Govt plans to set up 100MW solar project in GB

ISLAMABAD: The government has announced plans to establish a 100 MW solar power project in Gilgit-Baltistan as part of the Public Sector Development Programme (PSDP), official sources informed Business Recorder.The decision was made during a recent meeting chaired by the minister for Kashmir Affairs and Gilgit-Baltistan. The solar project will be implemented in GB after a feasibility study and needs assessment to ensure maximum benefits for the region’s development. A third-party arrangement will be established to guarantee quality assurance, and an operations and maintenance (O&M) contract will span three years.PM Shehbaz announces immediate supply of 100MW electricity to Gilgit-BaltistanThe Chief Secretary of GB reported that the GB Cabinet had approved the hiring of NESPAK as the government-to-government (G2G) consultant to carry out the feasibility study for the 100 MW solar project. In response to a question from the chair, the Chief Secretary clarified that the 100 MW capacity would be distributed as follows: 40 MW for Gilgit, and 20 MW each for Skardu, Chilas, and Ghanche. He also highlighted that the existing distribution system in GB will be utilized to transport the generated electricity. The financing for the feasibility study is being provided by the GB government, with completion expected by January 31, 2025. Once completed, the updated PC-1 (project document) will be submitted through the Ministry of Kashmir Affairs & Gilgit-Baltistan (M/o KA&GB) to the Public Development Sector Implementation (PDSI) for approval, with tenders to be issued by April 2025.Secretary of the Kashmir Affairs & Gilgit-Baltistan Division noted that an international firm with expertise in solar energy should be selected for a potential joint venture with NESPAK. A representative of the Private Power and Infrastructure Board (PPIB) assured full support to the GB government.The Minister for Kashmir Affairs suggested that the funding for the 100 MW solar project should come from the Prime Minister’s Special Package due to potential fiscal constraints on mainstream PSDP funding. The Minister emphasized that the project would proceed at full capacity but could be completed in phases, with yearly allocations from the PM’s Special Package.The meeting concluded with the decision that the GB government would hire a consultant to complete the feasibility study by February 15, 2025. The updated PC-1, along with the study, will be submitted to PDSI through M/o KA&GB by the end of February 2025. The GB government will then initiate the tendering process through a reputable international firm with experience in solar projects by April 2025.Discussions also covered the construction of the Pakistan Sports Board (PSB) Coaching Centre in Skardu. The Chief of Planning & Monitoring (P&M) in the Ministry of KA&GB shared that the Ministry had requested the PM Office to allocate Rs 200 million from the PM Special Package for GB in the current financial year. Additional Secretary of the Ministry of Inter-Provincial Coordination (M/o IPC) informed the chair that the project’s PC-1, valued at Rs. 764 million, had already been approved by the Departmental Development Working Party (DDWP). The project will feature a gymnasium, a multipurpose hall, indoor game facilities, and a football ground. The original master plan also includes various indoor and outdoor games, with an estimated cost of Rs. 3.7 billion. However, the current PC-1 is focused primarily on indoor games, with the expansion into all game formats to be completed in phases.The Chief Secretary of GB informed the meeting that land for the coaching center had already been provided by the GB government. A proposal was also discussed to transfer project execution to the GB government for faster execution and better post-completion operations and maintenance. The Chief Secretary and Additional Secretary of M/o IPC agreed with this suggestion in principle.The meeting decided that M/o IPC would initiate the tendering process within two months, consulting with the GB government about the possibility of transferring project execution to GB authorities. The M/o KA&GB would also be included in the steering committee to ensure the project’s swift execution.The meeting also discussed a proposal for the allocation of Rs. 300 million from the Export Development Fund (EDF) to upgrade the Lapidary Centers in Gilgit and Skardu. The Ministry of Commerce was urged to expedite the case submitted by the GB government. The GB government had addressed initial concerns raised by the EDF, including its contribution in land, land acquisition for a center of excellence, and consultation with stakeholders.The Chief Secretary of GB is expected to speak with EDF Board members before the meeting. The Executive Director of the EDF suggested that the GB government bring a reputable firm from the gemstone industry to present its case more effectively. Additionally, the GB government should initiate the process of renewing licenses for the Institute of Fashion Design’s affiliated associations.The meeting agreed that M/o KA&GB should be invited to future meetings of the EDF to ensure smooth processing of the GB government’s case. The GB government (Mines & Minerals Department) is to consider the suggestions from EDF for securing approval from the EDF Board.The forum was also briefed on the ongoing development projects in GB. The Additional Chief Secretary (Development) of GB informed that 477 schemes were under execution in the region, all of which had been prioritized for timely completion. The government of GB will provide written responses regarding these prioritized schemes, and a consultative session will be held at MPD&SI to discuss the future of these projects and the issue of the ADP’s “throw forward.”Copyright Business Recorder, 2025