20000331

10 IPPs to start

power generation

before June

ISLAMABAD: At least 10 Independent Power Producers (IPPs) will start generation of 2000 mw power before June this year.

The Power projects which would start functioning are Uch Power Limited, Roucsh, Fauji Kabirwala, Northern Electric, Eashatech, Davis Energen, Japan Power, Saba Coastal, Saba Shipyard Pakistan Limited and power generation systems.

These power projects were issued permission letters during 1994, which mainly focused on thermal power projects.

According to the sources of the Water and Power Ministry, these projects are at the stage of commissioning and expected to be operational shortly.

Some of them have already tested their plants and got reports from experts in which they have given green signal to start production.

The government had issued Letters of Support (LoS) to 34 private power companies with a capacity (net) of 8,340 mw. Out of these, 19 projects with an installed capacity of 3,158 mw achieved financial close and were further processed. Out of these, the following seven projects have been commissioned.

AES Lal Pir (337 mw), AES Pakgen (337 mw) Gul Ahmad Energy (125 mw), Tapal Energy (119 mw), Kohinoor Energy (120 mw), Southern Electric Power (112 mw) and Habibullah Coastal (123 mw). A total installed capacity of power generation of these seven plants is 1273 mw.

These power projects were being set up under power policies announced in March 1994, May 1995, and July 1998. However, the HUB Power Project was set up before the announcement of these three power policies.

The initial focus of the power policies announced in 1994, and 1995, was on the generation of thermal power. However, in the policy, announced in July 1998, the focus was shifted to hydel power generation.

Besides these 10 IPPs, which are to be operational by June, this year, the remaining IPPs have not made any worthwhile headway so far. The Private Power Infrastructure Board (PPIB) has written letters to these projects for clarifying their position as per the agreements signed with them.ÑAPP