PPIB, AJK govt sign deal to instal 50MW projects

ISLAMABAD: The Private Power Infrastructure Board (PPIB) and the government of Azad Jammu Kashmir (AJK) on Friday signed a facilitation agreement (FA) for cooperation in setting up private hydropower projects of up to 50 megawatts and related infrastructure initiated by Kashmir government for further processing by the PPIB under the Tri-partite Letter of Support (LOS) regime. 

The documents were signed by Shah Jahan Mirza, Managing Director, PPIB, and Malik Israr Ahmed, Secretary (Electricity/PDO) Government of AJK in presence of senior officials from both the sides.  Earlier, the PPIB already signed the facilitation agreements with Energy departments of governments of Khyber Pakhtunkhwa and Punjab.  Through this arrangement, a tripartite LOS will be issued to the projects sponsors/companies and PPIB will facilitate them in establishing of private power projects and related infrastructure through signing an implementation agreement and issuing the Government of Pakistan (GoP) guarantee under the provisions of Power Generation Policy 2015. 

This initiative will attract and encourage potential investors in developing small to medium size hydropower power projects in AJK which will further augment generation capabilities. This milestone will enhance the confidence of investors in investing in the Private Power Projects of the AJK government and help in harnessing the large potential of hydropower projects in AJK.  The PPIB is already processing 11 medium to large size hydropower projects in AJK with a cumulative capacity of 4,739MW out of which three projects of 969MW are under construction after achievement of financial close while two projects of 1,764MW are expected to achieve financial closing soon and others are at different stages and moving ahead satisfactorily.  It is pertinent to mention that the first hydro IPP namely New Bong Escape Hydropower Project which is located in AJK is already commissioned and generating 84MW to the national grid.