Members of the Firm have long-standing experience of work in the power sector, both for the regulator and the IPPs. Scope of services provided include drafting and negotiations of implementation agreements and power purchase agreements for thermal and renewable energy projects, regulatory representations and advice on regulatory compliance.
One of our partners acted as the external counsel for the Alternative Energy Development Board of Pakistan (AEDB). He was instrumental in giving legal form to the first-of-its-kind ‘wind risk’ assumed by the Government of Pakistan in wind energy sector. He worked closely with AEDB, the Water and Power Development Authority, the National Transmission & Despatch Company, consultants and project sponsors for over a year in drafting and developing the Energy Purchase Agreement (EPA) and the Implementation Agreement (IA) for the wind energy sector in Pakistan. The EPA has been reviewed and found bankable, and at least 3 projects of 50MW are at an advanced stage of closure of financing arrangements.
As counsel for AEDB, he negotiated the IA and the EPA among 3 wind IPPs (Zorlu Energy, FFC power limited and Green Power Limited), the Government of Pakistan and the National Transmission and Despatch Company/Central Power Purchase Agency. He also advised extensively on matters relating to leasing and sub-leasing of land for the projects, adaptations to the Grid Code for the renewable energy sector, tariff negotiations with the regulator, and similar matter relating to project facilitation and structuring.
The Firm has recently been signed up as project counsel by China International Water & Electric Corporation for its proposed 3 wind IPP projects of 50 MW each.
The Firm has also acted for the Private Power and Infrastructure Board in assignments entailing negotiations and drafting of Implementation Agreements and Power Purchase Agreements with Independent Power Producers consequent on refinancing and capacity expansion arrangements. The Firm also acted in evaluation of bid documents for a large number of solicited projects. The Firm has advised PPIB in impact assessments on the project documentation consequent upon the likely competitive market structure sought to be implemented by the regulator.
One of our partners acted as a retained counsel for the National Electric Power Regulatory Authority (NEPRA). His scope of engagement included drafting of secondary legislative framework and other legal documentation on regulatory matters and consultative exercises with power sector investors.
The work at NEPRA entailed interface with public and private sector organizations, review of institutional and legal framework applicable to Federal and Provincial Governments in infrastructure development and financing, private sector participation and legal framework for reform, corporatisation and privatization of power sector. Extensive interface occurred with consultants appointed by international development agencies, private investors and public sector organizations.
Some of the major assignments completed at NEPRA are listed below:
● Tariff Standards and Procedure Rules These were drafted and finalised after consultations and workshops with, among others, the World Bank, the International Resource Group, National Economic Research Associates, International Finance Corporation and the financial and legal advisers of the prospective private investors.
● Distribution Licensing Rules These rules set out the framework for the licensing of distribution companies. Extensive consultations and meetings were held with the advisers to the World Bank, the IFC, NERA, IRG, Privatisation Commission and some prospective owners and operators. The licences issued in other jurisdictions were examined in detail.
● Generation Licensing Rules The Generation Licensing Rules were also drafted after extensive consultations with the stake-holders, and aim towards light-handed regulation of power generation activities.
● Licensing Application and Modification Regulations These deal with the preparation, filing and progress of licence or modification applications along with the information and other documents in support and their processing by NEPRA.
● Distribution Licensing Drafted the distribution licence template which was used as a working document for the nine public hearings held all over Pakistan by NEPRA for grant of distribution licences to the distribution companies. Extensive negotiations and discussions with DISCOs over license conditions.
● Generation Licenses, Transmission Licenses Market Design Counsel for NEPRA in relation to the ASI/BPI Consortium studies and reports concluded in mid year 2002 on the regulatory framework for generation and transmission, including template licenses, grid code and market design.
● Review and advice, from a regulatory perspective, to NEPRA on the draft contractual documentation prepared by the PPIB/Government of Pakistan for induction of private sector investment in the thermal power generation sector. These included Power Purchase Agreement, Implementation Agreement, Fuel Supply Agreement and the Gas Supply Agreement.