MUZAFFARABAD, Dec 10: Azad Jammu and Kashmir Chamber of Commerce and Industry (AJKCCI) has urged the federal government to desist from proposed signing of memoranda of understanding (MoU) with the Chinese government regarding hydel power generation projects in the larger national interests.

The Mirpur-based chamber pointed out on Monday that the private sector companies had spent millions of rupees on preparation of feasibility reports of the projects in Azad Kashmir and Pakistan and were deeply concerned over the move.

According to a press release, the AJKCCI at an emergent meeting, presided over by its president Zulfiqar Abbasi, feared that the proposed move would deal a serious blow not only to the investors’ confidence but also to the government’s efforts to attract private sector investment.

The meeting was informed that various private sector investment companies were holding the valid Letters of Support (LoS), issued to them by the Wapda, federal ministry of water and power and the cabinet’s economic co-ordination committee till December 2002. The Wapda’s decision to sign MoU with public sector foreign firms was tantamount to nationalising these projects and amounted to sheer violation and denial of government policies for the progress and prosperity of the private sector, the AJKCCI meeting said.

The meeting believed that this decision would also adversely affect the government’s plan to provide electricity to the consumers at cheaper rates. It pointed out that the private sector companies had already given the tariff of 3.6 cents to the government, but Wapda seemed to be adamant to launch the proposed projects in public sector by ignoring the private sector’s offer.

It alleged that the inordinate delay in completion of the under construction Ghazi Brotha hydel power project was the result of Wapda’s uncalled for and unwise policies. In the wake of increase in electricity rates by Wapda, its decision to establish more power projects in public sector is beyond comprehension, the chamber said.

The decision would sink the initial investment to the tune of millions of rupees made by the private sector companies on preparation of feasibility and consequently discourage them from making any further investment in Pakistan, it added.

The chamber asked president Pervez Musharraf and federal finance minister Shaukat Aziz to take stock of the situation and direct Wapda to immediately finalize power purchase agreements with private companies pending since long, so that the latter could not feel lack of security, unrest and harassment.