Minister rejects corruption allegations
MUSHTAQ GHUMMAN
ISLAMABAD: Minister for Water and Power, Khawaja Asif on Friday dispelled the impression that the incumbent government is involved in corruption and kickbacks in power projects as is being portrayed, saying whosoever has proof should approach the court. He was replying to questions raised during a press conference convened to apprise media on the current power situation and the new power projects signed during the recent visits of the Chinese President.
The Minister who himself fought cases against the PP led coalition government’s flagship projects including Rental Power Plants (RPPs) and Nandipur Power Project, gave a clean chit to the top officials of different organisations including Alternative Energy Development Board (AEDB ) and Private Power Infrastructure Board (PPIB) falling under the administrative control of Water and Power Ministry over allegations of kickbacks and commissions. He said if there is proof against anyone dealing with energy projects then they should take it to the courts.
“I had documentary proof against three rental power projects and went to court and won the cases. If you have proof approach the court,” Asif advised the journalist who sought a response on corruption and kickback charges.
On anecdotal allegations of corruption by the private sector against officials of organisations dealing with power sector projects who reportedly refuse to initiate work on the file prior to receiving kickbacks, the Minister asked for names of officials. However, when the journalist mentioned the name of CEO AEDB Asjad Imtiaz Ali, the Minister immediately changed his stance and asked the journalist to bring documentary evidence against him.
“Don’t do kite flying. As cameras are available in the press conference so you are trying to take advantage of those cameras,” he added.
He said that Pakistan had signed agreements with China to implement 8320 MW generation capacity power projects which would help overcome load shedding by end of 2017. “China will bring $20 billion investment to implement these power projects,” he said, adding that these projects would be launched in all the provinces, AJK and Balochistan. He said that no province had been ignored in setting up power projects.
“The Chinese investment is a good signal of investment sentiment for foreign investors,” he said adding that these projects would be completed from 2018 to 2020.
He said that CASA-1000 MW power project was being signed in Istanbul and a final tariff would be determined by Nepra. “The first flow of electricity would start in 2019,” he added. He said that the government had shifted its priority away from Gadani power project due to a lack of infrastructure and also due to the focus on implementation of power projects scheduled for completion by 2018. He maintained that the recovery of power bills had increased by 3.2 per cent and power distribution and transmission losses had also been reduced by 1 per cent compared to the same period last year. The circular debt is also Rs 70 billion less than that of last year. He said that power prices had come down by Rs 4.42 per unit due to dip in global oil prices and would rise if oil prices soared. However, the Minister acknowledged that the government has failed to recover receivables from provinces.
He said that the government wanted to bring tariff to a single digit to end the issue of circular debt and subsidy.
He admitted that the government is not operating power plants at optimum level despite a dip in oil prices. “We will try to operate power plants at optimum level in summer season,” he said adding that the government had provided uninterrupted power supply to industry for the last four months. He said that power production stood at 16500 MW last year and government would achieve it in the current summer season.
He also added that there is no issue of oil shortage and all the IPPs are being provided furnace oil as per requirements.
“Uch power plant has been shut down due to issue of gas field due to which 900 MW electricity is out of the system which will be back in a couple of days,” he added.
In response to a question that IPPs were supplied imported LNG only for two days and later it was diverted to fertilizer sector, the Minister replied that LNG is not being supplied to IPPs due to issues in a payment mechanism.
“A payment mechanism of LNG to be supplied to IPPs is at an advanced stage and it would be resolved soon. We take advantage of oil supply from Pakistan State Oil (PSO) but we do not want to take risk in LNG supply which requires immediate payment,” he said, adding that LNG would be supplied to Kapco and four IPPs near Lahore. He said that 3600 MW power through LNG based power plants would be injected into the national grid in the next two years.
Responding to a question, he said that National Electric Power Regulatory Authority (Nepra) had given tariff to two rental power plants on ‘take and pay’ basis which is far less than the previous tariff. These plants got clearance from the NAB and were in compliance with a Supreme Court decision. He said that talks with KPK on net hydel profit were under way and the issue would be resolved soon. He also maintained that the privatization of K Electric had not been in favour of government and issues regarding 600 MW power supply would be resolved in the first week of May.
Answering another question, he said load shedding will be eliminated by the end of 2017.
The Minister argued that maximum generation level of 16,500 MW is expected to be achieved like in the year past, adding that the government has to keep in mind the absorption level of distribution system. He said 1500 MW electricity has been added to the system as compared to last year, adding that load shedding in industry is zero for the last four months.
Replying to another question, Khawaja Asif said that there should be a balance between water and electricity requirements as presently water is being released only on indents of provinces. This mechanism should be revised.
