ISLAMABAD: The Private Power and Infrastructure Board (PPIB) has reportedly communicated revised Commercial Operation Date (COD) of 640 MW Mahl hydropower project to National Transmission and Despatch Company (NTDC), well-informed sources told Business Recorder.
The project is located on River Jhelum at the boundary between AJ&K, Punjab and Khyber Pakhtunkhwa, and is being developed by Mahl Power Company (Pvt) Limited under the provisions of Policy for Power Generation Projects 2002. China Three Gorges South Asia Investment Ltd (CSAIL) is the main sponsor of the Project Company.
Sharing the details, sources said that the PPIB Board approved extension in the milestones of the Letter of Interest (LoI) of 640 MW Mahl hydropower project from April 2, 2023 to December 31, 2024 on the basis of Single Performance Guarantee subject to the following: (i) the Project Company shall keep the Bank Guarantee valid for three months beyond the allowed period of extension of the LoI; (ii) the timeline for the Project Company to get Letter of Support (LoS) from PPIB will stand extended till the extended timeline of the LoI; (iii) the COD of the Project in the next iteration of the Integrated Generation Capacity Expansion Plan (IGCEP) will be adjusted according to the extended LoI period; and (iv) the payment of LoI extension fee by the company will be applicable under PPIB (Fee and Charges) Rules.
The sources said, the Board formulated a committee under representative of GoPunjab with relevant senior level member(s) from PPIB to be nominated by MD PPIB to review and, if required, rationalize the extension of LoI/LoS fees under (Fee and Charges) Rules of PPIB.
The sources further stated that the Project Company has extended the Bank Guarantee up to March 31, 2025. Formal issuance of extension in the LoI will be issued upon clearance on fee matter by the PPIB Board. Revised COD of the project according to the extended LoI period has been communicated to NTDC for consideration in the next iteration of IGCEP.
The company requested for fee waiver which is being reviewed by the Committee constituted by the Board.
The company completed the feasibility study of the project which was approved by POE on January 2, 2017. Subsequently, feasibility stage tariff was determined by NEPRA on January 23, 2019. After determination of feasibility stage tariff, PPIB in a letter of April 15, 2019 advised the Project Company to fulfil pre-requisites for LoS issuance.
Copyright Business Recorder, 2024