PPIB approves documents for timely completion of hydropower projects under CPEC

ISLAMABAD: The Board of Private Power and Infrastructure Board (PPIB) on Friday recommended “Standardised Security Package Documents for Hydropower Projects” for submission to Economic Coordination Committee (ECC) for final approval.

The board of PPIB that met here with Minister for Power Omar Ayub Khan in the chair approved this important document that has been prepared by the PPIB with the consultation of federal and provincial stakeholders to cater for institutional requirements at federal as well as provincial and AJK level.

This will help in mitigating protracted negotiations with the private investor thus paving way for smooth and timely implementation of hydropower projects. With the approval of these documents from the ECC, the specific agreements of 1,124MW Kohala and 700MW Azad Pattan Hydropower Projects will stand approved for execution. The minister appreciated this development and said that the government is making every effort for attracting foreign direct investment in the country and Friday’s accomplishment is a latest example of government’s commitment for improving power supply in the country. With the implementation of these two major hydropower projects under CPEC, more than 8,400 GWH of clean and green energy would be added to the national grid every year.

The minister further stated that the present government is reducing red-tapism to fully facilitate the investors for availing the variables of growth and better returns which are available in the energy sector.

Managing Director PPIB Shah Jahan Mirza briefed the Board on various ongoing power generation projects being implemented all over the country. The Board was briefed that the PPIB is currently processing a diversified portfolio of 25 power generation projects of around 12,500MW while strategically important Matiari-Lahore HVDC transmission line project is also part of its active portfolio.

June 20, 2020: “Covid-19 crisis forced global investors to put their new investment plans on hold,” said Topline Securities Director Research Syed Atif Zafar while talking to The Express Tribune.

The global lockdown imposed to contain the virus badly impacted economic activities, businesses, people’s income and their purchasing power. As a result, the demand for many products, except for food and pharmaceuticals, dropped sharply. Most of the foreign investment during the Covid-19 pandemic went to the ongoing projects in Pakistan.

Cumulatively in 11 months (July-May) of the outgoing fiscal year, FDI grew almost 91% to $2.40 billion compared to $1.26 billion in the same period of last year, the central bank said.

The overall 91% growth in FDI got major support from an increase in Chinese investment, mainly in power projects under the China-Pakistan Economic Corridor (CPEC), Zafar said. “The flow of foreign investment in future depends on the unfolding Covid-19-related events like the second and third waves of infections, controlling the crisis and introducing the much-awaited vaccine,” he added.
Cumulatively in first 11 months of FY20, China was the largest investor with net investment of $855.6 million. Norway emerged as the second largest foreign investor with $346 million and Malta injected $203.7 million.

In the same period last year, Hong Kong, the United Kingdom, Norway, China and Japan were the top five foreign investors in Pakistan.