ISLAMABAD: Private Power and Infrastructure Board (PPIB) has been allowed to extend validity period of Tripartite Letter of Support ( TLoS) up to the Financial Closing Date of Zorlu Solar Pakistan Limited (ZSPL) subject to fulfillment of some conditionalities.
The decision was taken at a meeting of PPIB’s Projects Committee presided over by Additional Secretary Planning Division.
Director (Solar PV) apprised the Committee that 100 MW project of ZSPL is placed under Category-II projects of CCoE decision. It received the tariff of US cents 4.01/kwh in 2022 against which CPPA-G filed a review motion before NEPRA and in June 2023.
NEPRA revised the tariff from US cents 4.01 /kwh to US Cents 3.9017/kwh and also allowed 04 months extension in the FC date. PPIB issued Tripartite Letter of Support (TLoS) to ZSPL in June 2023, with FC date of December 11, 2023. In November 2023, ZSPL filed tariff review petition requesting for 04 month extension in the FC date, and to allow funding a portion of local financing for which NEPRA allowed a 04-month extension with no change in COD. NEPRA also allowed 65:35 mix of foreign and local financing.
The PPIB Board in its 141st meeting allowed an extension in TLoS up to the FC date granted by NEPRA. Due to delay in submitting requisite extension fee, PPIB could not issue the extension in the TLoS and consequently, it is lapsed since December 11, 2023. Thereafter, the company filed a tariff modification petition to NEPRA, seeking further extension in the FC date, and requested PPIB to extend the validity period of TLoS till the FC date to be determined by NEPRA.
According to PPIB, ZSPL, in its tariff modification petition has requested NEPRA to extend the current FC date by 09 months, and allow 06 months for COD from the extended FC date. In May 2024, ZSPL received letter of support from Asian Development Bank (ADB) showing its intent to provide financing, subject to an extension of the FC date by NEPRA of at least 9-month from gazetting of the decision. Now ZSPL has requested PPIB for extension in validity period of TLoS upto FC date to be determined by NEPRA.
At a recent meeting of Projects Committee of PPIB, Additional Secretary Planning Division who chaired the meeting as nominee of Secretary Planning Division desired that for the sake of better understanding, the geographical positioning of project should also be part of presentation.
Representative GoPunjab, while supporting extension, suggested waiver of requirement of doubling of PG and payment of extension fee. it was also suggested to omit the submission of PPIB regarding cancelling the project and encashment of PG in event of rejection of FC date extension by NEPRA. While deliberating waiver of PG doubling and extension fee, the Committee was of the view that these submissions may remain unchanged. However’ recommendations of representative GoPunjab for waiver may be presented to the Board for consideration.
The Committee deliberated para ii submission regarding cancelling the project and decided that since course of action for cancelation of project, in instance of rejection of FC extension by NEPRA is already available in TLoS, therefore this submission may be omitted.
After detailed deliberations the Committee took the following decisions ;(i) PPIB Board may approve extension in the validity period of TLoS up to the Financial Closing Date to be determined by NEPRA in the tariff determination against the review/ modification petition or a new tariff petition filed by ZSPL , subject to the submission : (i) an extended Performance Guarantee in double the amount;(ii) payment of PPIB fee as per PPIB Fee Rules;(iii) consent of, NEPRA./determination and CPPA-G; and (iv) concurrence of GoPb/PPDB lo the extended Financial Closing Date.
