TABLE OF CONTENTS

S. #DescriptionPage No.

1Pakistan Power Sector3

2Incentives for Investors - Development of Power Projects4

3Salient features Transmission Line Policy 20145

4Pakistan Power Park, Gaddani, Balochistana. Salient Featuresb. Conceptual Viewc. Indicative Investment Estimates d. Business Modele. Feasibility studyf. Investment Opportunities6-13

5Thar Coal Mining and Power Generation, Sindh14-15

6Initiatives by Government of Punjab16

7Investment in Pakistan Power Sector - A Promising Opportunity17

8Private Power Infrastructure Board (PPIB) - A Facilitator18

8Investment Opportunities - Hydro Power Projects Turtonas-Uzghor Hydro Power Project Neckerdim - Paur Hydro Power Project Azad Pattan Hydro Power Project Chakothi Hattian Hydro Power Project Madian Hydro Power Project Asrit - Kedam Hydro Power Project

19-31

9Hydro Power Projects Khyber PakhtunkhwaHydel Projects, Pre-Feasibility Studies Completed

Nil Da Katha, Bhimbal Katha, Saiful Maluk Katha, Balkani, Chowkel Khwar, Kedam Khwar, Gandigar, Ayun Gol, Barum Gol, Mastuj River

Hydel Projects Through PPP Sharmai Hydropower Project, Distt. Dir Shogo-Sin Hydropower Project, Chitral Shushgai Zhendoli Hydropower Project, Chitral

32 - 50

11Contact information Board of Investment Private Power Infrastructure Board (PPIB) Thar Coal and Energy Board Energy Department, Government of Punjab Pakhtunkhwa Hydel Development Organization

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Pakistan Power Sector

Incentives for Investors Development of Power Projects

Exemption from Corporate Income Tax, Turnover Tax and Withholding Tax, no Sales Tax, only 5% concessionary Import Duty on plant & equipment not manufactured locally GOP Guarantees obligations of power purchaser and provinces GOP provides protection against Political Force Majeure, change in law and Change in duties & taxes Power Purchaser to bear hydrological risk for hydropower projects GOP allows 20% ROE for indigenous coal based power projects, and 17% ROE on hydro power projects Payment of compensation in case of termination due to GOP Event of Default Tariff adjustments for variation in currency exchange rates and fuel prices Tariff indexation for inflation (US CPI & Pak WPI) Government ensures conversion of Pak Rupee & remittance of foreign exchange for project-related payments

Salient Features Transmission Line Policy 2014 List of Transmission System projects to be offered to Private Sector will be prepared by GOP BOOT Model Policy to cover Transmission Line & Grid Station projects of 220 KV voltage level and above (EHVAC & HVDC) Land & Legal Right of way to be provided by NTDC at no cost Project Term : 25-30 years Equity : 18 % Transmission utility (NTDC) to pay Transmission Service Charge in Rs./km/month/circuit Exemption from Corporate Income Tax and 5% flat Custom Duties Utility to provide Basic Design & Functional Performance Specifications Standardized Security Package (IA & TSA) One Window facility by PPIB

Pakistan Power Park, Gaddani, BalochistanSalient Features

The Prime Minister of Pakistan approved the concept of 6,600 Pakistan Power Park at Gaddani on July 26, 2013

The Pakistan Power Park will have Dedicated deep Sea Jetty 2x 660 MWs in Public Sector 8x 660 MWs in Private Sector as IPPs Transmission Network for evacuation of Power Common infrastructure facilities of coal conveyer system, cooling water, switchyard, ash disposal, and residential facilities etc

Conceptual view

Indicative Investment Estimates

Pakistan Power Park: Major Components Jetty and related Marine InfrastructureUSD500700 million Parks Onshore InfrastructureUSD 100 million Transmission LineUSD 3 4.43 billion 2x660 MW Project in public sectorUSD 1.8 billion 8x660 MW Projects in private sectorUSD 7.2 billion TotalUSD 13.8 billion

Note: These are very Preliminary and Rough Estimates and will change considerably as design is finalized and costs are firmed up.

Business Model

Feasibility Study

NESPAK Completed Following Activities for Gaddani Power Park Land Ownership Survey Topographic Survey Construction Material Study On-shore Geotechnical Investigations Already Completed by NESPAK Geophysical Survey on-shore Seismic Study Electric Resistivity Survey

Master plan for Pakistan Power Park completed in collaboration with specialist foreign and local firms

Feasibility Study of Gaddani Power Park is in Progress

Investment Opportunities

8 x 660 MW Power Plants in IPP mode on Build, Own & Operate basis Construction of deep Sea Jetty and Marine Infrastructure Development of infrastructure of Pakistan Power Park Construction of Transmission Line Construction of access Roads

Thar Coal Mining and Power Generation

Total Potential of Thar 175 billion tonsAverage Area of Blocks 100 Sq KMAverage Seam Thickness 10-20 mOver Burden 114-137 mAverage Stripping Ratio 6.2:1Fixed Carbon % 14.2-34.0Volatile matter % 23.1-36.6Moisture content % 29.6-55.5

Thar Coal Field Sindh Thar Coal Field is located in South Eastern part of Sindh at about 380 kms east of Karachi, spreading over an area of 9,100 sq. Km

The total potential of Thar is estimated at 175 billion tons of lignite which is equivalent to 50 Billion TOE (i.e. more than Saudi Arabia and Iran oil reserves) or 2,000 TCF gas (68 times higher than Pakistans Gas Reserves)

Thar Coal Field is divided into thirteen blocks, out of which four blocks have been allocated to the following projects / companies: Sino Sindh Resources Private Limited (Block I) Sindh Engro Coal Mining Company (Block II) Oracle Coalfields, PLC UK (Block VI) Planning Commission (Block V)

Investors may approach Thar Coal Energy Board (TCEB) for allocation of Thar Coal block for Mining

Investors may join hands with the existing sponsors of Thar coal blocks and IPPs interested in developing Projects at Thar

Initiatives by Government of Punjab

Government of Punjab planned adding approximately 7200 MW in the medium term (3-5 years) to the national grid through private or public investment in imported coal based Power Plants Potential projects include: 2 x 660 MW coal power project at following sites: Qadirabad (Sahiwal), Bhikki (Sheikhupura), Haveli Bahadur Shah (Jhang), Balloki (Kasur), Trinda Saway (Rahim Yar Khan) Mouza Saddan Wali (Muzaffargarh)

Triplicate Security Package to be signed amongst the concerned Provincial Government, Government of Pakistan and the Project company

Investment in Pakistan Power Sector A Promising Opportunity

Due to growing power demand, there is dire need of Power capacity addition. Pakistan has successfully attracted investment worth billions of dollars from Private Sector for Power generation World renowned power players are already operating in Pakistan. One-Window facility provided at Federal level by PPIB Federal Government guarantees the performance of the power purchaser and provinces. Federal Government provides protection against political force Majeure and change in law. Concessionary import duties and tax free regime for Power Plants developed under the Policy.

Private Power Infrastructure Board (PPIB) A Facilitator

HYDROPOWER PROJECTS

Turtonas-Uzghor Hydropower Project

It is expected to be advertised in near future subject to certain Codal Formalities between Federal Govt. and the Provincial Government.

General:Project Name : Turtonas Uzghor Hydropower Project (Raw Site)

Location: Golen Gol River near Uzghor Village (around 33 km from Chitral Town)

Technical: Capacity: 58 MWGross Head: 351 mMean Annual Energy: 254 GWhProject Type : Run-of-River Design Discharge: 20.0 m3/secPlant Factor: 50%Estimated Cost: 87 Mill US$

Current StatusProject is expected to be advertised approval from PPIB Board

PARTICIPATION REQUIREDProject Sponsors through International Competitive Bidding (ICB)

Neckerdim - Paur Hydro Power Project

It is expected to be advertised in near future subject to certain Codal Formalities between Federal Government and the Provincial Government.

General Project Name: Neckerdim-Paur HPP (Raw Site)River : Yarkun-a tributary of Mastuj River Location : Project area is 70 km from Mastuj town Distance : 178km from Chitral town

TechnicalCapacity: 80 MWEnergy: 321 GWhProject Type : Run-of-River Design Discharge: 30 m3/sGross Head: 341 m Plant Factor: 45.8 % Estimated Cost:120 Mill US$

Current StatusProject Profile and Pre-Qualification Documents are being prepared, EOI for development of the project will be solicited through advertisement in the press shortly.

PARTICIAPTION REQUIRED:Project Sponsors through International Competitive Bidding (ICB)

Investors support required in Equity Debt Financing, EPC and O & M Contracts

Azad Pattan Hydro Power Project

This Project is already awarded to Private investors. They may requires equity particiaption, EPC contracting etc. They can be reached directly to seak opurtunity of investment.

GeneralProject Company: Alamgir Power Pvt LtdProject Sponsors: Alamgir Power (Pvt.) Ltd (Main), Project Cost : US$ 1446.7 Million as per Feasibility StudyProject Consultant : Scott Wilson

TechnicalCapacity : 640 MWEnergy: 3075 GWhLevelized Tariff: US 7.7125/kWh (as per Feasibility Study for 30 years)Expected COD: June 2020Current StatusTariff negotiated b/w Sponsors and NTDC

PARTICIAPTION REQUIRED:Equity Partners Debt Financing EPC Contractor Detailed Design Consultants Equipment SuppliersO & M Contractor

Chakothi Hattian Hydro Power Project on Jhelum River

This Project is already awarded to Private investors. They may requires equity particiaption, EPC contracting etc. They can be reached directly to seak opurtunity of investment.

GeneralProject Sponsors: Suhail Jute Mills Ltd., Colony Sarhad Textile MillsProject Cost : US$ 1176.5 Million as per Feasibility StudyTechnicalCapacity : 500 MWEnergy: 2410 GWhLevelized Tariff: US 7.89/kWh (negotiated F.S for 30 yrs.)Expected COD: December 2020

Current StatusFeasibility Study has been approved by the Panel of ExpertsFeasibility Level Tariff has been finalized between Sponsors and NTDC; NTDC after approval from its Board will forward the case to NEPRA for final approvalPARTICIAPTION REQUIRED:Equity Partners, Debt Financing, EPC Contractor Detailed Design Consultants, Equipment SuppliersO & M Contractor

Madian Hydro Power Project

This Project is already awarded to Private investors. They may requires equity particiaption, EPC contracting etc. They can be reached directly to seak opurtunity of investment.

GeneralProject Name : Madian Hydropower ProjectProject Company: Cherat Cement Co. Ltd.Project Sponsors: i) CheratCement Co. Ltd. ii) Shirazi Investment (Pvt) Ltd.Project Consultant: FICHTNER GmbH (Germany)Location : Distt. Swat, Near Madian Town, Khyber Pakhtunkhwa River: Swat RiverProject Cost : US$ 438 Million as per Feasibility Study (2008)TechnicalCapacity : 157 MWGross Head: 214.8 m Tariff: US 8.92/kWh (Term 30 years at 2008 level cost)Current StatusFeasibly Study has been completed, The Sponsors have been advised by PPIB to approach NEPRA for Tariff Determination.

PARTICIAPTION REQUIRED:Equity Partners, Debt Financing, EPC Contractor Detailed Design Consultants, Equipment Suppliers O & M Contractor

Asrit - Kedam Hydro Power Project

This Project is already awarded to Private investors. They may requires equity particiaption, EPC contracting etc. They can be reached directly to seak opurtunity of investment.

GeneralProject Name : Asrit-Kedam Hydropower ProjectProject Sponsors: Yunus Brothers GroupProject Consultant: i) RSW International, Canada ii) NESPAKLocation : Near Kedam Town, Distt. Swat, Khyber Pakhtunkhwa River: Swat RiverProject Cost : US$ 405.60 million as per Feasibility Study (2008)TechnicalCapacity : 215 MWGross Head: 214.8 m Tariff: US 7.83/kWh (Levelized Tariff for 30 years term at 2008 level)Current StatusFeasibly Study completed

PARTICIAPTION REQUIRED:Equity Partners, Debt Financing, EPC Contractor, Detailed Design Consultants, Equipment Suppliers, O& M Contractor

ContactsBoard of InvestmentPrime Ministers OfficeAtaturk Avenue, Sector G-5/1, Islamabad, Pakistan.Tel: 0092-51-9204339, 9207031Fax: 0092-51-9218325, 9218323Website: www.boi.gov.pk

Private Power and Infrastructure Board (PPIB)50 Nazimuddin Road , F7/4 , Islamabad, Pakistan.Tele: 0092(51) 9100118-129Fax: 0092(51) 9100131, 9100132Website: www.ppib.gov.pk

Energy Department,Government of the Punjab,Irrigation Secretariat,Library Road, Old Anar Kali, Lahore, Pakistan.Phone: 0092 42-99213974-5Fax: 0092 42-99213906Website: www.energy.punjab.gov.pk

Sindh Coal Energy Board,Government of Sindh1st Floor, State life Building No.3Dr. Ziauddin Ahmed Road, Opp: CM House, Karachi, Pakistan.Tel: 0092-21-99207528-31Fax: 0092-21-99207534Website: www.sindhcoal.gos.pk

Pakhtunkhwa Hydel Development Organization (PHYDO)Plot # 38, Sector B-2, Phase-5, Hayatabad, Peshawar.Tel: 0092-91-9217330, 9217294, 9217488Fax: 0092-91-9217295Website: www.shydo.gov.pk

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