KARACHI, March 20: The Private Power and Infrastructure Board (PPIB) has received expressions of interest (EoI) from 33 prospective investors for producing 5,800 megawatts of electricity in Pakistan under the Power Policy 2002.

This was stated by PPIB managing director Zafar Ali Khan while speaking at a roadshow on "investment opportunities in Pakistan power sector" here on Saturday. Board of Investment chairman Waseem Haqqie and KESC managing director Brig Tariq Saddozai were also present on the occasion.

"These proposals involve a cumulative investment of $5 billion," the PPIB chief said and added that so far the PPIB has issued letters of interest (LoI) to three potential investors in response to their EoIs for producing 1,700 mw.

"About 1,000 mw will be produced through hydel power plant and 700 mw through gas-fired power plant," Mr Khan said and added that this would involve an investment of $1.5 billion.

The PPIB chief said that other LoIs were at advanced stage. He said that the Power Policy 2002 offers attractive incentives such as exemption from income tax, including turnover rate tax and withholding tax on import.

It offers a five-per cent customs duty on plants not manufactured locally and no sales tax on plants and equipment for power generation.

Mr Khan said that most of the power generation proposals involve supply of gas and added that out of the total, 24 EoIs needed gas for generating 4,028 mw, while the rest for hydel, coal and oil-fired plants.

He pointed out that the delay in the issue of LoI was the shortage of gas supply in the country. He said that the power policy encouraged projects on hydel power generation.

The BoI chairman underlined the need for infrastructure development in oil and gas, water and power sectors.

Mr Haqqie said that the government had offered an open policy to foreign investment and providing every possible facilities to them, including 100 repatriation of equity. He pointed out that local investment was rising in power generation and industry, while macro-economic indicators were showing positive signs.

KESC MD Tariq Saddozai said that line losses (T&D) of the corporation had been cut from 40 per cent to 37 per cent in 2002-03, while financial losses had been reduced from Rs17.895 billion in 2001-02 to Rs13.89 billion in 2002-03.

Mr Saddozai said that KESC was restructuring its zones that had helped in creating facilities for consumers, reducing losses and improving recoveries. He said that entire city would be restructured in next three years.

He pointed out that metering of feeders and PMTs had increased revenues for KESC and discouraged power theft.

Referring to relief packages for consumers, he said that KESC owed Rs20 billion to its consumers and the corporation was offering relief package for the payment of these dues. He said that Rs2 billion dues were outstanding against government departments, Rs4 billion against industrial clients and the rest against domestic subscribers.-APP