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Tri-Partite LOS for Projects Initiated by Provincial Governments

The Economic Coordination Committee of the Cabinet (ECC) in its meeting held on 21st June, 2015, approved the following amendments for incorporation in the Policy for Development of Renewable Energy for Power Generation 2006 in order to enable AEDB to issue Tripartite Letter of Support (LOS) to renewable energy based power generation projects on IPP mode initiated by the Provincial Governments:

PROJECTS INITIATED BY PROVINCES/ AJK/GB:

 

i.     The provinces/ AJK/ GB may prepare their own policies however where GOP Guarantee and IA are to be executed by AEDB a clear           coordination plan shall be developed with the consent of AEDB. GOP IA and Sovereign Guarantee shall only be provided for projects where         Power Purchaser is a Federal Entity and the tariff approved by NEPRA.

 

ii.    For the projects that have already been issued LOI by the provinces/ AJK/ GB and intend to sell power to a federal entity, upon request of th respective province/ AJK/ GB, AEDB will issue Tripartite LOS to the sponsors with respective provinces/ AJK/ GB.

 

iii.   For such projects, the GOP approved standard documents shall be used i.e. LOS, Performance Guarantee, IA, GOP Guarantee, EPA  etc.

 

iv.  Consent from Power Purchaser (NTDC/CPPA or DISCO) shall be obtained by provincial authority before processing the projects where federal entity is a power purchaser.