Development of hydropower and coal based projects
The major focus of Private Power and Infrastructure Board is on development of hydropower and coal based projects in future.
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- The basis for selection of private power project will be minimum levelized tariff through International Competitive Bidding.
- The process of selection will involve pre-qualification, issuance of a Request for Proposals (RFP), bidding and evaluation of bids against bid criteria clearly laid out in the RFP.
- Detailed feasibility studies for every project will be prepared before bids are invited.
- Hydel projects will be implemented on a Build-Own-Operate-Transfer (BOOT) basis; to be transferred to the province in which it is situated at the end of the concession period, and thermal projects on a Build-Own-Operate (BOO) basis.
- The new Power Policy framework being proposed now is based on setting a tariff as a result of a competitive process through which private sector entrepreneurs will be invited to offer the lowest tariff per kWh for delivered energy.
- The GOP will guarantee that the terms of executed agreements, including payment terms, are maintained during and after the transition to the private sector companies that result from the system restructuring described above.