Energy Crisis
BOI
BOARD OF INVESTMENT GOVERNMENT OF PAKISTAN
PAKISTAN POWER SECTOR
CONTENTS
SECTOR STRUCTURE POWER POLICY FEATURES OF POWER POLICY 2002 INCENTIVES IN POWER POLICY 2002. CURRENT & FUTURE POWER POSITION THERMAL POWER STATIONS (WAPDA) THERMAL POWER STATIONS (KESC) THERMAL POWER STATIONS (IPP’S) HYDEL STATIONS IN OPERATION FUTURE PRIORITY HYDEL PROJECTS (SHORT TERM) FUTURE PRIORITY HYDEL PROJECTS (MEDIUM TERM) FUTURE PRIORITY HYDEL PROJECTS (LONG TERM) COAL POWER STATIONS (WAPDA) FUTURE PROPOSED COAL PROJECTS NUCLEAR POWER STATIONS FUTURE PROPOSED NUCLEAR PROJECTS UPCOMING PRIVATIZATION PROGRAMME LIST OF RECENT FAST TRACK PROPOSALS FROM SPONSORS LIST OF PROJECTS BEING PROCESSED BY PPIB RENEWABLE ENEGY IN PAKISTAN 1 2 2 3 4 5 6 7 9 10 11 12 14 14 15 16 17 18 19 21
1
SECTOR STRUCTURE
INSTALLED POWER CAPACITY
(MW) TYPE HYDEL (WAPDA) THERMAL (WAPDA) THERMAL (KESC) THERMAL (IPPs) NUCLEAR Total Capacity NUMBER OF STATIONS 14 14 4 16 2 Installed Capacity 2002 6,494 4,835 1,756 5,832 462 19,379 % Share in Total Capacity 34 % 25 % 9% 30 % 2% 100 %
Source: Energy Book 2005, Hydrocarbon Development Institute of Pakistan.
2
POWER POLICY 2002
• Exemption from income tax including turnover tax and withholding tax on imports for the projects based on indigenous fuel. • No exemption of income tax on oil-fired power plants. • 5% custom duty on the import of plant, machinery & equipment (PME) not manufactured locally for gas, coal & hydel projects. • No levy of sales tax on such plant, machinery and equipment.
Income Tax
Custom Duties & Sales tax
FEATURES OF POWER POLICY 2002
• 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
BOARD OF INVESTMENT GOVERNMENT OF PAKISTAN
PAKISTAN POWER SECTOR
CONTENTS
SECTOR STRUCTURE POWER POLICY FEATURES OF POWER POLICY 2002 INCENTIVES IN POWER POLICY 2002. CURRENT & FUTURE POWER POSITION THERMAL POWER STATIONS (WAPDA) THERMAL POWER STATIONS (KESC) THERMAL POWER STATIONS (IPP’S) HYDEL STATIONS IN OPERATION FUTURE PRIORITY HYDEL PROJECTS (SHORT TERM) FUTURE PRIORITY HYDEL PROJECTS (MEDIUM TERM) FUTURE PRIORITY HYDEL PROJECTS (LONG TERM) COAL POWER STATIONS (WAPDA) FUTURE PROPOSED COAL PROJECTS NUCLEAR POWER STATIONS FUTURE PROPOSED NUCLEAR PROJECTS UPCOMING PRIVATIZATION PROGRAMME LIST OF RECENT FAST TRACK PROPOSALS FROM SPONSORS LIST OF PROJECTS BEING PROCESSED BY PPIB RENEWABLE ENEGY IN PAKISTAN 1 2 2 3 4 5 6 7 9 10 11 12 14 14 15 16 17 18 19 21
1
SECTOR STRUCTURE
INSTALLED POWER CAPACITY
(MW) TYPE HYDEL (WAPDA) THERMAL (WAPDA) THERMAL (KESC) THERMAL (IPPs) NUCLEAR Total Capacity NUMBER OF STATIONS 14 14 4 16 2 Installed Capacity 2002 6,494 4,835 1,756 5,832 462 19,379 % Share in Total Capacity 34 % 25 % 9% 30 % 2% 100 %
Source: Energy Book 2005, Hydrocarbon Development Institute of Pakistan.
2
POWER POLICY 2002
• Exemption from income tax including turnover tax and withholding tax on imports for the projects based on indigenous fuel. • No exemption of income tax on oil-fired power plants. • 5% custom duty on the import of plant, machinery & equipment (PME) not manufactured locally for gas, coal & hydel projects. • No levy of sales tax on such plant, machinery and equipment.
Income Tax
Custom Duties & Sales tax
FEATURES OF POWER POLICY 2002
• 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