An insight into Private Power and Infrastructure Board and its performance

Engineering Post Report

The Government of Pakistan (GOP) had established way back in 1994 the Private Power and Infrastructure Board (PPIB) as a “One Window Facilitator’  to attract  private power sector private investments in power generation, particularly  in coal both imported and local, Re-gasified Liquefied Natural Gas (RLNG),  and hydel, based on state-of-the-art  technologies and recently installed HVDC transmission line and have duly expanded and diversified the country’s power generation and transmission line infrastructure indecent years.

So far, two robust  policy  frameworks , Power Generation Policy 2015 and Policy Framework for Private Sector Transmission Line Projects 2015,  have received an overwhelming  market response and attracted many renowned local and foreign investors to the Pakistan power sector.

In 2012, the PPIB was granted a statutory  status through the PPIB Act 2012. Subsequently,  the PPIB Amendment Act 2016 authorized PPIB  to facilitate  certain public sector power and related infrastructure projects in Independent Power Project (IPP)mode, PPIB approves IPPs, issues Letters of Interests (LOIs) and LOSs (including  Tripartite LOSs), approves feasibility studies , executes Implementation Agreements (IAs), provides GoP guarantees, and formulates regulations related to power generation and transmission lines

Till recently, PPIB had successfully managed  to develop as many as 45 IPPd of about 20911 MW, more than half of the country’s installed capacity  attracted foreign direct  investment (FDI).of over US $ 25 billion. These initiatives  have boosted  economic development, employment, and livelihoods by  generating much -needed electricity.

PPIB has also facilitated the country’s  massive transmission line project, Lahore -Matiari, the first HVDC transmission line project created by the private  sector. This project, worth US $ 1.65 billion of FDI shows PPIB’s crucial  role in private sector  resources  mobilization for power sector transmission infrastructure  projects.

PPIB was promoting indigenous Thar-coal and hydel resources to generate  cheaper electricity and accelerating  hydel and Thar-coal ased  power generation projects.

PPIB was processing 16 power generation projects of over  8300 MW, 13 hydroelectric  projects of 5455 MW, one RLNG-based  project of 1320 MW and an imported coal-based project of 300 MW.

The government fully understands  the adverse impacts of  climate change, thus, all the projects including coal meet World Bank/International Finance Corporation’s environmental standard.

The federal government had in 2016 had placed a moratorium  on further processing new imported fuel-based power generation projects except those the Board ad already  approved  to reduce dependence  on imported fuels. A[part from opening  new vistas of investment  in Thar-coal and hydel power generation, following the power demand-supply  scenario under the Indicative Generation Capacity Expansion  Plan (IGCEP)  and the policies in vogue.  , PPIB was endeavoring to complete three IPPs of 2154 MW during financial year


Power production requires tariff determination, land purchase, generation license , environmental clearance, coal price  and a number of other inter-dependent processes. Any dispute activity  impacts the overall  project implementation process, thus disturbing  the project timelines. PPIB  has promoted and implemented  upcoming IPPs , although  outside factors have hampered  project  companies/sponsors. These factors included  but many of these may not be limited  to COIVD-19, Sinosure and land purchase. In such situations, PPIB has been playing  an important role in handling these problems with all stakeholders. Thus, 4 Thar coal and  hydropower projects of 3600 MW were built in one year. Other projects include   developmental  activities  during July-March FY2023.

According to the information available from the official sources concerned, the federal government was planning to convert  all commissioned  imported coal IPPs to Thar coal.  Accordingly, a feasibility study was conducted  under the direction of the Ministry of Energy (Power Division), which suggested  starting on-site  testing of 10 percent Thar coal blending  with the imported coal As such, efforts have since been commenced to blend Thar coal with imported coal  for Sahiwal, Port Qasim, and Hub coal projects having a total capacity of 3960 MW.

Some more information about PPIB projects held up for want of space and will be presented on these pages next month, please.