Power Projects - the Board of Investment

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TABLE OF CONTENTS
S. #
Description
1
Pakistan Power Sector
Incentives for Investors - Development of
Power Projects
Salient features Transmission Line Policy
2014
Pakistan Power Park, Gaddani, Balochistan
a. Salient Features
b. Conceptual View
c. Indicative Investment Estimates
d. Business Model
e. Feasibility study
f. Investment Opportunities
Thar Coal Mining and Power Generation,
Sindh
Initiatives by Government of Punjab
Investment in Pakistan Power Sector - A
Promising Opportunity
Private Power Infrastructure Board (PPIB) - A
Facilitator
Investment Opportunities - Hydro Power
Projects
 Turtonas-Uzghor Hydro Power Project
 Neckerdim - Paur Hydro Power Project
 Azad Pattan Hydro Power Project
 Chakothi Hattian Hydro Power Project
 Madian Hydro Power Project
 Asrit - Kedam Hydro Power Project
2
3
4
5
6
7
8
8
Page
No.
3
4
5
6-13
14-15
16
17
18
19-31
1
Hydro
Power
Pakhtunkhwa
Hydel Projects,
Completed
9


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
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


Projects
–
Pre-Feasibility
Khyber
32 - 50
Studies
Nil Da Katha,
Bhimbal Katha,
Saiful Maluk Katha,
Balkani,
Chowkel Khwar,
Kedam Khwar,
Gandigar,
Ayun Gol,
Barum Gol,
Mastuj River
Hydel Projects – Through PPP
 Sharmai Hydropower Project, Distt. Dir
 Shogo-Sin Hydropower Project, Chitral
 Shushgai Zhendoli Hydropower Project,
Chitral
11
Contact information
 Board of Investment
 Private Power Infrastructure Board (PPIB)
 Thar Coal and Energy Board
 Energy Department, Government of Punjab
 Pakhtunkhwa
Hydel
Development
Organization
51-52
2
Pakistan Power Sector
3
Incentives for Investors
Development of Power Projects
 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
4
Salient Features
Transmission Line Policy 2014
 List of Transmission System projects to be offered to
Private Sector will be prepared by GOP
 BOOT Model
 Policy to cover Transmission Line & Grid Station projects of
220 KV voltage level and above (EHVAC & HVDC)
 Land & Legal Right of way to be provided by NTDC at no
cost
 Project Term : 25-30 years
 Equity : 18 %
 Transmission utility (NTDC) to pay Transmission Service
Charge in Rs./km/month/circuit
 Exemption from Corporate Income Tax and 5% flat Custom
Duties
 Utility to provide Basic Design & Functional Performance
Specifications
 Standardized Security Package (IA & TSA) One Window
facility by PPIB
5
Pakistan Power Park, Gaddani, Balochistan
Salient Features
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
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7
Conceptual view
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9
Indicative Investment Estimates
Pakistan Power Park: Major Components
 Jetty and related Marine Infrastructure USD500–700 million
 Park’s 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.
10
Business Model
11
Feasibility Study
NESPAK Completed Following Activities for Gaddani Power Park
• Land Ownership Survey
• Topographic Survey
• Construction Material Study
• On-shore
Geotechnical
Investigations
Already
Completed by NESPAK
• Geophysical Survey on-shore
• Seismic Study
• Electric Resistivity Survey
Master plan for Pakistan Power Park completed in collaboration
with specialist foreign and local firms
Feasibility Study of Gaddani Power Park is in Progress
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Investment Opportunities
• 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
13
Thar Coal Mining and Power Generation
Total Potential of Thar 175 billion tons
Average Area of Blocks
100 Sq KM
Average Seam Thickness
10-20 m
Over Burden
114-137 m
Average Stripping Ratio
6.2:1
Fixed Carbon %
14.2-34.0
Volatile matter %
23.1-36.6
Moisture content %
29.6-55.5
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Thar Coal Field Sindh

Thar Coal Field is located in South Eastern part of Sindh
at about 380 kms east of Karachi, spreading over an area
of 9,100 sq. Km

The total potential of Thar is estimated at 175 billion tons
of lignite which is equivalent to 50 Billion TOE (i.e. more
than Saudi Arabia and Iran oil reserves) or 2,000 TCF gas
(68 times higher than Pakistan’s Gas Reserves)

Thar Coal Field is divided into thirteen blocks, out of
which four blocks have been allocated to the following
projects / companies:


Sino Sindh Resources Private Limited (Block I)

Sindh Engro Coal Mining Company (Block II)

Oracle Coalfields, PLC UK (Block VI)

Planning Commission (Block V)
Investors may approach Thar Coal Energy Board (TCEB)
for allocation of Thar Coal block for Mining

Investors may join hands with the existing sponsors of
Thar coal blocks and IPPs interested in developing
Projects at Thar
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Initiatives by Government of Punjab
Government of Punjab planned adding approximately 7200 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)
Triplicate Security Package to be signed amongst the concerned
Provincial Government, Government of Pakistan and the Project
company
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Investment in Pakistan Power Sector
A Promising Opportunity
 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.
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Private Power Infrastructure Board (PPIB)
A Facilitator
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HYDROPOWER
PROJECTS
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Turtonas-Uzghor Hydropower Project
It is expected to be advertised in near future subject to
certain Codal Formalities between Federal Govt. and the
Provincial Government.
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General:
Project Name
: Turtonas Uzghor Hydropower Project
(Raw Site)
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 m3/sec
Plant Factor
: 50%
Estimated Cost
: 87 Mill US$
Current Status
Project is expected to be advertised approval from PPIB Board
PARTICIPATION REQUIRED
Project
Sponsors
through
International
Competitive
Bidding (ICB)
21
Neckerdim - Paur Hydro Power Project
It is expected to be advertised in near future subject to
certain Codal Formalities between Federal Government and
the Provincial Government.
22
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 m3/s
Gross Head
: 341 m
Plant Factor
: 45.8 %
Estimated Cost
:120 Mill US$
Current Status
Project Profile and Pre-Qualification Documents are being
prepared, EOI for development of the project will be solicited
through advertisement in the press shortly.
PARTICIAPTION REQUIRED:
Project
Sponsors
through
International
Competitive
Bidding (ICB)
23
Investors support required in Equity Debt
Financing, EPC and O & M Contracts
Azad Pattan Hydro Power Project
This Project is already awarded to Private investors. They may
requires equity particiaption, EPC contracting etc. They can be
reached directly to seak opurtunity of investment.
24
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
Current Status
Tariff negotiated b/w Sponsors and NTDC
PARTICIAPTION REQUIRED:
Equity Partners
Debt Financing
EPC Contractor
Detailed Design Consultants
Equipment Suppliers
O & M Contractor
25
Chakothi Hattian Hydro Power Project
on Jhelum River
This Project is already awarded to Private investors. They
may requires equity particiaption, EPC contracting etc. They
can be reached directly to seak opurtunity of investment.
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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
Current Status
Feasibility Study has been approved by the Panel of
Experts
Feasibility Level Tariff has been finalized between
Sponsors and NTDC;
NTDC after approval from its Board will forward the case
to NEPRA for final approval
PARTICIAPTION REQUIRED:
Equity Partners, Debt Financing, EPC Contractor
Detailed Design Consultants, Equipment Suppliers
O & M Contractor
27
Madian Hydro Power Project
This Project is already awarded to Private investors. They
may requires equity particiaption, EPC contracting etc. They
can be reached directly to seak opurtunity of investment.
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General
Project Name
: Madian Hydropower Project
Project Company
: Cherat Cement Co. Ltd.
Project Sponsors
: i) CheratCement Co. Ltd.
ii) Shirazi Investment (Pvt) Ltd.
Project Consultant
: FICHTNER GmbH (Germany)
Location
: Distt. Swat, Near Madian Town,
Khyber Pakhtunkhwa
River
: Swat River
Project Cost
: US$ 438 Million as per
Feasibility Study (2008)
Technical
Capacity
: 157 MW
Gross Head
: 214.8 m
Tariff
: US ¢ 8.92/kWh
(Term 30 years at 2008 level cost)
Current Status
Feasibly Study has been completed, The Sponsors
have been advised by PPIB to approach NEPRA for
Tariff Determination.
PARTICIAPTION REQUIRED:
Equity Partners, Debt Financing, EPC Contractor
Detailed Design Consultants, Equipment Suppliers
O & M Contractor
29
Asrit - Kedam Hydro Power Project
This Project is already awarded to Private investors. They
may requires equity particiaption, EPC contracting etc. They
can be reached directly to seak opurtunity of investment.
30
General
Project Name
: Asrit-Kedam Hydropower
Project
Project Sponsors
: Yunus Brothers Group
Project Consultant
: i) RSW International, Canada
ii) NESPAK
Location
: Near Kedam Town, Distt. Swat,
Khyber Pakhtunkhwa
River
: Swat River
Project Cost
: US$ 405.60 million as per
Feasibility Study (2008)
Technical
Capacity
: 215 MW
Gross Head
: 214.8 m
Tariff
: US ¢ 7.83/kWh
(Levelized Tariff for 30 years term at 2008 level)
Current Status
Feasibly Study completed
PARTICIAPTION REQUIRED:
Equity Partners, Debt Financing, EPC Contractor,
Detailed Design Consultants, Equipment Suppliers,
O& M Contractor
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Contacts
Board of Investment
Prime Minister’s Office
Ataturk Avenue, Sector G-5/1, Islamabad, Pakistan.
Tel: 0092-51-9204339, 9207031
Fax: 0092-51-9218325, 9218323
Website: www.boi.gov.pk
Private Power and Infrastructure Board (PPIB)
50 Nazimuddin Road , F7/4 , Islamabad, Pakistan.
Tele: 0092(51) 9100118-129
Fax:
0092(51) 9100131, 9100132
Website: www.ppib.gov.pk
Energy Department,
Government of the Punjab,
Irrigation Secretariat,
Library Road, Old Anar Kali, Lahore, Pakistan.
Phone: 0092 42-99213974-5
Fax: 0092 42-99213906
Website: www.energy.punjab.gov.pk
Sindh Coal Energy Board,
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Government of Sindh
1st Floor, State life Building No.3
Dr. Ziauddin Ahmed Road, Opp: CM House, Karachi, Pakistan.
Tel: 0092-21-99207528-31
Fax: 0092-21-99207534
Website: www.sindhcoal.gos.pk
Pakhtunkhwa Hydel Development Organization (PHYDO)
Plot # 38, Sector B-2, Phase-5, Hayatabad, Peshawar.
Tel: 0092-91-9217330, 9217294, 9217488
Fax: 0092-91-9217295
Website: www.shydo.gov.pk
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