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Letter of Intent –Project Requirements / Milestones to be achieved for Wind Project Development

AEDB welcome s the interest of national and international investors for wind power project development at potential sites in Pakistan. Presently Independent Power Producers (IPPs) are working according to Renewable Energy Policy 2006 for which the requirements for obtaining LOI and Milestones to be achieved are as under:

Requirements of LOI

The interested investors are required to submit proposal to AEDB containing following information for issuance of Letter of Intent (LOI):

  1. Statement of qualification of project sponsors, listing relevant corporate experience, personnel, and financial capacity. Please indicate financial capacity of the Project Sponsor(s) to carry out the proposed renewable energy power project based on. its audited financial reports for the last three years or any other relevant supporting material.
  2. Relevant corporate experience of the project sponsor(s).
  3. Project location (including geographical or GPS coordinates). Make sure that Project site should be located in environmentally protected sites.
  4. The availability of resource potential for the proposed RE project at the proposed location.
  5. Proposed net installed capacity (MW) and expected annual energy output (MWh)
  6. Basic outline of plant and structures.
  7. Summary implementation plan, committing milestones for project preparation,implementation and completion date. This shall include the business plan of the proposed project including but not limited to technology, human resource plan and project financing options.
  8. Availability and distance of grid from the proposed site and estimated distance from the nearest 132 kV or 11 kV line or grid station.
  9. The availability of the land for the proposed project within the term of LOI.

Proposal containing said information will be reviewed by AEDB within fifteen days and then upon the submission of Bank Guarantee the Letter of Intent (LOI) will be issued to IPP of relevant capacity.

Milestones to be achieved by IPP for respective wind power project.

Following are the project milestones to be achieved by project developer for their wind power project according to Renewable Energy Policy 2006.

S.No Activity for Normal Track development Activity for Fast Track Development
1 Submission of proposal by Sponsors Submission of proposal by Sponsors
2 Review of proposal by AEDB. Review of proposal by AEDB
3 Submission of Bank Guarantee and Project Facilitation Fee by Sponsor Submission of Bank Guarantee and Project Facilitation Fee by Sponsor
4 Issuance of Letter of Intent (LOI) by AEDB Issuance of Letter of Intent (LOI) by AEDB
5 Initial time for Feasibility Study and term of the LOI -
6 Application for tariff determination and grant of Generation License to NEPRA by Sponsors (upon approval of Feasibility) Application for approval of Upfront Tariff for respective project / Generation License
7 Generation License / Tariff approval from NEPRA. -
8 Submission of Performance Guarantee by Sponsors upon acceptance of tariff determined by NEPRA Submission of Performance Guarantee by Sponsors upon acceptance of tariff determined by NEPRA
9 Issuance of LOS by AEDB Issuance of LOS by AEDB
10 Signing of Energy Purchase Agreement & Implementation Agreement Signing of Energy Purchase Agreement & Implementation Agreement
11 Financial Close (FC) Financial Close (FC)

* Fast track project are the projects developed on the upfront tariff and accepting certain conditions / milestones for priority allocation of land.