PESHAWAR: The Khyber Pakhtunkhwa government on Thursday approved Rs10 billion for the provincial Oil and Gas Development Company Limited (KPOGDCL) with a comprehensive action plan for accelerating work on exploration of oil and gas in the province.

It also decided to carry out hydro and solar power projects to end prolonged loadshedding saying Saudi and American companies plan $2 billion investment in the hydel power generation sector.

The decisions were taken during a meeting of power and energy department here at the Chief Minister’s Secretariat here with Chief Minister Pervez Khattak in the chair.

Those attended the meeting included energy and power minister Atif Khan, secretary Sahibzada Saeed Ahmad, recently established Pakhtunkhwa Energy Development Organisation chief executive officer Bahadar Shah, Khyber Pakhtunkhwa Oil and Gas Company Limited CEO Raziuddin, chief planning officer Zainullah Shah, principal secretary to the chief minister Ishfaq Khan and others, said a handout issued here.

Says Saudi, US firms intend to invest $2bn in hydel power sector

According to the handout, the government also decided to buy 2.5 percent shares in Pezu and Partai oil and gas fields initially whose rate will be enhanced after better production.

Also, a decision was made to announce attractive incentives for large-scale investment in hydel power generation and alternate energy resources at national and international levels.

“Talks with Saudi and American companies, which intend to invest $2 billion in hydel power generation sector, have been initiated. Similarly, the hiring of consultancy firm to review matters relating to possible handing over of the control of Wapda/Pesco to the province by the federal government has started work on feasibility report.”

The handout also said a plan was being pursued to attract large-scale investment in hydro power and other alternative means of energy to the tune of Rs12 trillion until 2025.

During the meeting, the chief minister directed the PEDO and KPOGDCL bosses to ensure the best use of allocated resources to arrest energy crisis, initiate hydropower projects and take emergency measures for their completion within the stipulated time.

He said such measures would not only help overcome energy shortage in the province but also generate the maximum economic and employment opportunities to put the province on the track of progress and prosperity.

Khattak said besides hydel resources, the Almighty Allah had also blessed the province with precious oil, gas, coal and solar resources.

“The maximum exploration of natural resources for the development of the province is among the top most priorities of the present PTI-led provincial government. My government is burning the midnight oil to achieve the targets for the purpose,” he said.

The chief minister deplored that the previous governments paid no attention for better use of precious resources and thus, plunging the province into severe energy crisis.

He said in the first phase of the energy plan, the provincial government would establish 356 small hydel power stations at village and town levels in the province at a cost of Rs12 billion and that Rs6.7 billion had already been allocated for it.

Khattak said small community hydel power stations would be established on streams, canals and rivers near villages, while oil, gas and solar resources would also be used for generating energy to get rid of the excessive loadshedding.

He said in the next phase, the huge hydel and thermal potentials would be used to establish big power stations for industrial purpose.

The chief minister said the energy produced by the projects on big scale would be supplied to old or newly-established industrial estates at the district and regional levels for the promotion of cottage and large industries, generate employment opportunities and boost economic activities in the province.

The plan was unveiled by PTI chairman Imran Khan by laying foundation stone of 56KW Sakhra Lalkahoo micro hydel power station in Matta tehsil of Swat district on August 7, 2014.

The meeting was told that the chief minister would lay foundation stone of 12 megawatts micro hydel power station in Karora area of Shangla, 10 megawatts micro hydel power station in Jabori area of Mansehra and 40 megawatts micro hydel power station in Koto area of Lower Dir.

The chief minister took notice of delay in approval of PC-1 of 69 megawatts Lawi Chitral and 84 megawatts Matiltan hydel power projects.

He said his government had allocated Rs46 billion for the two important energy schemes but delay in the PC-I preparation would not only result in the lapse of funds but also indicated the non-cooperation of the federal government to the province in overcoming the deepening energy crisis.

Published in Dawn, October 17th, 2014