ISLAMABAD, July 17: The National Electric Power Regulatory Authority has developed a mechanism to attract private sector investment in the field of hydropower generation.

The private sector in the past was 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.

The regulatory authority has now assured investors to provide them cost adjustments at engineering, procurement and construction stage.

The regulatory authority has also approved to determine tariffs for hydropower projects on the basis of feasibility report approved by the Private Power Infrastructure Board (PPIB) and its panel of experts.

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 to the authority.—APP