REALISING that the only sustainable solution to Pakistan’s deep-rooted energy problems lies in large-scale coal-based power generation, Prime Minister Nawaz Sharif has put the 6,600MW power park, imported coal project in Gadani, Balochistan on the fast track.

In less than three years, the Gadani power plants are expected to start supplying badly needed energy to the people.

Contrast this development with the inertia that was the hallmark of the last 10 years where coal-based power from the largest indigenous coal reserves of Thar is concerned.

Neither Pervez Musharraf, nor the PPP government could produce even one ton of coal — much less one megawatt of power — from the much talked about 175 billion tons of Thar coal reserves.

This procrastination was particularly unfortunate for the PPP government whose own leader, Benazir Bhutto, laid the foundation stone in January 1996 of a complex of 5,200MWs of coal-based power plants at Keti Bandar when she was prime minister.

Since all the details and documentation of the Keti Bandar power project were available, it would have started delivering cheap and abundant coal-based power in less than three years, and thus earned the goodwill of the energy-starved people of Pakistan.

In all these years, it has been difficult for many to understand this delay. Was it the ignorance of not knowing how to go about marketing and negotiating a mega international investment project that caused the politicians to go round and round in circles for years?

Or did they not want to pursue the hard work behind indigenous coal-based power generation — and were more fascinated with rental power projects?

After all, two of the principal pillars of the power structure of the last five years, were not even present at the foundation stone-laying ceremony of the Keti Bandar project because neither occupied any important official position in Benazir Bhutto’s government at that time.

The merits of the Keti Bandar project included the quick start of the first unit of 1,300MWs from imported coal and the remaining 3,900MWs — and all subsequent additions — from Thar coal.

To ensure this, investors deposited $5 million in Sindh government accounts to pay for technical studies of Thar coal so that turbines for future power generation could be designed according to specifications.

To reduce infrastructure costs and environmental hazards, coal was to be mined, cleared of impurities and powdered in the desert areas and transported via an especially laid railway line to Keti Bandar where a series of power plants were to be located.

All costs of infrastructure — including the railway line, dredging of the deep-sea port and jetty construction at Keti Bandar for berthing ships of up to 200,000 dwt (deadweight tonnage) — were to be financed by investors.

Despite all these safeguards, the final cost of the power generated from the Keti Bandar project would be a lowly 4.6 cents/kh. Pakistan had never seen a more favourable investment project negotiated in its history.

Nevertheless, this feasible and economically viable design of the Keti Bandar project was dropped and a wild goose chase started in pursuit of an expensive, non-feasible design which would take many more years, cost many more billions and produce very expensive electricity for consumers.

Since the extra cost for this was coming out of the taxpayer’s pocket, there was a temptation to take the longer and more expensive route. More so, since all extra costs of inefficiencies and tertiary additions would be passed on to consumers in the shape of expensive electricity bills.

Now Gadani has trumped Keti Bandar, with the current government’s plans for a 6,600MW coal-based power park. As this would also require dredging for large cargo vessels, a deep sea port will emerge as a by-product.

As some loose ends are tied up, Gadani has the potential to emerge as the centre of coal-based power in Pakistan and become the toast of the investor community.

Because of the wild goose chase of the last many years, Thar coal power generation has found itself facing several problems. If the demand and supply gap in power generation is met by the Gadani power project, investor interest in other power projects — including Thar coal — will subside for some years.

The PPP never had as much opportunity to exercise control over all levers of decision-making at the federal and provincial levels as it did during the last five years.

If the Keti Bandar coal-based power project could not even take off — much less be completed — during the last five years, despite a favourable environment, what are the chances that it will actually see the light of day in the near future, unless radical reforms are undertaken?

Not delivering on one of the most important public welfare projects, whose foundation stone was laid by the PPP’s own leader, and which would have generated immense goodwill from those facing power outages across the country, was a big letdown in the eyes of the people.

This kind of attitude caused the largest federal party in the country to have hardly any showing in three provinces, after five years of federal and provincial power.

In the changing dynamics of Pakistan, the politics of emotion is giving way to the politics of performance. If Gadani becomes the hub of coal-based power in the country, let us all celebrate for the good of Balochistan and Pakistan. And if the Keti Bandar power project did not take off even in the face of propitious circumstances at the time, no one should look elsewhere for excuses.

The writer, as head of the Board of Investment, marketed and negotiated agreements leading to the inauguration of the Keti Bandar coal-based power project in 1996.

smshah@alum.mit.edu