Power ministry’s officials tasked to resolve tariff issues to expedite CPEC projects

ISLAMABAD: Minister for Power Division Awais Leghari on Friday directed the authorities to resolve issues related to electricity tariffs to fast-track completion of new power projects under China-Pakistan Economic Corridor (CPEC).

Leghari, after listening to various representatives of energy projects in a meeting, tasked the Central Power Purchasing Agency and the ministry’s officials to approach the National Electric Power Regulatory Authority to sort out tariff-related issues being faced by some power projects.

Secretary Power Division Yousuf Naseem and Lijian Zhao, who was nominated by embassy of China as focal person of CPEC’s power projects, attended the meeting. The meeting followed the power division’s recent commitment of holding the meeting with energy projects’ investors to know their issues and find out solutions.

Power minister assured the investors that the power division is negotiating with the Federal Board of Revenue to seek tax exemption for them. Positive results are expected soon, he said.

The meeting was informed that Sindh Mining Company is trying to achieve the targeted Thar coal mining results within the time. It has already completed 63 percent work on mining and mine mouth plant and the coal power project of 660 megawatts is expected to achieve its commercial operation date in June 2019 well ahead of the time schedule by almost four months, according to the meeting.

The meeting told that Oracle Power, Shanghai Electric, Thalnova Power and Hubco Thar power project are also working fast and will timely achieve their commercial operation dates.

The representatives of power projects, including Port Qasim, Sahiwal, Hub, and Gwadar coal power projects and renewable energy projects briefed the meeting of their current status and further development activities.

Power minister, who is also the chairman of the Private Power Infrastructure Board (PPIB), directed the board to hold its next meeting on 11 January, responding to delay in issuance of letters of interest and support.

The minister ordered the PPIB to identify the reasons of delay and come up with the solutions in the next meeting for its merit consideration and decision.

Leghari ruled out any further extension in the issuance of letters of interest and support. “The case for one time extension will be presented before the PPIB BOD (board of directors) for consideration,” he said in a statement.

Power minister also directed National Transmission and Despatch Company to provide all-out support to the investors so they may be able to evacuate the power as soon as they achieve the commercial operation date.

The minister also directed the power division to hold meeting with provincial governments of Balochistan and Khyber Pakhtunkhwa for early provision of land for Gwadar coal power project and Sukki Kinari hydro power project, respectively.

Zhao appreciated the efforts of the power division for meeting with all investors under the CPEC energy projects, listening to their issues and issuance of directions for their early resolution. “China is further looking to extend support to Pakistan in energy and investors in China have been keenly following the success in the power sector,” he said.