Big hydropower contract rules being relaxed

The country can produce up to 40,000MW of electricity through simple run-of-the-river projects at about 8 cents per unit compared with 15-18 cents per unit of thermal power. – File photo

ISLAMABAD: The government has decided in principle to relax conditions for awarding contracts to international companies for big hydropower projects, by doing away with the international competitive bidding (ICB) required under the existing procurement rules.

A senior government official told Dawn that from investors’ point of view the procedure for taking up mega projects for investment on build, own, operate and transfer (BOOT) basis involved a lot of time and money for evaluating data relating to a project, site visits and formation of joint venture companies. For this reason, renowned private investors are hardly interested in taking part in the ICB.

Thar Coal: A gateway to energy for Pakistan – I

Coal trucks drive along a road leading to a mine. – Reuters (File Photo)

 

Pakistan is marred by an energy crisis that has no precedent in its 63-year history. Although, blessed by natural resources, the country has failed to utilise its reserves for the enhancement of its industry and economy. Since the past three years, due to improper planning, lack of long-term strategies, and an increasing circular debt, our energy generation capacity has decreased to dangerously low levels, while the demand is only increasing. As a result, over a billion rupees are lost each year in the frequent power outages (load-shedding) that occur every day throughout the country.

Power tariff to be raised by 2pc a month

A joint delegation of IMF, World Bank and ADB called on Federal Minister for Water & Power Raja Pervez Ashraf in Islamabad.—Online

 

ISLAMABAD: The International Monetary Fund (IMF) has criticised slow progress on taxation and power sector reforms and sought in two days a clear plan from the government about controlling the increasing fiscal deficit.

In the first round of policy discussions, a review mission of the IMF and World Bank headed by Adnan Mazarei held meetings on Monday with Finance Minister Dr Abdul Hafeez Shaikh on tax reforms and the macroeconomic situation and with Minister for Water and Power Raja Pervez Ashraf on power sector reforms.

Power shortage will be reduced in a month: Ashraf

ISLAMABAD: Federal Minister for Water and Power Raja Pervez Ashraf once again claimed on Sunday that the prevalent power crisis in the country will be reduced within a month as water inflow in dams will increase and a few of IPPs will start operating. 


Ashraf was talking to the media during his visit to National Power Control Centre. He blamed less rains for the low generation of electricity and the early heat wave for the increased demand.

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).

SECP allows KESC to issue right shares

ISLAMABAD: The Securities and Exchange Commission of Pakistan (SECP) on Friday allowed the Karachi Electric Supply Company to issue 14.5 per cent right shares to its existing shareholders.

An SECP official said that the commission had also directed the two majority shareholders Abraaj and the government of Pakistan to provide an undertaking on their part that the right shares would be subscribed by them and the unsubscribed would also be subscribed by the two partners.