On Wednesday, the country’s business community underscored the need for all political parties to sign a Charter of Economy (CoE) to move the economy forward and give investors trust.
This proposal was made by the Chief Executive Officer (CEO), M/s Atlas Group and the Chairman of the Pakistan Business Council (PBC), Saqib Shirazi, at a ceremony to close four 150 MW solar projects.
On behalf of the President of Pakistan, Shah Jahan Mirza, Chief Executive Officer, AEDB, executed and delivered the GoP guarantee for projects.
An investment of $148 million will come from the four solar power projects. Projects are funded at an 80:20 debt-equity ratio. For the Zhenfa project and Scatec ventures, Nepra has approved levelized tariffs of Cents 3.73/kWh and Cents 3.66/kWh.
Zhenfa M/s A 100MW solar power plant in Layyah (Punjab) with Lead Arrangers HBL, CDC Investment Works will be built by Pakistan New Energy Company Limited. The Norwegian company Scatec and Nizam Energy Pakistan funded three solar projects of 50MW each (total 150MW) – 50MW Helios Power (Pvt) Ltd, 50MW Meridian Energy (Pvt) Ltd and 50-MW HNDS Energy (Pvt) Ltd. These will be built in Sukkur (interior Sindh). It is anticipated that the projects will generate 494,427 GWh annually. Nepra approved 21.51 percent of capacity factor for Zhenfa and 23.27 percent for Scatec projects on the basis of the available solar resource.
The ceremony was also addressed by Minister for Energy Omar Ayub Khan, SAPM on Power Tabish Gauhar, Minister for Energy (Punjab) and PPIB Managing Director.
There is a need to sign the Economic Charter with any other (political) party for sustainable growth and an improved economy if you want this country to take its rightful position,”If you want this country to get its legitimate position, there is a need to sign Charter of Economy with any other group (political) for sustained growth and improved economy,”
He further suggested that investors should be given trust since the solution is a private public partnership.
Pakistan needs public and private sector involvement in order to move it forward, as it is everyone’s duty,”Pakistan needs participation of public and private sectors to take it ahead as it is the responsibility of everyone,”
Shirazi argued that, without higher economic growth in the region, the situation of the masses will not improve.
He said the solar project is being funded by three super-power firms, such as the USA, China and the UK.
Energy Minister Omar Ayub Khan said this is a significant move towards fulfilling the pledge of the Government of Pakistan to increase the share of renewable energy in power generation by introducing clean and green energy to the grid. In addition, the implementation of lower-tariff solar projects would help to reduce the total generation costs. He further noted that through competitive bidding, the potential procurement of power from solar and wind energy projects will take place.
Later on addressing the signing ceremony post financial close, he said the previous government did not pay attention to renewable energy, adding that with cheap generation vis-a-vis expensive generation, a sum of Rs 4 trillion can be saved.
He further claimed that, through the CASA project, Pakistan is also discussing various options for exporting electricity to other countries.
SAPM Tabish Gauhar reported that the annual financial effect of the 18% loss and 10% lower recovery of the power sector is about Rs 200 billion.
He further argued that it would help minimise circular debt with cheap electricity. He said government agreements with renewable energy projects have also been updated, adding that annual capacity payments for IPPs have crossed Rs 850 billion.
He further claimed that it is the government’s effort to provide the industry with uninterrupted supply.
Talking about the privatisation of Distribution Companies (Discos), he said the Privatisation Commission had been given this assignment. The government, however, wants to offer companies’ management contracts to the private sector.
The ceremony was also addressed by members of the Norwegian company M/s Scatec and Nizam Energy and commended the government for expanding cooperation.