Water, power ministry refuses to accept ownership

MUSHTAQ GHUMMAN

ISLAMABAD: Ministry of Water and Power on Wednesday refused to accept the ownership of coal power policy meant to establish 10 coal fired plants of 6600 MW at Gaddani (Balochistan) after Senate Standing Committee on Water and Power dubbed the policy as a mega scam and a highway robbery.

“Coal power policy was approved by the ECC and Cabinet. Water and Power Ministry is not responsible for this policy,” said Sohail Akbar Shah, Additional Secretary Ministry of Water and Power. He is also acting Managing Director, Private Power Infrastructure Board (PPIB).

Headed by Senator Zahid Khan, the committee constituted a sub-committee led by Senator Mohsin Khan Leghari, Senator Nawabzada Saifullah Magsi and Senator Nisar Mohmand to review the coal power policy after the committee criticized the government and National Electric Power Regulatory Authority (Nepra) for giving an unprecedented tariff for coal-fired power plants.

Senator Mohsin Leghqari argued that the committee should summon all those officials who “robbed the people”. He also hit out at Nepra - the regulator – for granting an out-of-the-way upfront tariff for coal-fired power plants.

A discussion on coal power plants started when Senator Mohsin Leghari referred to the wide difference between coal plant’s tariff submitted to the committee with documents available on Nepra’s website.

Khawaja Naeem, Member Nepra, confirmed that documents on the website are the latest whereas documents tabled in the committee are related to old tariff determination. He apologized for submitting old documents and promised to take action against those officials who made this mistake.

Senator Leghari also referred to two 600 MW each imported coal fired plants to be established by the Punjab Government in Sahiwal whose tariff is far lower than Gaddani plants’. Nepra officials clarified that the Punjab government has not submitted any tariff petition for coal-fired power plants.

Khawaja Naeem argued that the coal tariff determined by the regulator is most feasible as no investor will turn to Pakistan if tariff is less than what is granted by Nepra. He added that tariff for imported coal is Rs 9.06 per unit for first ten years after which it will be reduced to Rs 7.04 per unit. He further maintained that as the project paid off past loans tariff will come down.

He informed the committee that Pakistan Tahreek-e-Insaf’s MNA (his resignation is yet to be accepted by the Speaker) Asad Umar has filed a review petition against the tariff determined by Nepra.

“We have fixed October 15, 2014 for public hearing. Anybody can participate in the hearing with concrete arguments and if the regulator is satisfied with arguing parties or persons, tariff will be revised,” Khawaja Naeem added.

He further stated the coal plants planned to be established in Gaddani are being synchronized with coal quality explored in Thar which implies that at a later stage Thar coal will be used in power plants.

The Senate’s Standing Committee also constituted a sub-committee to monitor the procurement of imported material for 969 MW Neelum-Jhelum Hydropower Project.

Managing Director, National Transmission and Dispatch Company (NTDC), informed the committee that transmission line will be completed at a cost of Rs 16 billion.

He said NTDC has signed an agreement with United Bank Limited (UBL) for financing of the project. The government of Pakistan has extended a sovereign guarantee.

Senator Zahid Khan stated the committee will take action against the Managing Director after a difference is found in rates and quality of equipment as China makes equipment of every quality.

Chairman Water and Power Development Authority (Wapda) informed the committee that development on the project is in progress as per schedule.

Briefing on Golan Goal Hydropower Project, Chairman Wapda offered that the committee members visit the projects after Eid. An official informed the committee that 67 per cent civil work has been completed.

He also informed the committee that a committee headed by Secretary Science and Technology has finalised its inquiry report regarding unathorised expenditure on Munda Dam and allowed Wapda to get money. However, he said, the approval of PC-II is necessary for raising the required financing for the project.

Replying to a question regarding an impression that floods would not be as damaging to life and property of people if dams are constructed, the Chairman Wapda said storage capacity is not located at relevant places. He added that Wapda enhanced storage capacity of Mangla reservoir by 2 MAF due to which the impact of floods was diminished.

Zahid Khan urged Wapda to prepare a strategy with other concerned departments to take preemptive measures to deal with floods in future.

Nawabzada Saifullah Magsi took up the issue of Naulang Dam, Kachi Canal and theft of Balochistan’s water by Sindh.

Chairman Wapda assured him that he would personally look into the issue of Naulang Dam and Kachi Canal.

Senate committee also taken the Ministry of Water and Power, Pepco and Discos to task for over-billing consumers across Pakistan.

Senator Humayun Khan Mandokhel suggested that the committee members should burn the copies of their bills in the presence of media. Additional Secretary Ministry of Water and Power, Sohail Akbar Shah was of the view that original electricity bills should be destroyed.

Senator Shahi Syed Senator Khalid Parveen also criticized Discos for over-charging consumers.

Khawaja Naeem said that Nepra has directed Discos to replace meter readers with the technology adopted by Peshawar Electric Supply Company (Pesco) as pilot project. This project has been prepared by the Peshawar Engineering University. The committee recommended that all the Discos should start meter-reading by using the technology as pilot project and submit a report after four months.