"The board discussed the evaluation report on the project and decided to award the project to Feteh Group," PPIB Managing Director Zafar Ali Khan stated this, while talking to Business Recorder. The proposals of Dadabhoy and Al-Abbas Group were declared not feasible.
To a question, he said that no decision has been taken regarding the resolution of dispute between Western Energy Limited (WEL) and Karachi Electric Supply Corporation (KESC) over tariff issue.
"WEL is not ready to revise its earlier tariff offer of 5.14 cent per unit and the KESC considers it very high," he said, adding that the board has decided to leave the issue as it is.
Zafar said the issue of Sabah Shipyard did not come under discussion as the legal adviser Dr Tariq Hasan was abroad.
He, however, said that the board has extended the tariff negotiations time of Mira Power Project (MPR) for six months. Earlier, the company had been given three months to complete negotiations.
According to a press release, the board has decided to issue letter of support (LoS) to 200MW Orient Power project to be located at Balloki near Lahore and 123MW Star Power project at Daharki, Sindh.
The groundbreaking/construction of these projects will take place shortly.
The board appreciated the initiatives taken by leading local industrial groups to invest in power generation projects. It noted that the local companies who have submitted proposals are of good financial standing and have diversified business experience.
Four proposals with a total capacity of 1,450MW from Nishat Group, Atlas Group, Ibrahim Group and Gulistan Group were approved in principle for further processing by the PPIB.
The board also appreciated the interest of the existing independent power producers (IPPs), which are best placed to provide additional power in the minimum time and at most competitive rates.
The board also approved in principle the issuance of letter of intent (LoI) on the proposals submitted by Kot Addu Power Co, AES Lalpir/Pakgen, Southern Electric, Gul Ahmad and Tapal Power for expansion of their existing power generation units.
The board also approved the proposal of Engro, one of the leading business houses of Pakistan, for setting up 150MW project at Daharki based on 75 MMCFD of permeate gas.
In order to encourage utilisation of indigenous coal resources, the board also approved issuance of LoI for 200-450MW power generation project based on Lakhra coal mines in Sindh.
These proposals will bring in an investment of over $2 billion from the private sector.