Pak to invest $30 bn for power generation

Karachi: Minister for Water and Power Pervaiz Ashraf announced that the government ($10 billion), in collaboration with private sector ($20 billion), would invest $30 billion by the end of 2015 to mitigate the growing energy requirements due to the liberal policy of the PPP-led government.

The minister blamed the previous government both for causing energy crisis and giving of LOIs to incompetent companies, 'those who damaged the country's wealth and created hurdle in energy generation'. He added that soon, in meeting of Alternative Energy Development Board (AEDB), all such LOIs would be cancelled.

About giving subsidies on energy, he claimed that the previous government was giving Rs 77 billion subsidy, but after recent withdrawal of increase in power tariff this subsidy had increased to Rs 177 billion.

Regarding power generation from Thar coal, the minister said that the project would start power generation in next five years. He said that the entire Saarc region was facing different challenges as it was a region of 1/3 population of the world.

He said that country was facing shortage of some 4000 mw, which is 1/3 of total energy consumption that compelled the government to do eight-hour load shedding. 'The government will meet this shortage of energy by the end of 2009, and government had done agreements for 1500 MW on war footing,' he added.

The minister said that to meet the rest of energy requirements work on Naleem-Jhehlum hydro power project has already been started, while power generation would be initiated soon from Kuholo hydro power project.

He said that government is mulling to import energy from Central Asian states, and added that a plan of 1100 mw was under consideration of government to import energy from Iran to fulfil Balochistan energy needs. He said that a Turkish company would start work for generating 100 MW energy through windmill at Jhimpir.

About Karachi energy situation he expressed hope that new Karachi Electric Supply Company (KESC) administration would fulfil the energy need of the industrial hub of Pakistan with better performance. He said the government is drawing plan to provide 6000-7000 MW to Karachi by the end of 2015.

On water shortage made by India, he said that due to first filling of Baglihar dam, the country had faced severe shortage of 0.2million acre-feet (MAF) water shortage, and a claim in this regard had been filed in International Court. To overcome the water shortage, the minister said that government has already approved many dam projects.

Commenting over nation's fate Ashraf said that Pakistanis are not poor, but poorly managed for past 60 years. These crises were due to lack of policy, planning failure and intense negligence.

Regarding consumption of energy in South Asia, the President of Saarc Chambers of Commerce and Industry, Tariq Sayeed, said that as compared to last two decades, when the energy consumption was 5.8 percent against low energy production of 2.3 percent, the demand for energy was growing at a rate of 10 percent annually, which has almost doubled in last decades. Chief Executive Officer KESC Navid Ismail, Vice President FPCCI Zubair Tufail and other also spoke on the occasion.