20000216

Hydro power projects

may be offered

to private sector

KARACHI: Private Power and Infrastructure Board (PPIB) is likely to offer 1,600-mw hydro power projects in the NWFP and Azad Jammu and Kashmir to private sector through competitive bidding.

The proposed hydro power projects will be the first in the private sector coming on the back of a three-year ban on new thermal power generation projects in the country.

The PPIB has already completed technical evaluation of the six projects with the help of Deutsche Gesellschaft Fur Technische Zusammenarbeit (GTZ) Gmbh.

The names of the projects are being kept secret until a formal announcement by the appropriate authorities. However, it has been learnt on good authority that these proposed projects range from 20-mw to 600-mw.

A senior official of the Ministry of Water and Power on condition of anonymity said that the PPIB was instructed to process the hydel projects early last year soon after the sites were identified by the provincial government and the AJ&K.

"In the proposed areas ground elevation falls sharply over relatively short distances and existence of many rivers, streams, rivulets provide the basic wherewithal for small hydel projects.

Besides, that, the areas where such projects are feasible, also happen to be short of energy supplies and rapid deforestation is causing serious ecological damages," the official said.

He said that power supply to NWFP's remote hilly areas, which are difficult to be connected with the grids, could best be made through the establishment of medium and semi-large hydel projects.

This is for the first time in the country that provinces have been authorised to identify project sites, shortlist the prospective investors, award contract for power generation, distribution and discuss other terms and conditions of the projects.

However, the government would extend loan guarantees for the private hydel power projects. National Power Regulatory Authority would act as the regulator for financing PPA and issuance of licenses to the private operators for hydel generation and distribution.

According to the product range information of projects, such types are designed to produce electricity and their capacity, for non-dam projects, could range from 20-mw to 600-mw, while even relatively small dams would have a power generating capacity of about 300-mw to 600-mw. This excludes facilities for irrigation of 5,000 to 4,000 hectares of land.

According to Wapda data NWFP and Northern Areas electricity requirements are likely to increase from 7,695-gwh in 1997/98 to 12,632-gwh in 2002/2003.ÑFortuna