878 km HVDC Transmission Line Project achieves financial close

February 27, 2019: Minister for Power Division, Omar Ayub Khan Wednesday said that the first-ever 878 kilometers (kms) long High Voltage Direct Current (HVDC) Transmission Line Project of Pakistan from Matiari to Lahore has achieved financial close.

The minister was speaking at a signing ceremony held at the Power Division where the documents were signed by Shah Jahan Mirza, Managing Director, PPIB and Wang Bo, Chief Executive Officer of the company, with senior officers from PPIB and the Power Division were also present at the occasion, said a news release issued here.

 The minister hoped this project will further pave the way for implementation of future transmission line projects through private sector.

The officials briefed that this High Voltage Direct Current (HVDC) transmission line project is being developed under the framework of China-Pakistan Economic Corridor (CPEC) Agreement and is another landmark achievement which has surfaced as a result of the efforts and facilitation of Private Power and Infrastructure Board (PPIB), Power Division, NTDC and other stakeholders.

It is not only the first-ever HVDC transmission line project in Pakistan, but also the first private sector transmission lines project facilitated by PPIB under the Government of Pakistan's Policy Framework for Private Sector Transmission Line Projects 2015 (Transmission Line Policy 2015).

China Electric Power Equipment and Technology Co Ltd, (CET) which is subsidiary of State Grid of Corporation of China (SGCC) is the main sponsor of the project, which is responsible for execution of the project through formation of a Special Purpose Company. i.e Pak Matiari-Lahore Transmission Company (Pvt) Ltd. (PMLTC).

Spread over 878 kilometers, the capacity of this transmission line will be 4000 MW at 660 KV voltage, the officials briefed.

The project is designed to have bi-pole HVDC technology, having two convertor stations, one each at the end of Matiari (Interior Sindh) and Lahore, three repeater stations and two grounding electrode stations.

PPIB issued Letter of Support (LOS) for the Project to PMLTC on August 4, 2017 and National Electric Power Regulatory Authority (NEPRA) granted Special Purpose Transmission License to PMLTC for the Project on February 18, 2018.

The project agreements i.e Implementation Agreement (IA), Transmission Services Agreement (TSA), Land Lease and Right of Way Agreement (LLA), Implementation Agreement and Guarantee Direct Agreement (DIA), TSA Direct Agreement (TSADA) etc. have already been signed by the respective entities.

The project entails an investment of US$ 1.658 Billion. After fulfilling mandatory prerequisites and completion of all financing arrangements, the project has successfully achieved financial close.

The project which is scheduled to achieve commercial operations by March 2021 would be executed on Build-Own-Operate-Transfer (BOOT) basis and will be transferred to NTDC after a term of 25 years.

This transmission facility will primarily be utilized to transmit power generated from indigenous Thar coal-based power generation projects, thus enhancing the share of indigenous fuel-based generation and saving significant amount of foreign exchange.

 With the medium and long terms plans of power induction into the national grid, it is important that the power transmission infrastructure is made available to transport the electricity from the power generation facilities to the load centers.

PPIB Is playing vital role in private sector resources mobilization for large power generation and transmission infrastructure projects, and Matiari-Lahore HVDC transmission project is one such example.

In addition to this HVDC project, PPIB is currently facilitating implementation of power projects having cumulative capacity of 10,934 MW under CPEC Agreement which include various hydel and coal-based projects.

(APP)

Posted on: 2019-02-27T17:22:00+05:00

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