KARACHI: The National Electric Power Regulatory Authority (NEPRA) Thursday has introduced a fresh upfront tariff for coal-based power projects in Thar, replacing the existing beneficial rates. The authority determined and approved the new upfront tariff and for Thar coal power generation projects for delivery of electricity to the power purchaser fixing 7.33 US cents per unit for foreign-funded plants of 660 megawatts and 7.41 US cents for locally funded projects. Likewise, the upfront tariff for foreign-funded projects of 1,100MW was set at 7.22 US cents and 7.32 US cents per unit for locally funded projects. Earlier, the levelized tariff for 660MW power plants on foreign financing was 8.33 US cents per units and on local financing 9.57 US cents per unit. For 1,100MW power projects, the notified tariff was 7.99US cents per unit for foreign financing and 9.13 US cents per unit for local financing. NEPRA said that the new tariff has been determined on the basis of consultations with all the stakeholders, including federal and provincial governments, investors and experts. NEPRA had announced the existing tariff for Thar power projects in July 2014 for two years and it was notified by the federal government on Jan 20, 2015. That tariff was expired on January 19, 2017. The tariffs have been worked out on the basis of power complex comprising single unit and two units each for wet cooling technology and air cooling technology. The sponsors shall be allowed to choose appropriate size of the power complex in accordance with the feasibility of the project, benchmark efficiency levels, benchmark capital cost levels, availability of coal, consent of the power purchaser and availability of interconnection arrangements by NTDC. Reference exchange rate of Rs 105/US$ has been used in calculating the reference tariff and the same shall be used for indexations/adjustments where applicable, said NEPRA. Construction period shall be 36 months for power complex comprising single unit and 42 months for power complex comprising two units. The upfront tariff has been determined on the basis of debt equity ratio of 75:25. Reference LIBOR is 1.8% with a premium of 4%. One time Sinosure fee/credit insurance fee @7% of the debt servicing amount. In case of project financing without Sinosure fee/credit insurance fee, the applicable premium over LIBOR shall be 4.5%. In case of local financing, the reference KIBOR is 6.36% with a premium of 2.5%. Loan tenure of 10 years plus grace period equivalent to construction period has been considered. Published in Daily Times, July 28th 2017.