Power Division urged to expedite approvals for small dams

Managing Director Private Power Infrastructure Board (PPIB), Shah Jahan Mirza has written a letter to the Power Division stating that unwanted delays in approval for small hydropower projects (SHPPs) are severely affecting the confidence of investors in Pakistan.

Following the mandate of Power Generation Policy 2015, Standard Security Package Documents comprising of Implementation Agreement (IA), Energy Purchase Agreement (EPA), Water Use Agreement (WUA) were prepared. For projects within the AJ&K territory, the GOAJ&K Implementation Agreement (AJ&K IA) were prepared for SHPPs. But due to one reason or another the final approval is still pending.

In early January 2021 the Board of PPIB had authorized submission of summary for approval of standard documents by the ECC. As a result, the draft summary was submitted to Power Division. Subsequently, after clarifications and receipt of comments from various stakeholders, the final summary was submitted to the ECC by the Power Division on October 4, 2021. ECC considered the summary and directed the Power Division “to first place the matter before the Cabinet Committee on Energy (CCoE) for consideration.

After the matter was placed before the CCoE it deliberated in detail and approved the concept of “take and pay” with “must run” condition with respect to two committed SHPPs i.e. 7.08 MW Rialli-II and 8 MW Khattai-lI. But their final decision could not be reflected completely in the minutes of the meeting.

Due to such delays and unnecessary hindrances the SHPPs are constantly suffering and critical milestones are being extended without any fault on the part of sponsors.