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.

Strike on, strike off

Industrialists irked by power outages, assured by Sindh governor. 

KARACHI: Industrialists have rescinded an appeal for a strike on Wednesday on the back of assurances by Sindh Governor Dr Ishratul Ibad. The governor said that emergency measures would be taken to ensure the supply of electricity to industries and to improve industrial conditions.

Following the governor’s assurances, the Korangi Association of Trade and Industry (KATI) decided not to go through with a strike on Wednesday.

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.

Two weekly holidays for banks and government offices

ISLAMABAD: The Interior Ministry issued a notice on Friday announcing two weekly holidays to take place in government offices.
 
According to the notification, the new office timing for government employees would be from 8:00 am to 4:00 pm.

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.

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.