ISLAMABAD: The Board of the Private Power and Infrastructure Board (PPIB) has cast uncertainty over the future of around a dozen renewable energy projects — including hydropower and solar — due to both declared and undeclared reasons.
A key factor cited is the pending finalization of the Indicative Generation Capacity Expansion Plan (IGCEP) 2025–35, sources told Business Recorder.
This status was revealed by PPIB Managing Director Shah Jahan Mirza in a compliance report shared with the board during its meeting last week.
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On a way forward for 700.7 MW Azad Pattan Hydropower Project, AJK/Punjab, the Board had decided that in view of the peculiar circumstances surrounding the project and until final outcome of the “CPEC energy cooperation projects list adjustment joint study” to be approved by the Joint Cooperation Committee (JCC) of the CPEC and Federal Government, the Board allowed that status quo regarding the 700.7 MW Azad Pattan Hydropower Project be maintained.
In the meanwhile, the request of the Company for further extension in the Financial Close date under the Letter of Support (LoS) is put on hold provided, however, the company shall cause the performance guarantee to be valid during such period as will be notified by the PPIB.
The project company has been intimated about the board decision.
In view of the peculiar circumstances surrounding the project and until final outcome of the “CPEC energy cooperation projects list adjustment joint study” to be approved by the Joint Cooperation Committee (JCC) of the CPEC and Federal Government, the extension already approved in the deadline of FC in 144th board meeting till September 30, 2027 for 1124 MW Kohala Hydropower project stands recalled.
In the meanwhile, status quo is to be maintained, provided however, the company shall cause the performance guarantee to be valid during such period as will be notified by PPIB. The project company has been intimated about the board decision.
The Chief Executive Officers of both the projects have written letters to the Prime Minister and other concerned, expressing concerns on the government’s decision.
8 MW Kathai Hydropower Project: the PPIB Board approved the following; (i) the LoS of the company will be promptly terminated and its performance guarantee will be returned subject to signing of Deed of Release and payment of applicable processing fee under PPIB Fee and Charges Rules 2018 (as amended); and (ii) the company and the GoAJ&K may mutually agree and settle the terms for reimbursement of reasonable cost to the company and/or purchase of feasibility study by GoAJ&K without any liability or obligation on the part of GoP/PPIB.
According to PPIB, the project termination is underway by signing a “Deed of Release” with the sponsors.
On way forward for 11.52 MW and 10 MW Solar PV Projects by Access Solar (Private) Limited and Access Electric (Private) Limited, the PPIB Board allowed PPIB management to officially notify the expiry of the LoSs issued to Access Solar (Pvt) Ltd (ASPL) and Access Electric (Pvt) Ltd (AEPL).
The sources said, pursuant to the board’s decision, the PPIB has notified the expiry of the LoSs.
Safe Solar’s request for the return of performance guarantee for its 10 MW Solar PV Project: the PPIB Board approved the return of SSPPL’s PG in full, without deduction of the processing fee, subject to the signing of a Deed of Release by SSPPL. The project termination process is underway by signing a Deed of Release’ with the sponsors.
Approval for extension in validity period of Letter of Intent (LoI) issued to Trans-Atlantic Energy Private Limited (TAEPL): The PPIB Board deferred the decision on the LoI extension for TAEPL until approval of the upcoming IGCEP. Once renewable energy capacity additions are confirmed, a comprehensive policy decision regarding LoI extensions for TAEPL and other similar RE projects shall be made collectively in holistic and informed manner. In the meantime, TAEPL shall ensure that the bank guarantee remains valid until a final decision on the LoI extension is made.
According to sources, in compliance with the decision of the Board, the case of TAEPL will be placed before the board after approval of the IGCEP by NEPRA. Meanwhile, as directed, TAEPL has kept its bank guarantee intact, and the extended bank guarantee with validity up to October 30, 2026 has been received.
The PPIB Board approved the following: (i) status quo will be maintained in respect of three hydropower projects (640 MW-Mahl, 450 MW Athmuqam and 82.25 MW Turtonas-Uzghor) till the time IGCEP 2025-35( upcoming IGCEP) is approved by Nepra, ie, no further extension in the timelines or relevant milestones and/or validity of LoIs will be issued; (ii) Once IGCEP 2025-35 is approved and policy decision at government level is made, after thorough consultation with all concerned stakeholders, a suitable proposition for way forward in respect to three hydropower will be submitted to the Board for consideration ; and (iii) the sponsors/project companies of three HPPs( 640 MW-Mahl, 450 MW Athmuqam and 82.25 MW Turtonas-Uzghor) shall keep the performance guarantees alive until a final decision by competent forum regarding processing of these three HPPs.
The sources said that respective project companies/sponsors have been intimated about the Board decision for information, record and necessary action.
The Board also approved and authorized signing/execution of the GoP Implementation Agreement (IA) with Riali Hydropower Company (Private) Limited, however, further implementation of the project will be dependent upon approval of Nepra in IGCEP 2025-35 as committed.
Copyright Business Recorder, 2025
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