Crucial talks with IMF, WB put off for three days

The talks have been suspended so that the economic managers could seek President Zardari's intervention in taking difficult economic decisions.—Reuters photo

ISLAMABAD: The crucial talks between the government and twin missions of the International Monetary Fund and World Bank remained suspended for a day on Tuesday and then put off for another two days to seek top level political intervention in difficult economic decisions.

Informed sources told Dawn that the two sides were originally scheduled to conclude on Tuesday, or latest by Wednesday, their negotiations on macroeconomic framework and on a strategy for economic stabilisation and containing the rising fiscal deficit.

Industries to shutdown in protest against power cuts

KARACHI: The representatives of the six industrial areas of Karachi have decided to observe a shutdown on Wednesday if the Karachi Electric Supply Company (KESC) fails to restore uninterrupted supply by Tuesday.

The decision was taken at a joint meeting of the associations of the six industrial zones of Karachi, which took place at Korangi Association of Trade & Industry (KATI) on Saturday.

Chairmen of SITE Association of Industry, North Karachi Association of Trade & Industry, Federal B. Area Association of Trade & Industry, Landhi Association of Trade & Industry, Korangi Association of Trade & Industry, and SITE Super Highway Association of Trade & Industry represented their associations at the meeting besides others.

Power, petroleum ministries to be merged

A employee installs a new electricity tower in Karachi. -AFP File Photo

ISLAMABAD: With the oil import bill estimated to increase by about 300 per cent to $38 billion by 2015, the government has concurred with the Friends of Democratic Pakistan (FoDP) to merge the ministries of power and petroleum and their sectoral regulators for an integrated solution to the energy crisis.
The government has also agreed to substantially increase power tariff for domestic consumers using over 300 units per month to bring it on a par with the average tariff for industrial and commercial consumers.

Govt promises to raise power tariff by 6pc

ISLAMABAD: A crucial meeting of the International Monetary Fund’s (IMF) executive board, which has to approve the 5th tranche of $1.2 billion for Pakistan under its standby arrangement programme, has been delayed till mid-May because of the insertion of a new paragraph on the power sector, according to the letter of intent made available to The News.

Earlier, the meeting was set for May 3, but now it would take place on May 15 in Washington. This meeting has been postponed in April also because of Pakistan’s failure to introduce a bill on the Value-Added Tax (VAT) before the Parliament on time.

US to help refurbish power plants

LAHORE: Help for Pakistan’s energy sector will be a top priority in plans for direct US investment in the country under the Kerry-Lugar Bill, Administrator of the US Agency for International Development (USAID), Dr Rajiv Shah, said here on Wednesday.

“The US will help refurbish three thermal and one hydel power plant that will add some 4,500MW to the national grid,” Mr Shah said while talking to this correspondent at Lahore airport before leaving for Islamabad. USAID’s Pakistan Mission Director Robert Wilson was also present.

PSMA demands 11 cents for captive power

 ISLAMABAD: The Pakistan Sugar Mills Association (PSMA) has rejected the 9.28 cents per kWh offer by National Electric Power Regulatory Authority (Nepra) to produce electricity for the national grid.
The PSMA members in a meeting held here on Wednesday observed that the minimum tariff for the captive power produced by the sugar mills should be 11 cents per kWh.

WB, ADB differ over quantum of power tariff hike

ISLAMABAD: The World Bank and the Asian Development Bank differ on the quantum of the planned increase in power tariff, a senior official of the Ministry of Finance told the News.

If the ADB’s view is accepted, the government will have to increase power tariff by 20 per cent. The government will, however, have to increase power tariff by 10 per cent if the WB’s input is taken into consideration.

Plans afoot to generate 3,000MW in next five years

KARACHI: The government is planning to tap sugar industry resources and to generate around 3,000 megawatts during the next five years to meet power shortage in the country. This will help in reducing the import bill of furnace oil by $980 million.

ìGeneration of cheaper electricity through renewable resources and use of bagasse in the sugar industry will be encouraged,î an official in the National Electric Power Regulatory Authority (Nepra) said, adding that Nepra has taken a landmark decision to provide incentives to those sugar mills who have shown their readiness to generate electricity for the national grid by the end of March 2014.

Govt likely to continue hiring power projects

 











ISLAMABAD: Discouraged by a lack of interest in the private sector, the government is considering to add about 8,800MW of power generation capacity in the public sector by 2015 and continue to hire power projects to meet electricity requirement.

Public sector investment in power sector capacity addition was prohibited during the Pervez Musharraf-Shaukat Aziz administration and that is one of the main causes of the current electricity shortfall, sometimes exceeding 5,500MW. Emergency efforts to install rental power projects and fast track IPPs have only added to the rising electricity cost and that too without sufficient supplies.

Zardari urges WB to finance Pakistan’s energy projects

ISLAMABAD: President Asif Ali Zardari on Thursday called upon the international donor agencies to support Pakistan for strengthening of country’s economy and help in overcoming severe energy and water crisis.

Talking to Vice President World Bank (WB) Isabel Guerrero at Aiwan-e-Sadr, the President said the government had taken difficult and unpopular decisions for economic recovery.

Japan gives $260m loan for power sector

ISLAMABAD: Japan has extended a soft loan of $260 million (23.3 billion yen) to Pakistan for the National Transmission Lines and Grid Stations Strengthening Project, which will cost Rs29.339 billion.
This is the first Japanese loan under the Official Development Assistance (ODA) based on the Pakistan Donors’ Conference hosted by Japanese government in April 2009 where a maximum of $1 billion in aid was pledged over a period of next two years.

Nepra allows Rs1.02 hike in power tariff

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has allowed Rs1.02 per unit fuel cost adjustment in the consumer tariff of Wapda’s eight distribution companies for the month of February this year and the extra charge will be added to consumers’ bills for next month.
Nepra approved the increase, but rejected another 43 paisa per unit increase sought by the distribution companies on the grounds that the companies concealed relevant information and sought to charge ‘illegitimate’ mark-up on delayed payments to independent power producers (IPPs).

Govt, global donars to discuss power tariff hike on Monday

If IMF tranche not okayed by April 12, it could be delayed further

ISLAMABAD: Representatives of multilateral creditors and Pakistani authorities are scheduled to meet on Monday, Mar 29, to decide whether to increase electricity tariff by six per cent from April 1, or defer it to avoid popular backlash, a senior official of the finance ministry said on Saturday.

The meeting had been called after an unexpected delay in approval of the IMF’s fifth tranche worth $1.2 billion for Pakistan, the official said.

Nepra criticises power firm for exploiting consumers

ISLAMABAD: The National Electric Power Regulatory Authority (Nepra) has taken strong notice of secretly passing on to consumers the mark-up paid to fuel suppliers by power companies and said it will not allow the penalizing of poor consumers for power sector’s inefficiencies or political compulsions.

“It is criminal negligence, which cannot be overlooked,” remarked Nepra’s member from NWFP Shaukat Ali Kundi while hearing on Wednesday a request for the Central Power Purchase Agency (CPPA) – a corporate entity under the Pakistan Electric Power Company (Pepco) – to enhance electricity tariff by Rs1.44 per unit on account of fuel adjustment with effect from April 1, 2010.

UPS prices surge amid heavy demand

KARACHI: Battery makers are fully cashing in on the situation by pushing up the rates in the wake of surging demand of uninterrupted power supply (UPS) as the load-shedding has brought miseries to the people ahead of peak summer season.
Increasing trend in sales of cars and heavy vehicles has also pushed up the demand for batteries. In 2008, consumers had witnessed worst black marketing of the batteries as the demand outstripped supply.

$141mn generators imported in Feb

KARACHI: Smelling higher demand, traders imported 88 per cent more power generating machinery worth $141 million in February 2010 as compared to $75 million in January 2010.
Imports in February 2010 were higher by 17 per cent as compared to February 2009.

According to figures released by the Federal Bureau of Statistics (FBS), import of generators in July-February 2009-2010 fell by eight per cent to $1.1 billion as compared to one billion dollars in the same period in the last fiscal year.

Industrialists warn of more protests if power cuts continue

Saturday, January 09, 2010
By our correspondent

LAHORE: Industrialists of the Lahore Township Industrial Area (LTIA) on Friday warned of more protests if unannounced load-shedding was not stopped immediately.

They appealed to Prime Minister Yousuf Raza Gilani and Punjab Chief Minister Mian Shahbaz Sharif to look into the matter which was hitting the entire industrial sector hard.

ECC may approve security agreements for power projects

Sunday, January 03, 2010
By Aftab Maken

ISLAMABAD: The Economic Coordination Committee (ECC) of the cabinet will approve standardised security agreements for hydropower projects under the policy for power generation projects 2002, says agenda of the meeting made available to The News on Saturday.

The meeting, which is scheduled to be held on January 5 under the chairmanship of Finance Minister Shaukat Tarin, will take up an 11-point agenda, submitted by various economic ministries.

KESC, Oracle to set up Thar’s first coal power plant

KARACHI: The Karachi Electric Supply Company (KESC) has signed a Memorandum of Understanding (MoU) with Oracle Coalfields, a company incorporated in England and Wales and primarily engaged in coal drilling, exploration, mining and production, to set up a major coal-fired power plant at Thar Coalfields in Sindh.

An announcement to this effect was made in a statement issued by the KESC.