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 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 6 7 Conceptual view 8 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 12 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 14 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 15 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 16 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. 17 Private Power Infrastructure Board (PPIB) A Facilitator 18 HYDROPOWER PROJECTS 19 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. 20 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. 26 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. 28 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 31 32 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, 33 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 34