September 12, 2006	Tuesday	Sha'aban 18, 1427

ISLAMABAD, Sept 11: The Private Power and Infrastructure Board (PPIB) on Monday approved amendments in the standard formats of the Letter of Support and Performance Guarantee in lines with the policy guidelines to facilitate investors.

The measures were approved at the PPIB meeting held here with Minister for Water and Power Liaquat Ali Jatoi in the chair.

The amendments include minimum steps in tariff negotiations, flexibility in negotiations of agreements and help in quick processing.

The board also approved a proposal prepared by the PPIB regarding feasibility studies for thermal power plants based on gas from the smaller gas fields in Pakistan.

The Asian Development Bank (ADB) will provide technical assistance loan for the feasibility study. The scope of the ADB loan includes assisting the government to create an enabling environment for investments in infrastructure by the public and private sector.

The proposal, which will be further processed by the Planning Commission, entails the procedure for short-listing the promising sites through pre-defined criteria, and then undertaking detailed studies.

The gas in such small fields, which is otherwise uneconomical to pump into the main gas pipeline, will be ideal for power generation.

Liaquat Jatoi said that the signing of the agreements with Orient Power has been a success story, which is the result of dynamic policies of the present government.

While appreciating the efforts of all board members, and the PPIB team, he instructed them to expedite the negotiation process for agreements with the other IPPs and to provide all possible assistance to the project sponsors for finalisation of their respective agreements on time.

The government is giving top priority to the power sector and is facilitating the investors in power sector to meet the growing demand of electricity. He also advised the PPIB to keep working hard to stick to the timelines, and assured them that all critical issues will be addressed for smooth implementation of the projects.

The board also approved group insurance scheme for the PPIB employees. This will provide security to the families in case of death of any employee during service.—APP