Hydropower Financing Contractual and Energy Regulatory Frameworks Pakistan.pdf

8/16/2019 Hydropower Financing Contractual and Energy Regulatory Frameworks Pakistan.pdf

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Asian Institute of Technology

Pakistan Water and Power Development Authority

Date: 9‐10 March 2015

Venue: Avari Lahore

Energy Development Services Management and Technology Program

(EDSMAT) Phase 2

International Professional Program on

HYDROPOWER FINANCING

Pakistan – Thailand - Australia


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Dr. Roland Amoussou‐Guenou

Partner –

Vovan

&

Associes

Legalink

Lawyers, Patent & Notarial Service Attorneys

www.vovan‐lawgroup.com

Lecturer


Energy Regulatory

and

Contractual Frameworks of

Energy Projects in Pakistan


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I. GENERAL:

Pakistan Power

Challenges

and

Opportunities

a) Pakistan Power Sector

b) Pakistan Power Supply Chain

c) Pakistan Power Profile

d) Pakistan Power

Potential

e) Pakistan Power Efficiency

f) Pakistan Hydro Potential

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The Big Challenge: Doing Business and

Getting Electricity

6 EDSMAT Phase 2 ‐ Proposal


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II. SPECIFIC:

Solutions to

Address

the

Power

Problem

a) Conceptual approach and discussions on solution

to address

Pakistan

Power

problem

b) PPP

c) Project Finance

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III.

Role

of

WAPDA

a) Electricity production worldwide

b) Ratio of

hydro/thermal

mix

projects

c) Present installed capacity in Pakistan

d) Hydropower generation in various countries in the world

e) Electricity consumption by various countries

f) Storage for

different

rivers

in

the

world

g) Pakistan electricity Power demand 2007‐2030

h) Year wise hydel power induction

i) Idel

power

capacity

addition

in

the

last

6

decades

j) Pakistan hydel power potential

k) Pakistan hydropower development

l) Hydropower projects undertaken by WAPDA

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Role of WAPDA (Ctnued)

m) WAPDA Hydel stations in operation

n) Hydropwer projects under construction with

WAPDA

o) Project ready for construction

p) Projects

under

studies



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Barriers in the development of power potential in Pakistan

• Limited financial resources both for project studies and implementation.

• Long term investment returns starts coming after long time.

• Long investigations

and

gestation

period

of

hydropower

projects.

• Remote location of promising potential sites and dilapidated infrastructure.

• Lack of trained manpower.

• Non availability of local manufacturing facility for electro‐mechanical equipments.

• Lack of experienced local construction companies for medium to large size HPPs.

• Less response from private investors in implementing hydropower projects.

• Security situation.



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Asian Institute of Technology 18

Recommendations and Mitigations• Funds may be arranged/allocated on priority basis for the planning

and development of indigenous resources.

• Priority needs to be given for Construction of Mega hydropower projects.

• All identified potential sites be studied to feasibility level and

implementation may be scheduled on Long term basis.

• Sufficient manpower be got trained with short term courses and on job

training.

• Infra-structure in potential project areas be improved.

• Local manufacturing be encouraged with transfer of technology.

•Projects with PPIB may be implemented with Public-Private Partnership.

• Securi ty of potential areas be improved.


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Overview of Selected WAPDA Projects



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IV.

Power

Project

PPP

Case

Studies

a) African

‐Bujagali

hydropower

plant

(Uganda)

b) Asia

‐

Nam

Theun

2

Hydropower

plant

(Laos)

c) Pakistan

‐ Tarbela Dam

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V.

The

Policy

and

Institutional

Framework

• The overarching policy framework

• Basic PPP

policy

• Statement of intention of the government on how

PPP will be implemented, the process and how the

players will be treated

• See World Bank and PPIAF (Public Private Advisory

Facility) check lists

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VI.

The

Legal

Framework

• National legislation

• The UNCITRAL

PPP

guidelines

• PPP Legal perspectives UNESCAP

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VII.

The

Regulatory

Framework

• See NEPRA (National Electricity Regulatory

Authority)

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VIII. Contractual and Risk Management in

Power Projects

a) Contract negotiation

b) Contract standards

and

best

practices

c) Risk management

d) Due

diligence

in

PPP

projects

e) Tool kits

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Energy Contract Financing


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Asian Institute of Technology 88

EDSMAT

Phase

2 ‐

Proposal


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IX. Dispute Management and Dispute

Resolution


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a) Arbitration

b) ADR

c) Litigation

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Thank you

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Documents

Hydropower Financing Contractual and Energy Regulatory Frameworks Pakistan.pdf