Three new thermal power projects approved in Pakistan
Pakistan Times Business & Commerce Desk

ISLAMABAD: The Private Power and Infrastructure Board (PPIB) has decided to present three mega thermal power projects of 1200 MW for International Competitive Bidding (ICB) through national and international media.

These three mega thermal power projects would be opened for international competitive bidding through an advertisement to be released on 20th April 2005 in all national and international newspapers to invite foreign and local investors to make investments in 400 MW Uch-II Power Project based on low BTU gas, 450 MW.

Faisalabad dual-fuel (gas/oil) Power Project and 350 MW Lahore dual-fuel Power Project would attract foreign investment of US $ 3.5 billion in power sector. The board also constituted a four-member committee for the selection of the financial advisors for the above mentioned three projects and submit its report within a week for approval of the board.

This was decided in the fifty second (52nd) meeting of the Private Power and Infrastructure Board (PPIB) held here Tuesday under the chairmanship of Liaqat Ali Jatoi, Federal Minister for Water and Power.

The board was informed that the AES (USA) has submitted its interest to set up a 1,000 MW project based on Thar coal in Sindh, which would bring an investment of over US $ one billion.

It was also apprised that the Globeleq of UK has also announced to invest US$ one billion in Pakistan for setting up of new power project. The board was apprised that Brazil Energy, General Electric, Al- Ghorair, Bestway Group, Marubeni has also showed firm interest to participate in the upcoming projects through ICB.

Level of Investments

The Minister while presiding over the meeting said that Ministry of Water and Power and PPIB has been asked to chalk out a strategy to install power projects of 7,500 MW with a total investment of around US $ 8 billion in next 8-10 years in order to combat the looming power shortages.

The board approved the evaluation and ranking criteria for the prequalification and ranking of the bidders. The minister emphasized that the procedures should be made more investors-friendly and board meeting should be held frequently for early processing/approval of the projects. The minister also reiterated that in order to provide level playing field and transparency, the projects should only be awarded on the basis of international competitive bidding.

The minister informed the board about the successful Road Shows carried out in Dubai on 20-21 February and in London on March 2-3 to solicit investment for power generation in Pakistan. In the Road Shows four thermal power projects and seven hydro power projects with the total generation capacity of approximately 3600 MW were marketed to the potential investors. The board was also informed that the Road Shows received an excellent response from prominent investors, lenders, contractors, consultants, equipment suppliers, financial advisors, etc.

Some of the potential investors which participated in the Road Shows included General Electric (USA), Globeleq (UK), International Power (UK), AES (USA), Wartsila (Finland), Bestway Group (UK), Marubeni (Japan), Mitsui (Japan), Al-Ghorair (UAE), Emmar (UAE), Al-Futtaim (UAE), Bin-Zayed Group (UAE), National Power (UK), Actis (UK), Brazil Energy, Standard Chartered Bank, BHP, Shell, Fauji Foundation, Saigol, Descon, Ibrahim Group Sapphire and Rupali etc.

One to one meetings were also held with a number of potential investors, wherein Pakistan delegation under the leadership of Minister for Water and Power, responded to the various questions from the potential investors and urged them for participation in the upcoming projects.

The minister informed the board, he has already briefed the Prime Minister of Pakistan and he appreciated the efforts made to bring the investment in the power sector of Pakistan by marketing various project in the international competitive market.●