Hydropower generation: Nepra develops mechanism to attract investment

ISLAMABAD  - The National Electric Power Regulatory Authority (NEPRA) has developed a mechanism to attract private sector investment in the field of hydropower generation. The private sector in the past has been reluctant to invest in the hydropower projects in view of uncertainty of costs associated with geological surprises, environmental issues including resettlement problems and long gestation period. In order to resolve these difficulties and promote hydropower projects, NEPRA has now assured the investors to provide them cost adjustments at engineering, procurement & construction stage. According to NEPRA here Thursday, it has also approved to determine the tariffs for hydropower projects on the basis of feasibility report approved by the Private Power Infrastructure Board (PPIB) and its Panel of Experts. The New mechanism has been developed after comprehensive consultations with potential investors as well as relevant government agencies. After the development of mechanism for tariff determination, an application for determination of tariff for 840 MW power project (Suki Kinari Hydropower Project at Paras Village of Kunhar River, District Mansehra, (NWFP) has already been submitted in NEPRA. It is hoped that the new tariff mechanism will encourage other potential investors who also want to come for hydropower generation.

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