View of the Above, the Government of Sindh (Gos) Has Decided to Build, Own and Operate Generation Facilities at Various Industrial Estates of the Province

National Electric Power Regulatory Authority

.1; Islamic Republic of Pakistan

NEPRA Tower, Attaturk Avenue (East), G-511, Islamabad Registrar Ph:+92-51-9206500, Fax: +92-51-2600026 Web: www.nepra.org.pk, E-mail: [email protected]

No. NEPRA/R/DL/LAG-280/ je eCc- July 15, 2015

Mr. Najam Ul Hasnain, Chief Executive Officer, Sindh Nooriabad Power Company (Pvt.) Limited, 28, Army Housing Scheme, National Stadium Colony, Karachi.

Subject: Generation Licence No. IGSPL/64/2015 Licence Application No. LAG-280 Sindh Nooriabad Power Company PHASE-II (Pvt.) Limited (SNPCPL-II)

Reference: Your application vide letter No. Nil, dated Nil, received on August 21, 2014.

Enclosed please find herewith Generation Licence No. IGSPL/64/2015 granted by National Electric Power Regulatory Authority (NEPRA) to Sindh Nooriabad Power Company PHASE-II (Pvt.) Limited, pursuant to Section 15 of the Regulation of Generation, Transmission and Distribution of Electric Power Act (XL of 1997). Further, the determination of the Authority in the subject matter is also attached.

2. Please quote above mentioned Generation Licence No. for future correspondence. Enclosure: Generation Licence (IGSPL/64/2015) TA.LLK_A_ )T- (Syed Safeer Huss)ain Copy to: REGISTRAR c 1. Chief Executive Officer, Hyderabad Ele Supply Corn Limited (HESCO), Old State Bank Building, G.O.R Colony, Hyde

2. Chief Executive Officer, K-Electric Ltd, KE , Sunset Boulevard, Phase-II, DHA, Karachi.

3. Chief Executive Officer, NTDC, 4l4-WAPDA House, Lahore

4. Chief Operating Officer, CPPA-G, 107-WAPDA House, Lahore

5. Director General, Environment and Alternative Energy Department, Government of Sindh, Plot No ST/2/l, Sector 23, Korangi Industrial Area, Karachi.

6. Secretary, Energy Department, Government of Sindh, Lackson Building 3, 7th Floor, Sarwar Shaheed Road, Opposite Karachi Press Club, Karachi.

7. Chief Secretary, Government of Sindh, Sindh Secretariat, Karachi.

8. Secretary, Ministry of Water and Power, A-Block, Pak Secretariat, Islamabad. National Electric Power Regulatory Authority (NEPRA)

Determination of the Authority in the Matter of Application of Sindh Nooriabad Power Company PHASE-II (Pvt.) Limited for the Grant of Generation Licence

July 13, 2015 Case No. LAG-280

(A). Background

(i). The Electric Power Sector of the country is experiencing a Demand- Supply gap. In order to reduce the said deficit, all efforts are being made to develop indigenous resources. The Constitution of Pakistan, empowers the provinces to set up generation facilities of any size, location and fuel of their choice.

(ii). In view of the above, the Government of Sindh (GoS) has decided to Build, Own and Operate generation facilities at various industrial estates of the province. One of such projects is proposed to be set up at SITE, Nooriabad and envisaged to be developed on Public Private Partnership mode/basis. In order to implement the project, the GoS has incorporated a Special Purpose Vehicle (under the provisions of the Companies Ordinance 1984) in the name of Sindh Nooriabad Power Company PHASE-II (Pvt.) Limited (SNPCPL-II-11).

(iii). The Industrial estate of SITE Nooriabad is located within the Service Territory of Hyderabad Electric Supply Company Limited (HESCO). Therefore, SNPCPL-II decided approaching HESCO for supplying electric power from its prospective Generation Facility.

(B). Filing of the Application

(i). In accordance with Section-15 of Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 (the NEPRA Act),

Page 1 of 11 SNPCPL-II filed/submitted an application on August 21, 2014 requesting for the grant of Generation Licence.

(ii). The Registrar examined the submitted application to confirm its compliance with the NEPRA Licensing (Application and Modification Procedure) Regulations, 1999 (the "Regulations"). The Registrar observed that the application lacked some of the required information/documentation as stipulated in the Regulations. Accordingly, SNPCPL-II was directed to submit the missing information/documentation. SNPCPL-II completed the missing information/ documentation on October 09, 2014. The Authority considered the matter in its Regulatory Meeting (RM-14-758), held on November 18, 2014 and found the form and content of the application in substantial compliance with Regulation-3 of the Regulations. Accordingly, the Authority admitted the application for consideration of the grant of Generation Licence as stipulated in Regulation-7 of the Regulations. The Authority approved the advertisement [containing (a). the prospectus; (b). a notice to the general public about the admission of the application of SNPCPL-II], inviting the general public for submitting their comments in the matter as stipulated in Regulation- 8 of the Regulations. Further, the Authority also approved the list of the relevant stakeholders for informing about the admission of the application of SNPCPL-II and for providing their comments to assist the Authority in the matter. Accordingly, the advertisement was published in one Urdu and one English National Newspaper on November 22, 2014.

(iii). Apart from the above, separate letters were also sent to Government Ministries, their Attached Departments, Representative Organizations and Individual Experts etc. on November 25, 2014. The said stakeholders were urged to submit their views/comments for the assistance of the Authority.

(C). Comments of Stakeholders

(i). In reply to the above, the Authority received comments from four (04) stakeholders. These included HESCO, Energy Department Govt. of Sindh (EDGoS), Central Power Purchasing Agency (CPPA) of National Transmission & Despatch Company Limited (NTDC) and Ministry of Water & Power (MoW&P). The salient

Page 2 of 11 points of the comments offered by the above stakeholder are summarized in the following paragraphs: -

(a). HESCO commented that it issued Letter of Intent (Lol) to SNPCPL-II but the sponsors of project failed to achieve milestones within the stipulated time therefore, the Lol was cancelled. Further, HESCO stated that lately, a large number of private power projects of approximately 1800 MW are in pipeline against its demand of 800 MW. HESCO submitted that in view of the future projects and the Demand-Supply situation, it cannot support the grant of Generation Licence to SNPCPL-II as Lol stands terminated. However, SNPCPL-II may apply for a fresh Lol, if it is still interested in selling to HESCO;

(b). EDGoS supported the request of SNPCPL-II for the grant of Generation Licence;

(C). CPPA did not express any reservations pertaining to the request of SNPCPL-II, subject to meeting with the conditions laid down in the NEPRA Licensing (Generation) Rules 2000 (the Rules); and

(d). MoW&P commented that the Authority may process the application of SNPCPL-II as per the provisions of NEPRA Act and Policy guidelines of the Government.

(ii). The Authority examined the above comments of the stakeholders and found to be supportive except to the observations of HESCO. In view of the said, the Authority decided seeking perspective of SNPCPL-II on the observations of HESCO in terms of Regulation 9(2) of the Regulations. In its rejoinder, SNPCPL-II clarified that the proposal was submitted to HESCO on September 18, 2012. The Lol was issued on March 25, 2014 after a lapse of almost one and half years which shows the non-seriousness of the DISCO towards the Investor(s). SNPCPL-I1 objected the Supply-Demand projections of HESCO and confirmed that the project has

Page 3 of 11 commitment of Natural Gas for twenty (25) years therefore, denying purchase of electric power from such projects is not justified. SNPCPL-II stated that from the submission of HESCO, it can be concluded that HESCO is not interested in purchasing power from it.

(D). Change of Power Purchaser

(i). In consideration of the above, SNPCPL-Il made a fresh submission to the Authority stating that due to lack of interest of HESCO, it has decided to change the Power Purchaser. In this regard, SNPCLPL submitted that its power purchaser may be changed from HESCO to K-Electric Limited (KEL).

(ii). The Authority considered the request of SNPCPL-II on the change of Power Purchaser in its Regulatory Meeting (RM-15-36), held on January 13, 2015. The Authority decided seeking a clarification from the Gas Supplier i.e. Sui Southern Gas Company Limited (SSGC) whether the change of Power Purchaser will have an implication on the Gas Supply Agreement (GSA) or otherwise?

(iii). In reply to above, SSGC informed that it initialed a GSA for supplying 10.00 MMCFD of pipeline quality Natural Gas to SNPCPL-II for a period of twenty five (25) years. SSGC also confirmed that the change of the power purchaser from HESCO to KEL will not have any impact on the executed GSA with SNPCPL-II.

(E). Consideration of Request

(i). The Authority considered the above submissions of SSGC and decided issuing an addendum to the already published notice dated November 22, 2014. The addendum was published in the press on dated February 26, 2015.

(ii). In the above addendum the stakeholders, interested/affected persons and the general public were informed about the change of power purchaser from HESCO to KEL. Further, the above stakeholders were directed for submitting comments either in favor or against the grant of Generation Licence.

Page 4 of 11 (iii). Apart from the above, Government Ministries their Attached Departments, Representative Organizations and Individual Experts etc. were also informed about the change of power purchaser through letters dated March 03, 2015. Similarly the said organizations and individuals were also directed for submitting their views in the matter.

(F). Fresh Comments

(i). In reply to the above, the Authority received comments from HESCO, SSGC, CPPA and EDGoS. In their fresh comments HESCO, SSGC and EDGoS maintained their respective earlier stance as explained above. Whereas, CPPA submitted that the company intends to sell power to KEL. Therefore, the related power evacuation plan is required to identify the route of dispersal of power from the Generation Facility to the network of KEL. This may include usage of network(s) of HESCO or NTDC. However, in case of involvement of the network of NTDC, the company will have to submit "Interconnection Study Report" for vetting/approval of Planning Department of NTDC. In the meantime, CPPA/NTDC is not in a position to offer its specific comments on the subject application of the company.

(ii). In view of the above observations of CPPA, the Authority considered it appropriate seeking the perspective of SNPCPL-II. In its reply, SNPCPL-Il submitted that on January 13, 2015 it held discussions with NTDC for working out an arrangement for supplying power to KEL. However, NTDC showed its inability to transmit power to KEL within the timelines specified for the Commercial Operation of the Generation Facility of SNPCPL-II. Resultantly, SNPCPL-II approached Sindh Transmission & Dispatch Company Limited (STDCL), a wholly-owned entity of GoS for providing assistance in interconnection with Grid Station of KEL. In this regard, it is submitted that STDCL has agreed to lay a 132 kV, Double Circuit (approximately 85-90 KM) Transmission Line from the Generation Facility of SNPCPL-II to the Grid Station of KEL. The Tender for carrying out work on the proposed Transmission Line has already been published which will be completed in seven (07) months from the date of award.n

L-1

Page 5 of 11 (G). Analysis of the Authority

(i). The key features of the application under consideration are that SNPCPL-II is planning to set up a Natural Gas based Generation Facility/Thermal at 6-Kiolmeter Nooriabad—Jhimpir Road, SITE Nooriabad, Deh Kallo Khohar, Tehsil & Taluka Thano Bola Khan, District Jamshoro in the Province of Sindh. In this regard, SNPCPL-II has approached the Authority for the grant of Generation Licence for its above mentioned Generation Facility/Thermal Power Plant.

(ii). The Authority has examined the entire case in details including the information provided by SNPCPL-II with its application for Generation Licence (which included the Lol, the FS, the Interconnection and Dispersal Arrangement Studies), the comments of the stakeholders, the rejoinders of SNPCPL-II on the comments of the stakeholders and other related documents including the NEPRA Act, relevant Rules and Regulations.

(iii). In this regard, the Authority has come across certain issues including (a). Reluctance of HESCO to purchase power from SNPCPL-II; (b). Lack of Interest of NTDC and HECO to wheel Electric Power from SNPCPL-II; and (c). Setting Up of the Sindh Transmission and Despatch Company Limited (STDCL) for the Grant of Transmission Licence in the Province of Sindh. The findings of the Authority on the said observations are elaborated in the subsequent paragraphs.

(iv). Reluctance of HESCO to purchase power from SNPCPL-II; The Authority has considered the matter in light of the provisions of the NEPRA Act and the relevant rules and regulations framed thereunder. The Authority has observed that under Section-21 of the NEPRA Act, a Distribution Company/Licensee has exclusive right in providing distribution services in its service territory. In order to provide the distribution services to its consumers, the Distribution Companies/Licensees are obligated to arrange electric power from different sources offered. In this regard, the Authority observes that HESCO in the particular case of SNPCPL-II has not acted pragmatically at all by denying the offered Natural Gas

Page 6 of 11 based electric power by SNPCPL-II. In its comments HESCO submitted that it terminated the Lol issued to SNPCPL-II as it failed to comply with the terms and conditions of the same however, no exact details of the violation of SNPCPL-II was provided to the Authority. Another justification provided by HESCO in not purchasing electric power from SNPCPL-II is that due to large number of prospective power plants, planned to be installed in its service territory, it will have surplus generation as compared to its demand. The Authority considers that the position taken by HESCO is contrary to the Policies of Government of Pakistan (GoP), to attract the private investors to the Power Sector. The Authority is well aware of the fact that in order to meet the current power deficit, even small captive power plants are being pursued to supply any surplus power available to utilities including HESCO. The discouraging attitude of HESCO has forced SNPCPL-II to change its plan and approach KEL for supplying electric power from its prospective Generation Facility thereby, denying the cheap electricity to its consumers. However, in consideration of the fact that the SNPCPL-II has been able to arrange another Power Purchaser (i.e. KEL), the Authority does not consider it prudent to indulge itself in any further debate on the issue. However, the Authority directs HESCO to be careful in future in such matters and not to decline the offered electric power from any prospective investor without any cogent/lawful justification.

(v). Lack of Interest of NTDC and HESCO to wheel Electric Power from SNPCPL-II; The Authority has observed that under the Licences granted to HESCO and NTDC, these entities are obligated to offer their system on a non discriminatory basis to any Generation Company. In the particular case of SNPCPL-II the said entities have acted irrationally. The Authority directs these entities to adhere to terms and conditions of their respective Licences and do not deny any prospective Generation Company intended using their system for wheeling of electric power without any convincing/lawful justification.

(vi). Setting Up of the STDCL for the Grant of Transmission Licence in the Province of Sindh; During the processing of the case of SNPCPL-II, it was brought to the notice of the Authority that the EDGoS in exercise of the powers conferred under Article 157(2) of the Constitution of Pakistan has constituted a Licensing Committeec i

Page 7 of 11 through its Notifications (No. ED.SO(Admin)16-8/STDC/2015 dated March 04, 2015 and ED.SO(Admin)16-8/ STDC/2015 dated May 05, 2015) for grant of Transmission Licences within the Province by adopting the procedure followed by NEPRA until the establishment of Provincial Regulator i.e. Sindh Electric Power Regulatory Authority (SERA). In this regard, the Authority will like to highlight that Article 157(2) has to be read with the relevant Schedule of the Constitution of Pakistan, in particular, Entry 4 of Part II of Schedule 4 which clarifies that electricity is a subject under Federal Legislative List. Therefore, only a Federal law shall provide the framework for regulation of generation, transmission and distribution of electric power in the country. In consideration of the said, it is clarified that currently the NEPRA Act is the applicable law and it lays down a comprehensive legal/regulatory framework dealing with the matters relating to Electric Power Sector. The Authority established under Section-3 of the NEPRA Act is the competent forum mandated, inter alia, to grant licences is respect of generation, transmission and distribution of electric power in the country. In consideration of the said, a company/undertaking (public or private sector) engaged in any of aforementioned provision of services of electric power is required to comply with the provisions of the NEPRA Act and get the required licence from the Authority. Accordingly, the Authority directs STDCL to apply for the grant of Special Purpose Transmission Licence as stipulated in Section-19 of the NEPRA Act, for its transmission facilities connecting the Generation Facility of SNPCPL-I1 with the grid station of the Power Purchaser i.e. KEL.

(vii). In light of the explanation given above, the Authority is of the considered view that issues arising out of the application of SNPCPL-II for the grant of Generation Licence stand resolved. Therefore, the Authority considers that the case of SNPCPL-II for the grant of Generation Licence merits consideration in terms of the provisions of the NEPRA Act, the Rules and Regulations.

(H). Grant of Generation Licence

(i). Energy is fundamental input to economic activity and thus to human welfare and progress. The importance of electricity in the development of the economy of any country is beyond any doubt. The economic growth of any country is directly linked with the availability of safe, secure, reliable and cheaper supply of

Page 8 of 11 electricity. In view of the said reasons, the Authority is of the considered opinion that for sustainable development all indigenous resources of power generation must be developed on priority basis in the public and private sector, including Coal, Hydel, Wind, Solar and other Renewable Energy.

(ii). The existing energy mix of the country is heavily skewed towards the thermal power plants, mainly operating on imported fuel (i.e. furnace oil). The import of fuel for electric power generation not only creates a pressure on the precious foreign exchange reserves of the country but is also an environmental concern. Therefore, in order to achieve sustainable development it is imperative that environment friendly indigenous resources are given priority for power generation and their development is encouraged. In the particular case of SNPCPL-II, the project has confirmed Natural Gas availability for a period of twenty five (25) years. Resultantly, the project of SNPCPL-II will generate gas based cheaper electricity therefore, the project will be extremely beneficial as its tariff is expected to be significantly lower than other upcoming projects. Further, the Project will also be beneficial to the environment as it will be using environmental friendly resource for the generation of power. The project will help in enhancing energy security of the country not only by using the locally available Natural Gas for power generation but also reducing dependence on imported furnace oil. In consideration of this, the Authority considers the proposal of SNPCPL-II for the setting up of the Natural Gas based Power Plant at SITE Nooriabad plausible.

(iii). The term of a Generation Licence under the Rule-5 of the Rules, is to be commensurate with the maximum expected useful life of the units comprised in a Generating Facility. According to the information provided by SNPCPL-II the proposed Gas Engines will be brand new and will have a useful life of about 200,000 running hours which translates into twenty five (25) years if 8000 running hours are assumed annually. SNCPCPL has requested that the term of the Generation License may be fixed accordingly. The Authority considers that estimation of the useful life of the Gas Engines comprising the facility of SNPCPL-II is reasonable. Accordingly, the Authority fixes the term of the Generation Licence to twenty five (25) years from the Commercial Operation Date of the Generation Facility.

Page 9 of 11 (iv). Regarding the Tariff, it is hereby clarified that under Section-7(3)(a) of the NEPRA Act, the determination of tariff, rate and charges etc. is the sole responsibility of the Authority. In terms of Section-31 of the NEPRA Act read with relevant provisions of the NEPRA (Tariff Standards and Procedure) Rules, 1998, a Generation Company may file a Tariff petition for determination of its Generation Tariff. Further, in terms of Section-32 of the NEPRA Act read with relevant provisions of the NEPRA Interim Power Procurement (Procedures and Standards) Regulations, 2005, a Generation Company may approach a Transmission or Distribution company for filing a Power Acquisition Request and for negotiating a Power Acquisition Contract. Therefore, SNPCPL-II may opt either of the methodology and approach the Authority accordingly. Further, the Authority directs SNPCPL-II to charge only such tariff from the Power Purchaser as determined, approved or specified by the Authority as stipulated in Rule-6 of the Rules.

(v). The proposed Generation Facility/Thermal Power Plant of SNPCPL-II for which Generation Licence has been sought, is based on Natural Gas which is considered a cleaner source and does not cause pollution. However, the operation of the Generation Facility may cause some other type of pollution including soil pollution, water pollution and noise pollution etc. The Authority has considered these aspects and has made SNPCPL-II obligatory to comply with the environmental rules and regulations. Further, the Authority directs SNPCPL-II to submit a report on a bi- annual basis confirming that its Generation Facility is operating in compliance with required Environmental Standards of the Environmental Protection Agency of GoS.

(vi). In view of the above, the Authority hereby decides to approve the grant of Generation Licence to SNPCPL-II on the terms and conditions as set out in the Generation Licence annexed to this determination. The grant of Generation Licence will be subject to the provisions contained in the NEPRA Act, relevant rules, regulations framed thereunder and the applicable documents.CI,

Page 10 of 11

Authority

Syed Masood-ul-Hassan Naqvi (Member)

Himayat Ullah Khan (Member)

Khawaja Muhammad Naeem (Member) e3-?- oevii

Maj. (R) Haroon Rashid (Member)/(Vice Chairman) 7.0&r Le_Ave-

Brig. (R) Tariq Saddozai (Chairman)

Page 11 of 11

Generation Licence Sindh Nooriabad Power Company Phase-II (Pvt ) Limited 6-Kiolmeter Nooriabad-Jhimpir Road SITE Nooriabad, Deh Kallo Khohar Tehsil & Taluka Thano Bola Khan District Jamshoro in the Province of Sindh Article-1 Definitions

1.1 In this Licence

(a). "Act" means "the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997";

(b). "Authority" means "the National Electric Power Regulatory Authority constituted under Section-3 of the Act";

(c). "Bus Bar" means a system of conductors in the generation facility of the Licensee on which the electric power of all the generators is collected for supplying to the Power Purchaser;

(d). "Commercial Operations Date (COD)" means the day immediately following the date on which the generation facility of the Licensee is commissioned;

(e). "Grid Code" means the grid code prepared by NTDC and approved by the Authority, as it may be revised from time to time by NTDC with any necessary approval by the Authority;

(f). "IEC" means International Electrotechnical Commission or any other entity created for the like purpose and its successors or permitted assigns;

(g). "IEEE" means the Institute of Electrical and Electronics Engineers and its successors or permitted assigns;

(f). "KEL" means "K Electric Limited and its successors or permitted assigns as distribution company engaged in the distribution of electric power;

Page 2 of 6 Generation Licence Sindh Nooriabad Power Company Phase-II (Pvt)) Limited 6-Kiolmeter Nooriabad-Jhimpir Road SITE Nooriabad, Deh Kallo Khohar Tehsil & Taluka Thano Bola Khan District Jamshoro in the Province of Sindh (i). "Licensee" means "Sindh Nooriabad Power Company Phase-II (Pvt.) Limited" and its successors or permitted assigns;

(j). "NTDC" means National Transmission & Despatch Company Limited and its successors or permitted assigns;

(k). "Power Purchase Agreement" means the power purchase agreement, entered or to be entered into by and between the Power Purchaser and the Licensee, for the purchase and sale of electric energy generated by the generation facility, as may be amended by the parties thereto from time to time;

(I). "Power Purchaser" means KEL;

(m). "Regulation" means "the National Electric Power Regulatory Authority Licensing (Application & Modification Procedure) Regulations, 1999" as amended or replaced from time to time;

(n). "Rules" mean "the National Electric Power Regulatory Authority Licensing (Generation) Rules, 2000"; and

(o). "STDCL" means Sindh Transmission and Despatch Company Limited and its successors or permitted assigns.

1.2 Words and expressions used but not defined herein bear the meaning given thereto in the Act or in the Rules.

Article-2 Application of Rules

This Licence is issued subject to the provisions of the Rules, as amended from time to time. 1( 1/

Page 3 of 6

3.1 The location, size (capacity in MW), technology, interconnection arrangements, technical limits, technical and functional specifications and other details specific to the generation facility/thermal power plant of the Licensee are set out in Schedule-I to this Licence.

3.2 The net capacity of the generation facility/thermal power plant of the Licensee is set out in Schedule-II hereto.

3.3 The Licensee shall provide the final arrangement, technical and financial specifications and other specific details pertaining to its generation facility/thermal power plant before its COD.

Article-4 Term of Licence

4.1 The Licence is granted for a term of twenty five (25) years from the COD of the generation facility/thermal power plant.

4.2 Unless suspended or revoked earlier, the Licensee may apply for renewal of the Licence within ninety (90) days prior to the expiry of the term of the Licence, as stipulated in the Regulations.

Article-5 Licence fee

After the grant of the Generation Licence, the Licensee shall pay to the Authority the Licence fee, in the amount and manner and at the time set out in the National Electric Power Regulatory Authority (Fees) Rules, 2002.

Article-6 Tariff

The Licensee shall charge only such tariff which has been determined, approved or specified by the Authority in terms of Rule-6 of the Rules.

Page 4 of 6

7.1 The Licensee shall participate in such manner as may be directed by the Authority from time to time for development of a Competitive Trading Arrangement The Licensee shall in good faith work towards implementation and operation of the aforesaid Competitive Trading Arrangement in the manner and time period specified by the Authority. Provided that any such participation shall be subject to any contract entered into between the Licensee and another party with the approval of the Authority.

7.2 Any variation or modification in the above-mentioned contracts for allowing the parties thereto to participate wholly or partially in the Competitive Trading Arrangement shall be subject to mutual agreement of the parties thereto and such terms and conditions as may be approved by the Authority.

Article-8 Maintenance of Records

For the purpose of sub-rule (1) of Rule-19 of the Rules, copies of records and data shall be retained in standard and electronic form and all such records and data shall, subject to just claims of confidentiality, be accessible by authorized officers of the Authority.

Article-9 Compliance with Performance Standards

The Licensee shall comply with the relevant provisions of the National Electric Power Regulatory Authority Performance Standards (Generation) Rules 2009 as amended from time to time.

Article-10 Compliance with Environmental Standards

10.1 The Licensee at all times shall comply with the environmental standards as may be prescribed by the relevant competent authority as amended from time to time.1-2

Page 5 of 6 Generation Licence Sindh Nooriabad Power Company Phase-II (Pvt ) Limited 6-Kiolmeter Nooriabad-Jhimpir Road SITE Nooriabad, Deh Kallo Khohar Tehsil & Taluka Thano Bola Khan District Jamshoro in the Province of Sindh

10.2 The Licensee shall provide a certificate on a bi-annual basis, confirming that the operation of its generation facility is in line with environmental standards as prescribed by the relevant competent authority.

Article-11 Power off take Point and Voltage

The Licensee shall deliver power to the Power Purchaser at the outgoing bus bar of its grid station. The up-gradation (step up) of generation voltage up to the required Interconnection voltage level will be the responsibility of the Licensee.

Article-12 Provision of Information

12.1 The obligation of the Licensee to provide information to the Authority shall be in accordance with Section-44 of the Act.

12.2 The Licensee shall be subject to such penalties as may be specified in the relevant rules made by the Authority for failure to furnish such information as may be required from time to time by the Authority and which is or ought to be or has been in the control or possession of the Licensee.

Article-13 Design & Manufacturing Standards

All the components of the generation facility/power plant shall be designed, manufactured and tested according to the latest IEC, IEEE or any other equivalent standards. All plant and equipment shall be unused and brand new.cl

Page 6 of 6 Generation Licence Sindh Nooriabad Power Company Phase-II (Pvt ) Limited 6-Kiolmeter Nooriabad—Jhimpir Road SITE Noonabad, Deh Kallo Khohar Tehsil & Taluka Thano Bola Khan District Jamshoro in the Province of Sindh

SCHEDULE-I

The Location, Size (i.e. Capacity in MW), Type of Technology, Interconnection Arrangements, Technical Limits, Technical/Functional Specifications and other details specific to the Generation Facilities of the Licensee are described in this Schedule

Page 1 of 10 of Schedule -I

Generation Licence Sindh Nooriabad Power Company Phase-II (Pvt ) Limited 6-Kiolmeter Nooriabad—Jhimpir Road SITE Nooriabad, Deh Kallo Khohar Tehsil & Taluka Thano Bola Khan District Jamshoro in the Province of Sindh Interconnection Facilities/ Transmission Arrangements for Dispersal of Power from the Generation Facility/Thermal Power Plant

The electric power from the Natural Gas based generation facility/thermal power plant of the Licensee will be dispersed to the load center of KEL by constructing a new transmission line.

(2). The Interconnection Facilities (IF)/Transmission Arrangements (TA) for supplying to KEL shall be at 132 KV level. The IF/TF for supplying to KEL will be consisting of a 132 KV Double Circuit (D/C) Transmission Line* (measuring about 90 Kilometer) connecting the generation facility/thermal power plant with KDA-33 Grid Station of KEL.

(3). Any change in the above mentioned IF/TA for dispersal of electric power as agreed by the Licensee and the Power Purchaser shall be communicated to the Authority in due course of time.0

The Transmission Line will be constructed, owned, operated and maintained by STDCUSindh Transmission and Despatch Company Limited for which it will be submitting an application for the grant of Special Purpose Transmission Licence as stipulated in Section-19 of the Act

Page 6 of 10 of Schedule -I

Generation Licence Sindh Nooriabad Power Company Phase-II (Pvt)) Limited 6-Kiolmeter Nooriabad—Jhimpir Road SITE Nooriabad, Deh Kallo Khohar Tehsil & Taluka Thano Bola Khan District Jamshoro in the Province of Sindh Detail of Generation Facility/Thermal Power Plant

(A). General Information

Name of Company/ Sind Nooriabad Power Company Phase-II (i). Licensee (Pvt.) Limited.

Registered /Business 28, Army Housing Society, National Stadium (ii). Office Colony, Karachi, in the Province of Sindh

6-Kiolmeter Nooriabad—Jhimpir Road, SITE Nooriabad, Deh Kallo Khohar, Tehsil & Taluka (iii ). Plant Location Thano Bola Khan, District Jamshoro in the Province of Sindh

Type of Generation (iv). Thermal Generation Facility Facility

(B). Plant Configuration

Installed Capacity (i). (Gross ISO) of the 52.10 MW Generation Facility

Combined Cycle Power Plant (with Gas (ii). Type of Technology Engines, Heat Recovery Steam Generators and Steam Turbine)

Gas Engine 5 x 9.72 MW Number of (iii). Units/Size (MW) Steam 1 x 3.50 MW Turbine

Gas Engines Wartsila 20V34SG (iv). Unit Make & Model Steam Shin Nippon Turbine

Expected COD of the (v). January 31, 2016 generation facility

Page 8 of 10 of Schedule -I

Generation Licence Sindh Nooriabad Power Company Phase-II (Pvt.) Limited 6-Kiolmeter Nooriabad—Jhimpir Road SITE Nooriabad, Deh Kallo Khohar Tehsil & Taluka Thano Bola Khan District Jamshoro in the Province of Sindh

Minimum Expected Life of the generation 25 Years Facility from the COD

(C). Fuel Details

(i). Main Fuel Natural Gas (Pipeline Quality)

.. AI ternative/Back Up- 0 1) Not Applicable (N/A) Fuel

(iii) Start-Up Fuel Same as Main fuel i.e. Natural Gas

Fuel Source (iv). Indigenous (Imported/Indigenous)

(iii). Fuel Supplier Sui Southern Gas Company Limited

(iv). Supply Arrangement Through Pipeline

(D). Emission Values (Main Fuel)

(i). SOX 0 mg/Nm3

(ii). NOx 200 mg/Nm3

(iii). CO 500 mg/Nm3

(iv). PM10 10 mg/Nm3

(E). Cooling System

Cooling Water Ground/Well water with Closed Cyclen- Source/Cycle "1/

Page 9 of 10 of Schedule -I Generation Licence Sindh Nooriabad Power Company Phase-II (Pvt ) Limited 6-Kiolmeter Nooriabad—Jhimpir Road SITE Nooriabad, Deh Kallo Khohar Tehsil & Taluka Thano Bola Khan District Jamshoro in the Province of Sindh

(F). Plant Characteristics

(i). Generation Voltage 11 KV

(ii). Frequency 50 Hz

(iii). Power Factor 0.8 (Lagging) -0.9 (Leading)

Automatic Generation (iv). Not Applicable Control (AGC)

(v). Ramping Rate 9.8KW/Sec

Time required to Synchronize to Grid (vi). 131 sec and loading the complex to full load.

Page 10 of 10 of Schedule -I Generation Licence Sindh Nooriabad Power Company Phase-II (Pvt ) Limited 6-Kiolmeter Nooriabad—Jhimpir Road SITE Nooriabad, Deh Kallo Khohar Tehsil & Taluka Thano Bola Khan District Jamshoro in the Province of Sindh

SCHEDULE-II

The Installed/ISO Capacity (MW), De-Rated Capacity At Mean Site Conditions (MW), Auxiliary Consumption (MW) and the Net Capacity At Mean Site Conditions (MW) of the Generation Facilities of Licensee is given in this Schedule

Page 1 of 2 of Schedule-II Generation Licence Sindh Nooriabad Power Company Phase-II (Pvt.) Limited 6-Kiolmeter Nooriabad—Jhimpir Road SITE Nooriabad, Deh Kallo Khohar Tehsil & Taluka Thano Bola Khan District Jamshoro in the Province of Sindh

SCHEDULE-II

Total Gross Installed Capacity (1). 52.10 MW of the Generation Facility

De-rated Capacity of Generation (2). Facility at Reference Site 52.10 MW Conditions

1 Auxiliary Consumption of the 02.08 MW (31' Generation Facility

Total Installed Net Capacity of (4). Generation Facility at Reference 50.02 MW Site Condition

Note

All the above figures are indicative as provided by the Licensee. The Net Capacity available to Power Purchaser for dispatch will be determined through procedure(s) contained in the Power Purchase Agreement or any other applicable document(s)n

Page 2 of 2 of Schedule-II