ISLAMABAD: The Private Power & Infrastructure Board (PPIB) has approved the extension of the Tripartite Letter of Support (TLoS) for Zorlu Solar Power Pakistan’s (ZSPL) 100 MW solar PV project, subject to certain preconditions.
During a recent meeting, MD PPIB Shah Jahan Mirza informed the Board that ZSPL’s project falls under Category II of the Cabinet Committee on Energy (CCoE) decision. The project initially received a tariff of US cents 4.0136/kWh in 2022, but a review motion filed by CPPA-G led to a revision by NEPRA in June 2023, lowering the tariff to US cents 3.9017/kWh and granting a four-month extension for the financial closing (FC) date. PPIB subsequently issued the TLoS in June 2023, with the FC date set for December 11, 2023.
In November 2023, ZSPL filed a tariff review petition requesting an additional four-month extension of the FC date and permission to fund part of the local financing. NEPRA approved the extension and permitted a financing mix of 65% foreign and 35% local funding.
At its 141st meeting, the PPIB Board granted an extension of the TLoS to match the FC date set by NEPRA. However, due to delays in submitting the required extension fee, PPIB could not issue the extension, resulting in the TLoS lapsing on December 11, 2023. ZSPL subsequently submitted a tariff modification petition to NEPRA, seeking an extension of the FC date and requesting PPIB to extend the TLoS validity until NEPRA determines the new FC date.
ZSPL’s modification petition asked NEPRA for a nine-month extension of the FC date, along with an additional six months for the commercial operation date (COD). In May 2024, ZSPL received a letter of support from the Asian Development Bank (ADB), indicating financing contingent upon NEPRA extending the FC date by at least six months following the decision’s gazetting. ZSPL has now requested PPIB for an extension of the TLoS validity until the new FC date determined by NEPRA.
The Projects Committee of the PPIB Board reviewed the matter in its 11th meeting and recommended extending the TLoS until NEPRA determines the FC date in its tariff decision.
After discussions and considering the committee’s recommendations, the Board approved the extension of the TLoS validity until the FC date set by NEPRA, contingent upon the submission of: (i) an extended performance guarantee of double the original amount; (ii) payment of PPIB fees per PPIB Fee Rules; (iii) NEPRA’s tariff determination and CPPA-G’s consent; and (iv) concurrence from the Government of Punjab/PPDB regarding the extended FC date.
Ends
