New power plants on the cards

Published September 23, 2005

ISLAMABAD, Sept 22: The federal government on Thursday decided to install about 1300MW power projects on a fast track basis with a one-time exception from the 2002 power policy to avoid looming energy crisis.

The decision was taken at a meeting Prime Minister Shaukat Aziz held on Thursday with representatives of independent power producers, minister and senior officials of water and power ministry, Wapda and the Private Power and Infrastructure Board.

The meeting noted with concern that Pakistan was expected to face a power shortage of about 1300 mega watts next year owing to growing economic needs but additional capacity was not coming on stream in the short term period.

It was, therefore, decided in principle to seek a one-time exemption from the routine rules and procedures required under the power policy to set up new power projects.

A formal case would be shortly submitted to the Economic Coordination Committee of the cabinet for a final decision, a senior government official told this correspondent.

Sources said the prime minister discussed three options with the power sector stakeholders and asked them to give their input in a few days before a formal approval was sought from the ECC.

The prime minister, said the sources, told the IPPs that they were best positioned strategically in terms of existing infrastructure, buildings and resources to quickly expand their generation capacity within the existing units as well as new units.

He asked them to give their specific proposals on the subject and said the government would facilitate them because immediate supply of additional power was a must to overcome shortages.

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