/GS or CS Projects, and for development of whole framework including EOI, RFP and Security Package Documents, etc., in collaboration with NTDC; ii. Board further advised PPIB to arrange funds for the required services / assignments either through PSDP or its own resources. In pursuance to the aforesaid Board decision, PPIB would initiate the process of hiring a suitable lawyer / legal consultant for preparation of the required documents and provision of any incidental services. Accordingly, PPIB vide letter dated 28th January 2020 while conveying decision of PPIB Board to Planning Commission, requested to arrange a list of doable candidate projects, supported by relevant information/data / studies from NTDC, as per the provisions of the TL Policy 2015, duly approved by NTDC Board, for conduct of first ICB for transmission line projects through private sector. New Proposals based on Gas for Power Generation Certain new proposals based on low Btu/low heating value gas from Mari gas field /Hatim fields have been proposed to PPIB by relevent E&P Companies under the provisions of Power Generation Policy 2015. Plant-wise introduction and current status of these new proposed projects is as appended below: (1) 180-280 MW Gas based Combined Cycle IPP project at Daharki by Mari Petroleum Company Limited Brief introduction: > : Mari Power Generation (Pvt.) Limited Project Name : Mari Power Generation Project > Project Company/Sponsor(s) : Mari Petroleum Company Limited (MPCL) > Proposed SPV > Proposed Capacity : 180 MW > Proposed Fuel > Technology Proposed Location > Proposed Indicative Tariff Proposed PPA Term V V V : Low Btu Gas (approx 475 Btu/scf) from Mari Gas Field : Combined Cycle Gas Turbines (CCGT) : Daharki, Sindh : Approx. US cents 6/kWh : 25 years 120

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