Upfront tariff of MSW power projects determined at 9.8257 cents per unit

ISALAMABAD: Nepra has determined the upfront tariff of Municipal Solid Waste (MSW) Power Projects at 9.8257 cents per unit for 25 years.

The regulator came up with the tariff keeping in view its decision in Suo Moto Review Proceedings of the Upfront Tariff determination dated January 15, 2018 for Municipal Solid Waste Power Projects.

The tariff will be applicable for 25 years from COD (commercial operation date) of the project. This upfront tariff has been worked out on the basis of the interest rate of 6% being offered under SBP scheme. In case of commercial local financing, the tariff shall be computed using applicable KIBOR plus a premium of 300 basis points.

In case of commercial foreign financing, the tariff shall be computed using applicable LIBOR plus a premium of 450 basis points. In case negotiated rates or spread is less than the said limits, the savings shall be shared by the power purchaser and the power producer in the ratio of 60:40 respectively. The power producer shall submit relevant authentic documentary evidence to the Authority, for the aforesaid adjustment within 15 days of COD of the relevant company. In case the premium on LIBOR/KIBOR is higher than that mentioned above, no adjustment on the basis of actual higher premium will be allowed.