PROCEDURE FOR THE DEVELOPMENT OF HYDROPOWER PROJECTS UPTO 50 MW IN THE TERRITORY OF AJK

The Government of Azad Jammu & Kashmir (GoAJK) has amended and adopted Policy for Power Generation Projects Year 2002 vide notification # 2472-84/2006 dated 14.03.2006 promulgated by GOP and has accorded the approval of AJK Simplified Framework for Fast Track Development of Hydropower Projects in AJK,.

As per para 28 of the Power Policy the Provinces / AJK can manage investment for projects upto 50 MW.

  • 1. Registration of Firms/companies with AJK PPC against US$ 200 (Non-refundable) on the basis of first come first served or through advertisement for raw sites and through Competitive Bidding for solicited sites.
  • 2. Issuance of Pre-qualification Documents (PQDs) against US$ 1000/-
  • 3. The evaluation of the PQDs by Project Management Unit (PMU).
  • 4. Submission of the recommendations of PMU to Steering Committee and then to ‘’Board’’ for approval.
  • 5. Issuance of ‘Notification to Proceed’ for submission of Bank Guarantee of US$ 1000/- per MW.
  • 6. Issuance of Letter of Interest (LOI) in favour of Investors to conduct the feasibility study of the project for 15 months.
  • 7. Approval of Feasibility study by the Panel of Experts (POEs).
  • 8. Submission and finalization of tariff with CPPA (Power Purchaser) within 3 months. (there is a three stage tariff i.e. feasibility stage, EPC stage and Commercial Operation Date stage)
  • 9. Issuance of Letter of Support against Performance Guarantee of US$ 5000/- per MW for the achievement of financial close.
  • 10. Negotiation and Finalization of Security Documents (Implementation Agreement and Water Use Agreement with AJK Council / GoAJK and Power Purchase Agreement with CPPA during the validity of LOS.
  • 11. Construction of the project.