Power Policy

POLICY FOR POWER PROJECTS (Draft / Proposed)

• The basis for selection of private power project will be the minimum levelized tariff either through International Competitive Bidding (ICB) for solicited proposals or through negotiations / ICB for proposals on raw sites.

• Without a proper feasibility study for a particular site-specific hydel or indigenous fuel based/ renewable resource based project, it will not be possible to invite competitive bids and receive firm offers.

• Hydel projects will be implemented on Build-Own-Operate-Transfer (BOOT) basis.

• Thermal projects would either be built on BOOT or Build-Own-Operate (BOO) basis.

• Private power companies will be allowed to import plant and equipment (for hydel & thermal projects), not manufactured locally completely exempted from the payment of taxes and duties.

Incentives

• Permission for power generation companies to issue corporate registered bonds.

• Permission for foreign banks to underwrite the issue of shares and bonds by the private power companies.

• Non-residents are allowed to purchase securities issued by Pakistani companies without State Bank of Pakistan's permissions to the extent of such investment and subject to the prescribed rules and regulations.

• Abolition of 5% limit on investment of equity in associated undertakings.

• Private power producers will be exempted from payment of corporate taxes, provincial and local taxes