The Private Power and Infrastructure Board (PPIB) has recently conveyed the revised Commercial Operation Date (COD) of the 640 MW Mahl Hydropower Project to the National Transmission and Despatch Company (NTDC).
Situated along the River Jhelum at the junction of AJ&K, Punjab, and Khyber Pakhtunkhwa, the project is under development by Mahl Power Company (Pvt) Limited, in accordance with the Policy for Power Generation Projects 2002. Notably, China Three Gorges South Asia Investment Ltd (CSAIL) serves as the primary sponsor of the Project Company.
Sources familiar with the matter disclosed that the PPIB Board has granted an extension in the milestones of the Letter of Interest (LoI) for the 640 MW Mahl Hydropower Project. The extension, approved from April 2, 2023, to December 31, 2024, is contingent upon a Single Performance Guarantee. Key provisions include the necessity for the Project Company to maintain a valid Bank Guarantee for three months beyond the extended LoI period and the adjustment of the Project’s COD in the Integrated Generation Capacity Expansion Plan (IGCEP).
Furthermore, the Board has established a committee, comprising representatives from GoPunjab and senior members from PPIB, tasked with reviewing and potentially rationalizing the extension of LoI/LoS fees under PPIB (Fee and Charges) Rules.
The Project Company has already extended the Bank Guarantee until March 31, 2025. However, formal issuance of the LoI extension is pending clearance on fee matters by the PPIB Board. Meanwhile, the revised COD of the project, aligned with the extended LoI period, has been communicated to NTDC for consideration in the upcoming IGCEP iteration. Regarding fee waivers, the Company’s request is under evaluation by the Board-appointed Committee.
