PAKISTAN: Moratorium issued on private power proposals

09 September 1994

The government has issued a moratorium on private-sector proposals for new power projects. The number of proposals that have been successfully submitted to the government is 25. The government announced its new energy policy in May, saying that all new thermal power generation was to come from the private sector (MEED 17:6:94).

Since then it has initialed fuel supply and power purchase agreements for two projects. One is for a 584-MW gas-fired plant in Uch, Baluchistan, sponsored by General Electric Company (GE), Tenaska International, Hawkins Oil & Gas, all of the US, Central Power, a subsidiary of the UK's Midland Electricity Board and the local Hasan Associates (MEED 5:8:94). The second is for a 350-MW oil-fired plant in Muzaffargarh, Punjab sponsored by AES Pakistan (MEED 19:8:94). A memorandum of understanding has also been signed with Powerbridge of the US for a coal-fired plant in Sindh province.

A further 10 proposals have received letters of support, but industry sources say that only three or four of these are also viable. Seven projects with a total capacity of 1,974 MW have the potential to be implemented, they add.

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