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Enhancing Provincial Hydel Power Policy: Amendments for Investor-Friendly Approach

Learn about the significant amendments in the Provincial Hydel Power Policy 2006 to attract investments, address sponsor concerns, and streamline procedures. Explore the rationale, problems faced, and improved features of the policy. Decision-making details included.

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Enhancing Provincial Hydel Power Policy: Amendments for Investor-Friendly Approach

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  1. 1

  2. Government of Khyber Pakhtunkhwa Energy & Power Deptt Amendments in Provincial Hydel Power Policy 2006 2

  3. Provincial Hydel Power Policy 2006 Why Amendments in 3

  4. Provincial Hydel Power Policy 2006 • Reasons for revising Policy for Hydropower Generation projects 2006 • CCI (dated 28-04-2011) removed the bar of 50 MW entitling provinces to undertake projects of any magnitude • Changes proposed in Federal Power Policy 2002 and prompting changes in Provincial Policy 2006 • Problems faced by investors 4

  5. Difficulties faced by Sponsors • Procedural and legal complications • Reluctance of Financial institutions / lenders to finance power generation projects 5

  6. Objectives of Amending 2006 Power Policy • The proposed amendments will • Attract investment • Boost the confidence of the sponsors • Address concerns of sponsors 6

  7. Salient Features of proposed Amendments • Bar of 50 MW removed and now province can issue LoI & Los for project of any magnitude • Bidding will not be applicable for raw site of any capacity. Raw site of any capacity will be awarded on first come fist serve basis • For early award of sites level of approving forum upto 50 MW has been brought down from Board to Secretary Energy & Power Department 7

  8. …Cont Salient Features of proposed Amendments • To reduce the cost of business, Representatives of Irrigation as well as Energy & Power Department have been included in the processing committee • New processing fee structure • Tripartite agreement introduced to enable investors to raise loan for the project • Concession period will be upto 30 years 8

  9. …Cont Salient Features of proposed Amendments • It will be obligatory on part of Provincial Departments to issue NOC to Investors within 15 days on receipt of the case from PHYDO • Force majeure clause has been included 9

  10. Decision Required • The Provincial Cabinet is requested to accord approval to the following amendments in Power Policy 2006: • Clauses 29, 32, 34, 35(i & iv), 38, 43, 44, 45, 47, 52,53, 55, 65, 67, 70, 73, 75, 76, 77, 112 and 118 10

  11. Thanks For Attention 11

  12. Mandate of Energy & Power Department • Mandate • Hydropower Generation • Oil & Gas Sector • Renewable Energy • Working with two Ministries at Federal Level • Ministry of Water & Power • Ministry of Petroleum & Natural Resources 12

  13. Articles Related to Energy & Power Sector 13

  14. Policies related to Power Generation & Oil Gas Production • Federal Policies • Power Policy for Generation 2002 • Alternate Renewable Energy Policy 2011 • Federal Petroleum Policy for Exploration & Production, 2012 • Provincial Hydel Power Policy 2006 14

  15. Rational Need for Proposed Amendments in Hydel Policy 2006 • Make the policy more investor friendly and to address certain emergent needs, Energy & Power Department intends to carry-out some rational proposed amendments as interim-gap arrangement in the Provincial Hydel Power Policy 2006 • Amendments have been proposed in few clauses which include 29, 32, 34, 35(i & iv), 38, 43, 44, 45, 47, 52, 53, 55, 65, 67, 70, 73, 75, 76, 77, 112 and 118 15

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