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Investor Presentaiton

ANNUAL REPORT P Private Power and Infrastructure Board ANNUAL REPORT Private Power and Infrastructure Board In accordance with the decision of the Board, PPIB issued TLOS to 7.08 MW Riali SHPP on 16th October 2019 and 8 MW Kathai on 20th November 2019. Both projects are progressing for achievement of Financial Close for which PPIB is facilitating sponsors of these projects. Furthermore, there are several other SHPPS which are in the process for issuing TLOS by PPIB and soon PPIB would undertake more SHPPS under Power Generation Policy 2015 for processing. This initiative will attract and encourage potential investors in developing small to medium size hydropower power projects in the country particularly in AJ&K, GB and Punjab which will further augment clean, green and cheap generation capabilities in the country. This will also enhance the confidence of investors in investing in indeginous/renewable hydropower Projects of country. Increased Prioritization of Thar Coal for Power Generation The present portfolio of Thar coal based power generation projects comprises of seven projects of 4,950 MW which are at different stages of development. The generation capacities of these projects range between medium size of 330 MW to mega size of 1,320 MW which are planned to be completed during 2019-2023. Currently, majority of these projects are at advance to very advance/final stages of development while there is only one project which is at initial stage of processing, whereas rest of the projects are at post LOS stages; some are about to achieve FC while few other are under construction. Similarly, 660 MW Thar coal based Engro Power has already been commissioned and supplying electricity. The biggest challenge before PPIB would be to ensure smooth and speedy implementation of upcoming projects with minimum impact of COVID-19 on their timelines. Current status of Thar coal based Power projects is appended in the following image: It is indubitable that Thar coalfield has potential to be financially profitable, technically reliable, socially responsible, and capable of meeting the power and energy needs of Pakistan for many decades to come. In pursuit of attaining energy security, PPIB would continue to promote Thar coal for power generation and is fully prepared in this regard to implement new projects in accordance with the outcome of demand-supply study of the GoP to avoid less or surplus electricity. Completion of Ongoing Projects based on Imported Coal and RLNG PPIB in line with the policy of the GoP, is already operating with least focus on imported fuels for power generation and processing only those projects which were conceived earlier to the said policy for honouring contractual obligations. Currently, PPIB is processing only one RLNG based project of 1,263 MW located in Jhang and one imported coal based project of 300 MW located in Gwadar. Both these projects are at advance stages of implementation. The RLNG based project is under construction while coal project is under Financial Closing. It is imperative to highlight that although the imported coal based power generation projects which have been commissioned and those which will be commissioned in near future also have the capability of blending some portion of Thar coal upon its availability on commercial basis. Current status of imported fuels based (RLNG & Coal) Power projects is appended in the following image: Timelines of Imported Coal & RLNG based IPPS 117 Oracle Shanghai Siddiqsons Timelines of Thar Coal based IPPS Under Issuance of NTP/LOI Under FC Under FC Lucky Under Construction Under FC Thal Nova Thar Energy Engro Under Construction Commissioned on 10.07.19 2019 2021 2022 2023 Imported Coal based 300 MW Gwadar Power Project Under FC RLNG based 1,263 MW PTPL Power Project Under Construction prior to FC - First Unit to come online by Dec-20 2020 2021 2022 PPIB through expeditions processing of both projects would ensure early completion of these projects, however, both projects are facing delays mainly on part of signing of power purchase agreements due to which so far both projects have not been able to achieve Financial Close. There is also a possibility of marginal variation in completion schedule due to COVID-19. 118
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