Sindh okays feasibility to set up power project

KARACHI – Sindh Chief Minister Qaim Ali Shah on Wednesday presided over the 8th meeting of Public Private Partnership Board at the Chief Minister House, which discussed various issues and agenda of public, private partnership, and took various decisions.
Regarding, Run of the River Power Projects, the PPP Board approved the process undertaken so far, while TFEC will get the feasibility identified, which will come to the Board for final approval.
It was informed that the consultants have identified Rohri Canal RD-15 as the most suitable site for power project under PPP mode, as the project of 3MW capacity has been launched for investors’ solicitation. In connection with development of solar energy projects, to get allowed PPP unit to take up project structuring activities of solar projects, the PPP policy board decided to further consider and consult the matter.  The meeting was attended by Sindh Agriculture Minister Ali Nawaz Shah, Sindh Finance Minister  Murad Ali Shah, Sindh Law Minister Ayaz Soomro, Chief Secretary Sindh Raja Abbas, ACS (P&D) Israr Malik, ACS(Finance) Arif Khan, Secretary Energy/Director General Public Private Partnership Sohail Rajput, provincial secretaries of Health, Agriculture, Works and Services, E&AED, Administrator Karachi MH Syed and MA Jabbar, & others. Regarding Noorisabad Power Projects (Phase-I & II), the PPP Board approved injection of 49% the equity component into the project from the viability gap fund, and post facto  approval of the VGF funding already incurred on the project development process. According to details, two separate 50-50 MW power plants will be installed at Nooriabad and Tariff offered is Rs7.929kwh, with debt to equity of 80:20, and there will be 51pc equity worth Rs620m while 49pc GoS equity of Rs596m. The total project cost is Rs6.080b and annual O&M cost will be Rs662m.
With regard to Hyderabad-Mirpurkhas dual carriage way, it was informed that the project is ready for official inauguration, and Sindh govt has injected equity worth Rs550m into the Hyderabad-Mirpurkhas dual carriageway. Besides, an additional scope of work has also been under-taken amounting to Rs19.456m for the construction of additional 110 culverts and water courses.
Qaim directed Secretary Works & Services, Commissioners of Hyderabad and Mirpurkhas, Deputy Commissioner of Hyderabad, Mirpurkhas, Tando Allahyar to provide necessary protection to contractors and the work be completed up to December 15.
With regard to Jherrak-Mula Katyar, the meeting was informed that the government of Sindh has allocated Rs525 Million as equity for the project, and Habib Bank Limited has been selected as the SBLC provide for the financial close by the VGF Board. Regarding Khajoor Mandi Project, the Board approved the project worth cost of Rs3000 million at Khairpur and termed it first pilot project and first PPP project. It was decided to launch the project early.
The Board also approved National Institute of Child Health (NICH) Security & Fire Safety Contract, Sindh Mega Infrastructure Development Authority, PDF funding as required for hiring of consultants for Rapid Transit project. The CM directed to complete the remaining work on fast tract basis and that all necessary administrative help will be extended to fill New Jersey barrier.

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