N.A.

ZUBERI
MANAGING DIRECTOR
PRIVATE POWER & INFRASTRUCTURE BOARD
February 27, 2014

6
th
PAKISTAN ENERGY FORUM 2014

Pakistan Power Sector Investment Opportunities and
New Initiatives to address power shortages
1


C O N T E N T S
2
Overview of Power Sector of Pakistan
Private Power Projects in Operations
Portfolio of Upcoming Private Power Projects
Bridging demand supply gap A challenge
New initiatives taken to reduce power shortages
Gaddani Power Park
Imported Coal Based Projects at Port Qasim
Sindh Engro Coal Mining Project
Initiatives by Government of Punjab and GoKPK
Incentives for Investors in development of power projects
Investment Opportunities
MW %
Public Sector
Hydel 6,844 29
Thermal 4,829 21
Nuclear 802 3
Total 12,475 53
PAKISTAN POWER SECTOR
TOTAL INSTALLED CAPACITY
3
Public Sector
Hydel, 6844,
29%
Public Sector
Thermal, 4829,
21%
Nuclear, 802,
3%
Private Sector,
11011, 46.88%
Private Sector
IPPs 8,630 37
KESC 2,381 10
Total 11,011 47
Total Installed Capacity 23,486 MW
Private Sector
IPPs 8,630 37
KESC 2,381 10
Total 11,011 47
MARDAN
WARSAK
BANNU
DAUDKHEL
BURHAN
NEW RAWAT
I.S.P.R
MANGLA
TARBELA
GAKHAR
SAHOWALA
K.S.KAKU
RAVI
JAPAN
KEL
N.ABAD
SABA
YOUSAF WALA
VEHARI
KAPCO
ROUSCH
UCH
AES
N.G.P.S M.GARH
GUDDU
LIBERTY
DADU
HALARD
LAKHRA
JAMSHORO
KOTRI
HUBCO
KDA-33
(KESC)
500 kV Grid Station
220 kV Grid Station
500/220 kV Grid Station
Hydel Power Station
Thermal Power Station
IPPs at 220, 500 kV
IPPs at 132 kV
500 kV T/LINE
220 kV T/LINE

(240)
(3408)
(1000)
(107)
(120)
(195)
(1350)
(310)
CHEP
(184)
(355)
(1348)
(695)
HCPC
(126)
(548)
(1655)
(212)
(150)
(850)
(174)
(1200)
GAZI BAROTHA
(1450)
CHASNUPP
GATTI
BUND RD:
M.GARH GUDDU
JAMSHORO
TAPAL
G.AHMAD
PAKISTAN POWER SECTOR TRANSMISSION SYSTEM
4
Gaddani Power
Park
5
PRIVATE POWER PROJECTS IN OPERATION
Number of Capacity Investment
Projects (MW) (Million US$)
Project prior to 1994 Power Policy 1 1,292 1,608
Projects under 1994 Power Policy 14 3,113 3,479
Project privatized from public sector 1 1,638 1,583
Project under 1995 Hydel Policy 1 84 215
Projects under 2002 Power Policy 12 2,530 2,754
Total 29 8,657 9,639
Altern Energy Ltd, Attock 29 Jun 2001
Japan Power Generation, Lahore 135 Jan 2000
Kohinoor Energy Ltd., Lahore 131 Jun 1997
Southern Electric Co., Lahore 136 Jul 1999
Saba Power Company, Lahore 125 Dec 1999
AES Lalpir Ltd., Multan 362 Nov 1997
AES Pak Gen, Multan 365 Feb 1998
Fauji Kabirwala Co., Multan 157 Oct 1999
Rousch Power, Multan 450 Dec 1999
KAPCO, Muzaffargarh 1638 Jun 1996
Attock Gen, Rawalpindi 165 Mar 2009
Atlas Power Ltd., Sheikhupura 225 Nov 2009
Nishat Power Ltd., Lahore 200 Nov 2009
Saif Power Ltd., Sahiwal 229 Apr 2010
Orient Power Ltd., Balloki, Kasur 229 May 2010
Nishat Chunian Power Ltd., Lahore 200 Jul 2010
Sapphire Electric Co. Ltd., Muridke 225 Oct 2010
Liberty Power Tech Ltd. 200 Jan 2011
HUB Power Company Limited, Narowal 220 Apr 2011
Halmore Power Generation Co. Ltd. 225 June 2011
Hub Power Project, Hub 1292 Mar 1997
Uch Power Ltd., Uch 586 Oct 2000
Habibullah Coastal, Quetta 140 Sep 1999
TNB Liberty Power Ltd., Daharki 235 Jun 2001
Tapal Energy Ltd., Karachi 126 Jun 1997
Gul Ahmed Energy Ltd., Karachi 136 Nov 1996
Engro Powergen Qadirpur Ltd., Dakarki 227 Mar 2010
Foundation Power Co. (Daharki) Ltd. 185 May 2011
PUNJAB
BALOCHISTAN
SINDH
Tot. Capacity: 8,657 MW
AZAD JAMMU & KASHMIR
New Bong Escape Hydropower Project 84 Mar 2013
PRIVATE SECTOR PROJECTS IN OPERATION
6
7
Description/ Year
Hydel Coal
Gas/ Dual
Fuel
Oil
Total
(MW)
No. of
Projects
MW No. MW No. MW No. MW No.
2014 - - - - 404 1 - - 404 1
2016 - - - - - - 163 1 163 1
2017 147 1 - - - - - - 147 1
2018 100 1 - - - - - - 100 1
2019 230 2 - - - - - - 230 2
2020 1,560 2 - - - - - - 1,560 2
2022 2,240 3 - - - - - - 2,240 3
Project at FS
Stage
548 1 - - - - - - 548 1
Other Projects 2,123 5 1,200 1 120 1 - - 3,443 7
Grand Total 6,948 15 1,200 1 524 2 163 1 8,835 19
PPIBs PORTFOLIO OF UPCOMING PRIVATE
POWER PROJECTS (IPPs)
BRIDGING DEMAND-SUPPLY GAP A CHALLENGE
8
WAPDA (NTDC) Power Planning has projected a demand of 31,757 MW
by the year 2020.
During Summer 2012, Maximum Power Supply has remained at 14,756
MW (August 2012). Hence an additional 17000 MW shall be required by
the year 2020.
An Investment of USD 20.40 Billion is required within a span of Six Years
(Using the thumb rule of USD 1.2 Million/MW)
Arranging this amount is a very difficult task for GOP/Provincial
Governments, even if other sectors such as health, education etc. are
compromised.
Consolidated efforts needed both from Public & Private Sectors to
bridge Demand- Supply Gap in the System

NEW INITIATIVES TAKEN TO REDUCE POWER
SHORTAGES
9

6,600 MW Pakistan
Power Park, Gaddani
Balochistan
PAKISTAN POWER PARK SALIENT FEATURES
11
The Prime Minister of Pakistan approved the concept of 6,600 Pakistan
Power Park at Gaddani on July 26, 2013
The Pakistan Power Park will have
Dedicated deep sea jetty
2x 660 MWs in Public Sector
8x 660 MWs in Private Sector as IPPs
Transmission Network for evacuation of Power
Common infrastructure facilities of coal conveyer system,
cooling water, switchyard, ash disposal, and residential facilities
etc



Future
Expansions

Future
Expansions
Jetty
660 MW
Public Sector

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660 MW
IPP
660 MW
IPP
660 MW
IPP
660 MW
IPP
660 MW
IPP
Common Water Supply
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Cooling Water Intake
660 MW
Public Sector
660 MW
IPP
Shipping and
Coal Supplier
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Pakistan Power
Park: Typical
Configuration
Subject to
Consultants
review.
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660 MW
IPP
660 MW
IPP
CONCEPTUAL VIEW OF POWER PARK


About 5000
acres of land
will be
required for
Pakistan
Power Park.

GOB to
provide land
as equity in
Project
company.
THE PROJECT SITE
Pakistan Power Management
Company
- Jetty
- Cooling Water
- Land
- Switch Yard
IPPs
CPPA
Coal
Supplier
Service Sharing Agreement
IA
PPA
CSA
GoB
Land
GoP
NTDC
Transmission Line

CSA: Coal Supply Agreement
PPA: Power Purchase Agreement
IA: Implementation Agreement
BUSINESS MODEL
15
Pakistan Power Park: Major Components
Jetty and related marine infrastructure USD 500 700 million
Parks onshore infrastructure USD 100 million
Transmission Line USD 3 4.43 billion
2x660 MW Project in public sector USD 1.8 billion
8x660 MW Projects in private sector USD 7.2 billion
Total USD 13.8 billion

Note: These are very Preliminary and Rough Estimates and will change
considerably as design is finalized and costs are firmed up.

INDICATIVE INVESTMENT ESTIMATES
16
LATEST DEVELOPMENTS
17
The interest of the sponsors in Pakistan Power Park is increasing
Recently the following companies have aggressively pursued their interest in
development of projects in Pakistan Power Park:
Power China and Al Mirqab Qatar (QINVEST) 2 x 660 MW (1
st
Phase)
Samsung C & T Corporation, Seoul, Korea 2 x 660 MW
China Gezhouba Group Corporation , China 3 x 660 MW
Bestway Cement 1x 660 MW
ANC Holding of UAE 1x 660 MW
NUROL Group, Turkey (for BOT) 2 x 660 MW
MOU with QINVEST & China Gezhouba have already been signed
PPIB is also carrying out pre-qualification process of QINVEST for
issuance of LOI for 2x660 MW IPP projects at Gadani Power Park
PAKISTAN POWER PARK FEASIBILITY STUDY
18
NESPAK is at advanced stage of finalizing feasibility study for
Pakistan Power Park
Land survey, topographic survey and revenue mapping of the site
has been completed
Work on hydraulic studies, geotechnical investigations and marine
works is also progressing
Master plan for Pakistan Power Park is being finalized by NESPAK in
collaboration with specialist foreign and local firms

PAKISTAN POWER PARK INVESTMENT OPPORTUNITIES
19
8 x 660 MW power plants in IPP mode on Build, Own &
Operate basis
Construction of deep sea jetty and marine infrastructure
Development of infrastructure of Pakistan Power Park
Construction of Transmission Line
Construction of access roads

2 x 660 MW IMPORTED COAL BASED POWER
PROJECT AT PORT QASIM, KARACHI BY
POWER CHINA-AL MIRQAB CAPITAL (QINVEST)
2 x 660 MW POWER PROJECT AT PORT QASIM, KARACHI
21
A joint venture of Power Construction Corporation of China (Power
China) and Al Mirqab Capital of Doha, Qatar has submitted a proposal
to PPIB for development of 2 x 660 MW imported coal based power
project at Port Qasim, Karachi

The proposed project site is located on the east side of the existing Bin
Qasim Power Station in Eastern Industrial Zone of Port Qasim, Karachi

Currently, the sponsors are in process of completing their Statements
of Qualification (SOQs) for completing pre-qualification formalities
required for obtaining Letter of Intent (LOI) from PPIB.

2 x 660 MW POWER PROJECT AT PORT QASIM, KARACHI
22
Salient Features

Capacity of Power Plant
1,320 MW (Gross Capacity)
1,221 MW (Net Capacity)

No of Units and Configuration
2 x 660 MW (Gross Capacity)

Fuel
Sub Bituminous and Bituminous coal imported from Indonesia, South Africa,
Botswana and Australia

Efficiency
41 % (Gross Efficiency)
38 % (Net Efficiency)

Annual Availability
90%
23
THAR COAL
MINING AND POWER GENERATION PROJECTS
THAR COAL BASED POWER PROJECTS
24
Sindh Engro Coal Mining Company (SECMC) Open Pit Mining at
Thar Coal - Block II

Feasibility completed by SECMC in 2010
Total Lignite reserve in Block II - 2 Billion tons
Exploitable Reserve - 1.57 Billion tons
Average striping ratio is 6.2:1
Investment Estimate - US $ 800 Million

2 x 330 MW Power Generation Project at Thar by SECMC
Interested investors may approach SECMC which is actively
searching for equity partners for the development of 2 x 330 MW
power project


INITIATIVES BY THE GOVERNMENT OF PUNJAB
INITIATIVES BY THE GOVERNMENT OF PUNJAB
26
Government of Punjab has planned adding approximately 6,000
MW in the medium term (3-5 years) to the national grid through
private or public investment in imported coal based power plants
Potential projects include:
2 x 660 MW coal power project at following sites:
Qadirabad (Sahiwal),
Bhikki (Sheikhupura),
Haveli Bahadur Shah (Jhang),
Balloki (Kasur),
Trinda Saway (Rahim Yar Khan)
Mouza Saddan Wali (Muzaffargarh)

INITIATIVES BY THE GOVERNMENT OF SINDH
INITIATIVES BY THE GOVERNMENT OF SINDH
28
Development of 2 x 660 MW coal based power project at Keti Bunder,
Sindh to be scaled upto 5,000 MW

Salient Features

Projects to be developed in IPP mode
Sponsors will be responsible for planning, design, construction,
ownership, operation, financial management and facility
management of the power plant
Development of smaller jetty at the site with transhipping concept
and allied facilities
200 + km rail track from Thar to Keti Bunder
Transmission line from Keti Bunder to Thatta to Jamshoro

Interested sponsors may approach initially GOS and then PPIB for IPPs
for 2 x 660 MW projects
INITIATIVES BY THE GOVERNMENT OF KPK
INITIATIVES BY THE GOVERNMENT OF KPK
30
Government of Khyber Pakhtunkhwa has initiated development of
457 MW hydropower projects at Sharmai, Shushgai, Shogosin and
Koto through PHYDO

One (01) MOU has been signed by Government of Khyber
Pakhtunkhwa for 1,000 MW hydropower projects at different sites in
the following areas:
Swat
Malakand
Hazara
Chitral

Government of Khyber Pakhtunkhwa has initiated around 300 small
Hydro Power plants in the province

Exemption from Corporate Income Tax, Turnover Tax and Withholding Tax, no
Sales Tax, only 5% concessionary Import Duty on plant & equipment not
manufactured locally
GOP Guarantees obligations of power purchaser and provinces
GOP provides protection against Political Force Majeure, change in law and
Change in duties & taxes
Power Purchaser to bear hydrological risk for hydropower projects
GOP allows 20% ROE for indigenous coal based power projects, and 17%
ROE on hydro power projects
Payment of compensation in case of termination due to GOP Event of Default
Tariff adjustments for variation in currency exchange rates and fuel prices
Tariff indexation for inflation (US CPI & Pak WPI)
Government ensures conversion of Pak Rupee & remittance of foreign
exchange for project-related payments
INCENTIVES FOR INVESTORS INTERESTED IN
DEVELOPMENT OF POWER PROJECTS
31
OPPORTUNITIES FOR INVESTORS
Pakistan Power Park at Gaddani, Balochistan
Thar Coal Mining and Power Generation project
Initiatives by Government of Punjab on Coal based projects and
Government of KPK on Hydropower Projects
International Competitive Biddings for establishment of:
100 MW Kotli Hydropower Project
58 MW Turtonas-Uzghor Hydropower Project
80 MW Neckerdim Paur Hydropower Project
Key Projects requiring support in areas of Equity Participation, EPC
Contract, O&M Contract, Electro-Mechanical Equipment Supply, Lenders/
Financiers
640 MW Azad Pattan Hydropower Project
500 MW Chakothi Hattian Hydropower Project
548 MW Kaigah Hydropower Project

32
BACKUP SLIDES
34
35
LAYOUT MAP OF
KOTLI PROJECT
Distance from
Islamabad= 165km
Kotli Town = 0km
SALIENT FEATUES OF KOTLI HPP
General
Project Name : Kotli Hydropower Project
Project Consultants : MWH (USA)
Location : District Kotli, AJ&K
River : Poonch
Project Cost : US$ 169.6 Million as per Feasibility Study
Technical
Capacity : 100 MW
Energy : 475 GWh
Gross Head : 84.6 m
Levelized Tariff : US 5.45/KWh (as per Feasibility Study for 30 years)
Current Status
EPC level tariff negotiations between Sponsors and NTDC is in process

37
Project advertised on Dec 2, 2013

PARTICIAPTION REQUIRED:
Project Sponsors through International Competitive Bidding
(ICB)

CURRENT STATUS Kotli Hydro Power Project
LAYOUT PLAN OF TURTONAS-UZGHOR HPP
38
Weir/Dam

Powerhouse

City/ Town

Tunnel
Legend
SALIENT FEATURES OF TURTONAS-UZGHOR
HYDROPOWER PROJECT

General:
Project Name Turtonas Uzghor Hydropower Project
Location Golen Gol River near Uzghor Village
(around 33 km from Chitral Town)
Technical:
Capacity 58 MW
Gross Head 351 m
Mean Annual Energy 254 GWh
Project Type Run-of-River
Design Discharge 20.0 m
3
/sec
Plant Factor 50%
Estimated Cost 87 Mill US$


39
40
Project is expected to be advertised by end of Dec 2013

PARTICIAPTION REQUIRED:
Project Sponsors through International Competitive Bidding (ICB)

CURRENT STATUS TURTONAS UZGHOR HPP
LAYOUT PLAN OF NECKERDIM-PAUR HPP
41


Powerhouse

City/ Town

Legend
General
Project Name : Neckerdim-Paur HPP (Raw Site)
River : Yarkun-a tributary of Mastuj River
Location : Project area is 70 km from Mastuj town
Distance : 178km from Chitral town

Technical
Capacity : 80 MW
Energy : 321 GWh
Project Type : Run-of-River
Design Discharge : 30 m
3
/s
Gross Head : 341 m
Plant Factor : 45.8 %

Estimated Cost : 120 Mill US$



SALIENT FEATURES NECKERDIM-PAUR HPP
42
43
Project is expected to be advertised by end of Dec 2013

PARTICIAPTION REQUIRED:
Project Sponsors through International Competitive Bidding
(ICB)

CURRENT STATUS NECKERDIM - PAUR HPP
Investors Support in Equity Debt
Financing , EPC and O & M contracts
LOCATION OF AZAD PATTAN
ON JEHLUM RIVER
Mangla
PH
N
Garhi
Habibullah
640 MW Azad
Pattan HPP
720 MW
Karot HPP
500 MW
Chakothi Hattian
HPP
PUNJAB
Khyber Pakhtunkhwa
AJ&K
147 MW
Patrind HPP
M
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R
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45
General

Project Company : Alamgir Power Pvt Ltd
Project Sponsors : Alamgir Power (Pvt.) Ltd (Main),
Project Cost : US$ 1446.7 Million as per Feasibility Study
Project Consultant : Scott Wilson

Technical
Capacity : 640 MW
Energy : 3075 GWh
Levelized Tariff : US 7.7125/kWh (as per Feasibility Study for 30 years)
Expected COD : June 2020







SALIENT FEATURES OF AZAD PATTAN HPP


46
47
Tariff negotiated b/w Sponsors and NTDC; and is under approval
by NEPRA
PARTICIAPTION REQUIRED:
Equity Partners
Debt Financing
EPC Contractor
Detailed Design Consultants
Equipment Suppliers
O & M Contractor

CURRENT STATUS-AZAD PATTAN HPP
LOCATION OF CHAKOTHI HATTIAN
ON JEHLUM RIVER
Mangla
PH
N
Garhi
Habibullah
640 MW Azad
Pattan HPP
720 MW
Karot HPP
500 MW
Chakothi Hattian
HPP
?
PUNJAB
Khyber Pakhtunkhwa
AJ&K
147 MW
Patrind HPP
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R
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48
General
Project Sponsors : Suhail Jute Mills Ltd.,
Colony Sarhad Textile Mills
Project Cost : US$ 1176.5 Million as per Feasibility Study

Technical

Capacity : 500 MW
Energy : 2410 GWh
Levelized Tariff : US 7.89/kWh (negotiated F.S for 30 yrs.)

Expected COD : December 2020






SALIENT FEATURES OF
CHAKOTHI HATTIAN HPP






49
50
Tariff has been negotiated b/w Sponsors and NTDC; which tariff is
under approval be NEPRA (Regulator)
PARTICIAPTION REQUIRED:
Equity Partners
Debt Financing
EPC Contractor
Detailed Design Consultants
Equipment Suppliers
O & M Contractor

CURRENT STATUS-CHAKOTHI HATTIAN HPP
LOCATION MAP OF KAIGAH HPP
Kandiah River
Weir
LOCATION MAP OF KAIGAH HPP
General
Project Sponsors : Telecom Valley Pvt Ltd (Main Sponsors)
Associated Technologies (Pvt) Ltd
Project Cost : US$ 822 Million (Estimated)

Technical
Capacity : 548 MW
Energy : 2170 GWh (Estimated)
Levelized Tariff : X

Expected COD : December 2020
SALIENT FEATURES - KAIGAH HPP
Feasibility Study in progress

INVESTORS PARTICIAPTION
Equity Partners
Debt Financing
EPC Contractor
Detailed Design Consultants
Equipment Suppliers
O & M Contractor

CURRENT STATUS - KAIGAH HPP
INVESTMENT IN PAKISTAN POWER SECTOR -
A PROMISING OPPORTUNITY
55
Due to growing power demand, there is dire need of power capacity
addition
Pakistan has successfully attracted investment worth billions of dollars
from private sector for power generation
World renowned power players are already operating in Pakistan.
One-Window facility provided at Federal level by PPIB
Federal Government guarantees the performance of the power
purchaser and provinces
Federal Government provides protection against political force Majeure
and change in law
Concessionary import duties and tax free regime for power plants
developed under the Policy

CONCLUSION
56
You are welcome to avail investor-friendly
profitable business opportunities in
Pakistans Power Sector
STEPS REQUIRED TO TACKLE POWER SHORTAGES
57

Short Term Solutions
Medium Term Solutions
Long Term Solutions

58
GOVERNANCE/ MANAGEMENT MEASURES
Electricity bills of provinces and defence installations be adjusted at
source with federal government
Development of Integrated Energy Plan
Strict Implementation of the decisions through proper coordination
and harmonized efforts by various energy sector entities and
stakeholders especially provincial and federal governments
National Energy Efficiency Standards may be developed with the
consensus of relevant stakeholders including but not limited to
Enercon, NEPRA, OGRA, etc. in order to promote efficient usage and
reduce wastage of energy resources in general and electricity in
particular
Reduction in system losses / improvements in revenue collection


SHORT TERM
59
GOVERNANCE/ MANAGEMENT MEASURES
Permanent resolution of Circular Debt issue through strict
implementation of measures like:
Narrowly target tariff subsidies only to lifeline consumers who
consume up to 100 units per month and provide this subsidy in
the federal budget
Notify electricity tariffs according to the average system-wide
cost
Power dispatch to be strictly according to plant efficiency and
generation cost
Supply gas to all power plants that can run on natural gas to
minimize generation on expensive fuels
Reduce distribution and transmission losses and improve
collection rates
Improvement in Law & Order situation


SHORT TERM
60
Key to resolution of circular debt is to reduce reliance oil and conversion
of oil based capacity to coal (70% imported and 30% local) for which:
GENCOs be directed to convert their steam based units to coal as
Planning Commission has already approved the concept clearance
NEPRA may announce tariff for coal conversion for interested IPPs
Industrial sector be encouraged to use coal as a fuel instead of oil &
gas
Captive Power Units should be incentivized to switch from oil/gas to
coal
SHORT TERM CONVERSION OF STEAM TURBINES
OPERATING ON FURNACE OIL TO COAL
61
Hydel based IPPs be supported through:
Feasibility Studies (including Engineering Design)
Creation of a Hydro Development Fund
Sugar Mills Co-generation Policy, recently approved by the GoP and
being administered by AEDB, be widely circulated and marketed to
obtain the desired results i.e. tapping of above 2,000 MW power
generation potential of sugar mills
Upfront Tariff announced by NEPRA for local/ imported coal based
power projects be reviewed to make it realistic
MEDIUM TERM
62
CONTROL OF LINE LOSSES
Technical: Too much high Technical Line Losses due to dilapidated
transmission and distribution system are not only wasting a lot of
power generated but adding a lot in building up of Circular debt.
Attention is needed towards system repair, replacement (where
necessary) and augmentation
Theft: Losses due to alleged theft are also resulting in building up of
circular debt and wastage. Metering cum Mapping of areas based on
power supply and revenue collection coupled with community
involvement (mass feeder disconnection cum higher level load-
shedding in low revenue areas) added by smart grid and pre-paid
meters by practiced
MEDIUM TERM
63
Development of bigger dam cum power generation
projects in public sector
Expeditious development of 6,600 MW imported coal
based Pakistan Power Park at Gaddani, Balochistan
Expeditious development of Thar coal based power
projects
LONG TERM
64
For 6,600 MW Pakistan Power Park and other upcoming
projects in southern part of the country including Thar coal
based power projects, power evacuation would be the major
issue therefore construction of new transmission lines is
envisaged
GoP is expected to announce an investor friendly Private
Transmission Lines Policy to promote development of power
evacuation network in private sector
LONG TERM POWER EVACUATION NETWORK
REVIEW OF UPFRONT TARIFF
65
66
SUMMARY OF UPFRONT COAL TARIFF
Levelized Tariff
Imported Coal
Cents/kWh
Local Coal
Cents/kWh
Foreign
Financing
Local
Financing
Foreign
Financing
Local
Financing
200 MW 8.2753 9.6042 8.2927 9.6448
600 MW 7.7784 9.1554 7.7931 9.1992
1000 MW 7.4922 8.7421 7.4900 8.7552
This tariff is applicable uptil June 30, 2019
Project life is 30 Years
Tariff for small coal based power plants (upto 50 MW) will be announced later
REVIEW OF UPFRONT TARIFF BY NEPRA
67
On 6
th
June 2013, NEPRA announced following Upfront Tariffs for coal projects.







The investors have reported that capital costs, operating & maintenance costs
are low and efficiency assumed by NEPRA under various scenarios is too high.

Ministry of Water and Power based on the feedback of investors have
requested NEPRA to review the Upfront Tariffs for following items of Tariffs:
For increase of Capital costs,
For Increase of Operation and maintenance costs,
For realistically lowering of Efficiency
Inclusion of Missing Items of Return on Equity During Construction
Reliance on Plant Factor of 84% instead of conventional 60%





Description
Local Financing Foreign Financing
200 MW 600 MW 1,000 MW 200 MW 600 MW 1,000 MW
Efficiency % 39.5 42 42 39.5 42 42
Project Cost (Million
USD / MW)
1.54 1.48 1.34 1.37 1.28 1.16
REVIEW OF UPFRONT TARIFF
68
Ministry of Water & Powers request (contaminating of 4 massive volumes) to
NEPRA under Section 31(4) of the NEPRA Act 1997 for review of Upfront Tariffs
has been relied on the following documents;
Updated Capital Cost Estimate for Utility Scale Electric Generating Plants April 2013
prepared by United States (US) Energy Information Administration (EIA)
Projected Costs of generating Electricity, 2010 Edition, by IEA/ NEA
Feasibility Study conducted by AES for 1200 MW coal based project at Gadani
NEPRA determined tariff for AES Project at Gadani on 26
th
November 2009
Feasibility Study conducted by Mitsui for imported coal based project at Gadani
Feasibility Study of Jamshoro 2x 660 MW Power Project
IEA Coal Advisory Board Report titled Power Generation from Coal
A Comparison of PC, CFB and IGCC Technologies for Basin Electric Power Cooperatives
Dry Fork Station by CHM2Hill
CMD paper titled Coal Power Technologies
the Gujarat Electricity Regulatory Commission (GERC) issued regulations for Terms and
Conditions of Tariff






EXAM OF PROPOSAL AND
PREQUALIFICATION OF
SPONSORS
FINANCIAL
CLOSING
NEGOTIATIONS / FINALIZATION OF
PROJECT AGREEMENTS
(IA, PPA, FSA/GSA)
APPROVAL BY
PPIB
REGISTRATION WITH PPIB
BY DEPOSITING $200
ISSUANCE OF LOI
BY PPIB
ISSUANCE OF LOS
BY PPIB
COMMERCIAL
OPERATIONS
SUBMISSION OF PROPOSAL
ALONG WITH FEES $20,000
SUBMISSION OF PG @ $1000 / MW
SUBMISSION OF
PG @ $5000 / MW (FOR LOS)
ALONG WITH FEES $80,000
TARIFF DETERMINATION &
ISSUANCE OF GENERATION LICENCE
BY NEPRA
SUBMISSION OF PETITIONS TO NEPRA FOR
(i) OPTING UPFRONT TARIFF,
(ii) GENERATION LICENCE
PROJECT IMPLEMENTATION PROCESS UNDER UPFRONT TARIFF REGIME
69
70
Reduction of demand through Energy Conservation and Load
Management
Priority of supplies of electricity be assigned by DISCOs with lower
load shedding in areas with improved collection and lower losses
Pilferage / Theft Reduction
Pre-paid smart meters be introduced in DISCOs
Import of electricity from Kyrgyz Republic/ Tajikistan (CASA-1000),
Iran and India
Creation of Infrastructure Fund with support of donors to provide
financing to private power projects

IMMEDIATE MEASURES TO ADDRESS POWER SHORTAGES
71
Many of the highly efficient power plants in private and public sector
are not being operated optimally primarily due to non-availability of
gas. Options of importing LNG/LPG for these plants through
SSGCL/SNGPL or directly by the power plants may be exercised on
priority
Sectoral allocation of natural gas to be done on the basis of
economic value. Power sector in general and most efficient CCGT
based power plants be given priority in firm allocation of gas
Private Sector be encouraged to not only participate in generation,
but also in transmission and distribution

IMMEDIATE MEASURES TO ADDRESS POWER SHORTAGES
72
Conversion of existing Oil Fired Thermal Power Stations on coal to
obtain cheaper electricity
New power projects be initiated in public, private sectors and public-
private partnership
Import of LNG to cater for gas shortages

IMMEDIATE MEASURES TO ADDRESS POWER SHORTAGES
73
Development of infrastructure for various sectors in general and
power sector in particular
Maximum utilization of indigenous energy resources (hydel, coal,
gas) for power generation
Development of Indigenous expertise in technology / manufacturing
Improvement of Law & Order situation
Resolution of Circular Debt issue on long term / sustainable basis
Deregulating and decentralizing the energy sector may be done by
allowing small power producers to sell power directly to consumers
through the distribution systems of DISCOs
A wholesale market for electricity may be created by decentralizing
and privatization


MEASURES TO ADDRESS POWER SHORTAGES
LONG TERM
Steering Committee
Overseeing
Under Prime Minister
Transmission Line
Gaddani-Lhr. Fsd 600 KV HVDC
NTDC
Power in Public Sector
2 x 660 MW & Import of Coal
Subsidiary of PPPMCL
Park Infrastructure & Common Facilities
Jetty, Cooling Water, Land
Development, Security,
Communications cum road
infrastructure, Drinking Water, etc
PPPMCL
Power in Private Sector
8 x 600 MW & Import of Coal
IPPs / PPIB
PAKISTAN POWER PARK
MONITORING
74