ISLAMABAD: The Power Division is set to present a summary to the Economic Coordination Committee (ECC) for approval of the security package documents for the 7.08 MW Riali-II Hydropower Project under the Power Generation Policy, 2015. The Finance Division advised that the Power Division should ensure the documents align with the policy, without imposing additional obligations or guarantees.
The 7.08 MW run-of-river project, located on Ghori Nullah in Azad Jammu & Kashmir (AJ&K), recently received an 18-month extension in its Financial Closing Date, extending it to October 12, 2025. The Private Power Infrastructure Board (PPIB) Board approved this extension based on delays in securing ECC-approved project documents, including the Implementation Agreement and Energy Purchase Agreement, which were beyond the control of the Project Company.
The company, which has already completed 60-65% of construction, also requested an exemption from TLoS extension fees, citing delays outside its jurisdiction, although no such exemption exists in PPIB’s fee rules. The PPIB Board granted the extension based on a single performance guarantee and required the project to extend its Bank Guarantee validity three months beyond the extension period, with applicable fees in line with PPIB’s 2022 amendment rules.
Story by Mushtaq Ghumman
