ISLAMABAD: The Private Power and Infrastructures Board (PPIB) has approved a one-year extension for the Letters of Intent (LoIs) for three Category-III solar PV projects. This extension is contingent upon the completion of competitive bidding and the provision of a bank guarantee.
The Managing Director of PPIB, Shah Jahan Mirza, recently updated the PPIB Board on the status of the projects, which include RE Solar I (Pvt) Limited, RE Solar II (Pvt) Limited, and Siddiqesons Solar Limited. These projects must participate in a competitive bidding process based on capacity allocations as determined by the Integrated Generation Capacity Expansion Plan (IGCEP).
According to Mirza, the draft IGCEP 2024 submitted by NTDCL to NEPRA does not currently allocate capacity for these candidate solar PV projects due to the large number of committed projects in the pipeline. However, the Federal Government is reviewing project classification criteria, which may influence future planning. Simulations indicate that a significant capacity could be available for solar PV projects if commitments are reconsidered.
The LoIs for these projects expired in February 2024, prompting the request for an extension. During the PPIB Board’s 11th meeting, the Projects’ Committee recommended extending the LoIs until the competitive bidding process is completed.
Addressing concerns from the Petroleum Division regarding the cancellation of LoIs for these projects, the Director (Solar) PPIB clarified that the current agenda only involves extending the LoIs issued by PPIB. He emphasized the need for a uniform cancellation policy for all Category-III projects, as other LoIs have been issued by provincial governments.
After thorough discussions, the Board decided to grant the extension, allowing for additional 12-month extensions as needed, based on the validity of the bank guarantee outlined in the LoI.
4o mini
