Policy For Power Projects (Draft / Proposed)

Policy

• 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