The Marginal Fields Gas Prices will be set in accordance with Petroleum Exploration & Production Policy 2012 with an additional premium of US$ 0.25 MMBTU for the three zones as defined in Petroleum Exploration & Production Policy 2012. The Price determined in accordance with this clause will be hereinafter referred as “Base Price” will be allowed for pipeline specification.

Accordingly, the Government of Pakistan has devised an attractive policy package for attracting overseas investment and to facilitate the tapping of the domestic capital market to raise local financing for power projects. The main characteristics of this package are internationally competitive terms, attractive framework for domestic investors, reduction in local currency investment requirements, simplification of procedures, and steps to create and encourage a domestic corporate debt securities market.

The Government of Pakistan in March 1994 announced the Policy Framework and Package of Incentives for private sector power development in the country. It received a tremendous response albeit for all Thermal Plants. GOP now intends to encourage proposals for power generation based on indigenous resources namely its hydel resources. Hydel power being cheaper, will provide tariff relief to the consumers, utilize indigenous resources, involve Pakistani entrepreneurs and provide benefits of economic growth to the relatively backward parts of Pakistan.

This document describes the policy framework and the package of incentives that will be available to the prospective proposers interested in Bidding for these projects.

The ARE Policy 2011 supports the development of ARE in the form of alternative Fuel, Renewable Energy, and Fossil Fuel Hybrid. In particular, it aims to the harmonization of ARE-related policies among the government bodies; the creation of a conducive investment environment; the optimization of the impact of ARE in low-income areas; as well as the promotion of R&D and development of local capacity.

The Mechanisms for Determination of Tariff for Hydro Power Projects aims to provide a uniform, transparent, objective and predictable Mechanism and to remove ambiguities, that the sponsors of hydel projects and/or project companies, power procurers and power purchasers might have about the steps to be employed by NEPRA in determination of tariff of hydropower projects. This document shall not be read in a manner which undermines or over-rides any provision of NEPRA Act, Rules, Regulations and other applicable documents and in case of any conflict between this document and the NEPRA laws, the latter shall prevail over the former.

In order to remove ambiguities about various parameters for tariff determination and streamline the process of determination of tariff for Independent Power Producers (IPPs) consistent with the Policy for Power Generation Projects 2002, the Government of Pakistan under Section 7 (6) of the Regulation of Generation, Transmission, and Distribution of Electric Power Act (XL of) 1997 (NEPRA Act) has issued the following guidelines.

This document is divided in two parts: PART A: Guidelines for Setting Up of Private Power Projects Under Short Term Capacity Addition Initiative and PART B: Methodology for Processing of Proposals under Short Term Capacity Addition Initiative. Through these Guidelines, the Private Power and Infrastructure Board (PPIB), Ministry of Water & Power, Government of Pakistan invites technically and financially sound business parties to submit a proposal (the “Proposal”) for a Private Power Project (IPP) on Build, Own and Operate (BOO) basis (the “Project”).

To cater for the rapidly growing energy requirements of Pakistan, the Government has adopted a coherent approach of Energy Security. The Energy Security Plan is aimed at not only adding new power generation sources but also diversifying and tapping all possible fuel sources for power generation. It is estimated that Pakistan has a potential of generating more than 300 MW of electricity through cogeneration from its existing sugar industry. It will not only offset greenhouse gas emissions but would also help in generating additional sources of clean energy in the country.

The Government of the Russian Federation endorsed the present Decree in 2013 to set up mechanisms facilitating the introduction of renewable sources of energy on the wholesale electricity (capacity) market. The policy elaborates on the basic criteria and determines qualifications of a renewable power generation facility / plant.