The Private Power & Infrastructure Board (PPIB) has expressed its readiness to assist Saudi company M/s ACWA in establishing solar projects totaling 1200 MWp in South Punjab. According to sources, PPIB Managing Director Shah Jahan Mirza informed the Special Secretary SIFC that the draft Inter-Governmental Framework Agreement (IGFA) between the Governments of Saudi Arabia and Pakistan for cooperation and development of power projects had been prepared and shared with the Ministry of Foreign Affairs for further communication with Riyadh.
Mirza highlighted that the Standard Security Agreements necessary for the projects had been shared with the Saudi Pakistan Council’s Renewable Energy team, considered bankable and already executed for operational solar and wind projects. Additionally, key International Financial Institutions (IFIs) have extended lending support for renewable energy projects based on these agreements.
Addressing guarantees, Mirza explained that the Government of Pakistan Guarantee backs the payment obligations of the Purchaser under the Energy Purchase Agreement. He emphasized that alongside this guarantee, energy payments for projects developed under the Framework Guidelines 2022 are ensured through a direct debit mechanism.
Mirza also mentioned that land acquisition for solar PV projects in Layyah (600MWp) and Jhang (1200MWp) in Punjab is underway in collaboration with the National Transmission and Dispatch Company (NTDC) and the Punjab Government. He recommended expediting the land procurement process.
Furthermore, Mirza stated that grid studies confirming the necessary infrastructure for power evacuation from both projects have been completed and shared with the RE Team of the Saudi Pakistan Council.
Regarding the visit of the ACWA Power delegation to Pakistan, PPIB conveyed its availability during the final week of March 2024 to provide utmost assistance and facilitation.
The proactive approach of PPIB underscores efforts to bolster renewable energy initiatives and strengthen bilateral cooperation in the power sector.
Story by Mushtaq Ghumman
