‘Power sector’ — II

What is really our objective in the power sector? Make a lot of money by setting up most expensive power plants and then claim impossible efficiencies to show lower tariff, which is really much higher, resulting in the all-pervading circular debt, presently reaching Rs 450 billion and rising.

Who will ultimately pay for the high financing costs (due to exorbitant capital costs of power plant) and very high fuel costs (due to very low actual efficiency of the power plants)?

Politically influenced announcements will obviously not cover the above real costs so we will find much-needed funds for education and health being quietly diverted to pay for high power costs! Who will be found responsible for the actual very high power tariff? All said and done, the high power costs will be paid by the country and all sorts of excuses will be issued for lack of basic requirements of the masses.

However, do we thank KfW for making us aware of our predicament? If they had warned in time, before actual execution of most expensive power plants planned to operate at low efficiencies, then perhaps, some action could be taken before actual power plant orders but at this time, when we have lost it all, is this announcement also “politically influenced”?

If KfW really cared, they should have taken action against a German company for scuttling a 100MW power-desal cogen power plant in Karachi more than a decade back after the country had invested more than US$ 110 million!

This power plant, originally designed by us, for most efficient power and desalination plant was hijacked by this German company and has the unique distinction of an expensive power plant that failed to operate from day one!

It is good that KfW has taken Pakistan’s power sector issues seriously. Can they go back a decade and hold the German company responsible for Pakistan’s great loss? Can we have the most efficient cogen power plant in Karachi as originally designed which could show the way to have economical seawater desalination plant, an essential requirement for Karachi’s basic water needs for the very existence if, God forbid, something happens to Indus source of water?

KARACHI AINUL ABEDIN