• Mira Power Limited (the “Company” or “MPL”) is an unlisted Public Limited Company, incorporated in 2003 under the Companies Ordinance, 1984 to develop, construct, own, operate and transfer the 102 MW Gulpur Hydropower Project located in Kotli District of Azad Jammu & Kashmir (the “Project”).
  • The Letter of Interest (“LOI”) for the Project was issued to the Company on March 12, 2005 vide Letter No. 1(101) PPIB-1017/05/PRJ by the Private Power & Infrastructure Board (“PPIB”), Ministry of Water & Power, Government of Pakistan.
  • Pursuant to the terms of the LOI and the 2002 Power Policy, the Sponsors conducted the detailed Feasibility Study of the Project through a consortium comprising of Associated Consulting Engineers (Pvt.) Limited (“ACE”), National Engineering Services Pakistan (Pvt.) Limited (“NESPAK”), Norconsulat International AS, Norway (“Norconsult”) to conduct a feasibility study for the Project which, after subsequent comments of the PPIB Panel of Experts was approved by PPIB on April 27, 2006.
  • The Company approached the Power Purchaser, for negotiations of the feasibility level tariff (“Feasibility Level Tariff”) under the provisions of Power Policy 2002 and Mechanism for Determination of Tariffs for Hydropower Projects by the National Electric Power Regulatory Authority (“NEPRA”).
  • Subsequent to agreement on the proposed tariff the Power Purchaser on September 17th, 2008 approached NEPRA for an approval of the proposed Feasibility Level Tariff. NEPRA after certain amendments issued its approval of the Feasibility Level Tariff on February 10th, 2009 vide its Letter NEPRA/R/TRF-116/MPL-2008/608-610.
  • Subsequently Letter of Support (“LOS”) was issued to the Company by PPIB on April 27, 2010 to achieve the Financial Closing of the Project. On account of various reasons the validity of LOS was extended till April 29th, 2012. Pursuant to the terms of the Amended LOS the Company submitted an EPC Level Tariff to the Power Purchaser on April 27, 2012.
  • Despite the extension in the validity of LOS, no material progress was made by the sponsors towards achieving the Financial Closing of the Project and Project was becoming virtually dormant due to various reasons including the lack of seriousness and experience of original sponsors and bad security and economic situation of Pakistan.
  • With a view to help Pakistan in fighting against acute energy crisis and to develop the Project on fast track basis a renowned South Korean Consortium comprising of Korea South East Power Company (“KOSEP”), Sambu Construction Company (“Sambu”) and Lotte Construction (“Lotte”) and STX Construction (“STX”) (collectively “Sponsors”) expressed their desire to fully acquire the Project.
  • PPIB issued the “no objection certificate” to the Sponsors to acquire the Project on 30 July 2012 with certain conditions including the satisfaction of pre-qualification criterion.
  • A formal Share Purchase Agreement (the “SPA”) was signed with the previous sponsors on 1 October 2012 after the completion of extensive financial, technical and legal due diligence.
  • Following the completion of various condition precedents and codal formalities, the acquisition process was completed on December 31, 2012 whereby 100% shareholding was transferred to the Sponsors.
  • The Company embarked on the process of full scale project development immediately and achieved considerable progress in short span of time including the completion of EPC bidding and LOI for financing from leading multilaterals.
  • Keeping in view the progress achieved by the Company in a short span of time and to allow reasonable time to achieve the financial closing, PPIB extended the validity of LOS till April 29, 2014 for achieving the Financial Close. The Amended and Restated LOS issued by PPIB is attached as Annex – A to this tariff proposal.