Key Statistics
- Punjab derives its name from the five rivers flowing through the province (Sutlej, Beas, Ravi, Chenab and Jhelum). Punjab is home to over 90 million people. Location: 27. 40°/to 34.01° N and 69.20°/ to 75.20° E. latitude & longitude
- The installed electricity generation capacity is about 38719 MW, presently out of which 9861 MW comes from hydropower. The identified hydropower potential in the country is approximately 60,000 MW
- Punjab consumes 68% of generated national power. The current energy mix about is 26% hydro power and 72% thermal
- Punjab has the world’s largest contiguous irrigation canal network, about 23712 miles long
- Punjab Government invites the private sector to invest in power stations at raw sites on canals and rivers. There is about Hydropower untapped potential of 419 MW on canal falls/rivers
- Punjab Power Development Board is currently facilitating the development of 265 MW capacity hydropower projects in IPP mode.
Solicited Hydro Power Sites in Punjab
|
Sr No.
|
Parameter
|
Unit
|
Name of Hydro power Project
|
|||||
|
Pakpattan
|
Okara
|
Deg-out
|
Chianwali
|
Marala
|
Khokhra
|
|||
|
1.
|
Location
|
-
|
District
Pakpattan |
District
Okara |
District
Sheikhupura |
District
Gunranwala |
District
Sialkot |
District
M.B.Din |
|
2.
|
Canal
|
-
|
Pakpattan
Canal RD-112 |
LBDC
RD-196 |
UCC
RD-283 |
UCC
RD-128 |
UCC
RD-000 |
Gujrat
Branch RD-2.5 |
|
3.
|
Design Capacity
|
MW
|
3.2
|
4
|
5
|
5.4
|
7.2
|
2.8
|
|
4.
|
Design
|
m3/sec
|
84
|
150
|
150
|
150
|
350
|
41
|
|
5.
|
Discharge Gross Head
|
m
|
4.5
|
3.2
|
4
|
4.3
|
2.5
|
9.8
|
|
6.
|
Annual Generation
|
Gwh
|
22.7
|
27.6
|
29.1
|
32.2
|
48.5
|
20.7
|
|
7.
|
Cost
|
UD$
|
7.30
|
10.80
|
11.10
|
11.80
|
16.30
|
4.20
|
|
8.
|
EIRR
|
%
|
17
|
14
|
14.50
|
15.70
|
16.30
|
22.88
|
|
9.
|
FIRR
|
%
|
9.10
|
6.70
|
7.10
|
8.10
|
8.60
|
12.77
|
|
Sr No.
|
Name of Canal - Raw Sites (Without Feasibility)
|
Location
|
Discharge
M3/Sec |
Fall
(M) |
Power
Potential (MW)
|
|
1.
|
T. S. Link Canal
|
RD 0+000
|
311.49
|
0.87
|
2.20
|
|
2.
|
C. J. Link
|
RD 0+000
|
614.50
|
2.75
|
13.86
|
|
3.
|
Thal Main Line Lower Canal
|
RD 212+500
|
90.87
|
3.09
|
2.30
|
|
4.
|
Tail Main Line UCC
|
RD 133+298
|
315.00
|
2.45
|
4.24
|
|
5.
|
Main Line L.C.C.
|
RD 0+000
|
230.58
|
2.62
|
4.95
|
|
6.
|
Lower Chenab Canal
|
RD 140+050
|
136.00
|
2.16
|
2.40
|
|
7.
|
Upper Gogera
|
RD 214+000
|
132.52
|
2.38
|
2.58
|
|
8.
|
Thal Canal
|
RD 0+000
|
113.27
|
3.37
|
3.13
|
|
9.
|
B.R.B.D. Link Canal
|
RD 0+000
|
146.55
|
1.70
|
2.00
|
|
10.
|
B.R.B.D. Link Canal
|
RD 433+958
|
64.17
|
5.23
|
2.75
|
Fiscal and Financial Incentives
- Mandatory purchase of power generated by IPPs
- The Power Purchase will ensure grid connection, off take voltage and interface
- Wheeling arrangements
- Bonus incentive on power production more than the bench mark level
- NEPRA (National Electric Power Regulatory Authority) is in a process of announcing FIT (Feed in Tariff) for small hydropower projects soon
- Hydropower projects can be implemented on Build-Own-Operate-Transfer (BOOT) basis or on other negotiable mechanism
- GOP will guarantee the terms of executed agreements including payment terms
- No custom duty or sales tax for machinery, equipment and spares
- Exemption on income tax including turnover rate tax and withholding tax on import
- Repatriation of equity along with dividends freely allowed
- Non-Muslims and non-residents exempted from payment of zakat on dividend paid by the company
- Power generation companies can issue corporate registered bonds and shares at discounted prices
- Foreign banks can underwrite shares and bonds issued by private power companies
- Non-residents can purchase securities issued by Pakistani companies
- Abolition of 5% limit on investment of equity in associated undertakings
- Independent rating agencies are operating in Pakistan to facilitate investors in making informed decisions
- Government of Pakistan will guarantee the terms of executed agreements including payment terms
- Sovereign Guarantee by the Federal Government
Punjab Power Generation Policy 2009
- Projects may be developed on Raw/Solicited sites
- Concessions in duties/tax regime announced by Government of Pakistan are applicable for projects developed under the policy
- Standard formats of Power Purchase Agreement (PPA), Implementation Agreement (IA) and Water Usage Agreement (WUA) are available
- Water use charges @ Rs.0.425 / (Kwh) as per Federal Power Policy
- Dispersal of power can be made by:
- Sale to dedicated industry
- Sale to local area by establishing distribution network
- Sale to utility company (NTDC/DISCO),
- Use of Government land is allowed in following two modes:
- Lease
- Through equal equity participation.
- Mode of investment for Hydropower Power is:
- Build
- Own
- Operate;
- and Transfer basis (BOOT) or PPP
Un-solicited Proposals (Raw Sites)
- The proposals for which feasibility studies are not available can be developed for power generation and are classified as un-solicited proposal/raw sites
- The process includes invitation of Expression of Interest through press, registration and pre-qualification. The highest ranking sponsor is selected, who is issued Letter of Interest (LOI) authorized to carry out feasibility studies within 12 months
- Tariff will be negotiated between sponsor and power purchaser and approved by
- NEPRA Letter of Support (LOS) will be issued for a period of twelve months to execute agreement (IA, PPA and WUA) and to achieve financial close
Solicited Proposal
- Proposals will be solicited from investors for projects for which feasibility is available
- Process of selection involves invitation of competitive bidding through press
- For competitive bidding, selection process will involve pre-qualification, issuance of RFP, bid, evaluation and award
- Lowest bidder in terms of tariff is selected, who will get tariff approved from NEPRA
- Letter of Support (LOS) will be issued for a period of twelve months to execute project agreements and achieve financial close