KARACHI: The National Electric Power Regulatory Authority (Nepra) has granted licence to China Power Hub Generation Company (Private) Limited (CPHGCPL) for its proposed 1,320MW imported coal-fired power plant at Hub, Balochistan.
The licence has been awarded for thirty two years period as it is valid from September, 8, 2016 and will be expired on August, 30, 2048. The Hub Power Co (Hubco), the sponsors of the project, had applied in August 2015 requesting for the grant of generation licence incorporating special purpose vehicle in the name of CPHGCPL.
The power plant is to be located at about 20 KM from the center of Hub city, Mouza Kund, Tehsil Gadani, District Lasbella, in the Province of Balochistan.
The proposed project is joint venture of the Hubco and China Power International Holding Limited. In this regard CPHGCPL has submitted it is a separate legal entity and that land acquired by it and the land transferred by the Hubco must be addressed separately, said Nepra.
Before awarding the license, Nepra had sought stakeholders’ comments while in this regard Board of Investment, Directorate General of Mines & Minerals, Government of Balochistan, Punjab Mineral Development Corporation, Ministry of Ports and Shipping and Port Qasim Authority supported the project and have no objection for the grant of generation license.
Similarly, Private Power Infrastructure Board (PPIB) supported the issuance of generation license and stated that it has issued Letter of Intent to the project company and the project is well on track to achieve commercial operation in 2018. PPIB further apprised that the project is included as ‘actively promoted projects’ in China Pakistan Economic Corridor (CPEC) framework.
In comments on the proposed power project, National Transmission & Despatch Company (NTDC) said that a 500 KV double circuit transmission line from the Hubco to Matiari has been proposed for interconnection of the project with national grid and PC-I have been sent to planning commission for approval of the competent authority.
The Central Power Purchasing Agency Guarantee Limited (CPPA-G) commented that generation licence may be granted for development of the project. However, while approving the tariff the cost of land may be adjusted as the new coal fired plant is being developed on the existing site of 1200 MW RFO based power plant of the Hub Power Company Limited as the cost of land was already included in the Hub Power Company Limited ‘s RFO based plant.
However, Anwar Kamal Law Associates made serious reservation regarding performance of the Authority stating that the regulator has failed to remove the inefficiencies of the power sector. Further, the Associates highlighted different issues including issues of energy mix, poor performance of generation & distribution companies, high price of electricity, increased load shedding, long term power purchase agreements on take or pay basis, installation of imported coal based power plants in mid-country, coal transportation and logistics issues, surplus capacity, under utilization of power plants, induction of new plants on take or pay basis, economic merit order and market rules developed by NEPRA etc.