ISLAMABAD: It took more than six years to complete the paperwork that began in April 2017 to merge the Alternative Energy Development Board (AEDB) with the Private Power and Infrastructure Board (PPIB) through an announcement by the later after coming into force of PPIB (Amendment) Act 2023.
The merger has been made “to facilitate development and generation of alternative renewable energy (ARE) to achieve sustainable economic growth with the transfer of technology for the development of an indigenous technological base through a diversified energy generation”.
“We are pleased to announce that….the AEDB has merged with the PPIB, consequently, the AEDB Act 2010 (Act XIV of 2010) stands repealed/dissolved henceforth”, said an order issued by the managing director of PPIB.
Under the amended PPIB law, all the responsibilities, functions, powers, staff, assets and finances of the AEDB stand transferred to and merged with the PPIB which will immediately announce a voluntary separation scheme (VSS) to all officers, other employees and staff of AEDB to opt for VSS within three months if they so desire. Those not taking VSS would be deemed to have been appointed by the PPIB.
AEDB staff to be offered voluntary separation scheme
All debts and obligations, contracts, guarantees, suits, arbitrations, proceedings and rights, etc of the dissolved AEDB would also stand transferred to the PPIB. Through the amended law, the board of directors of the PPIB has been downgraded and would now be led by the secretary of power (who was earlier one of the members of the board) instead of the power minister.
Likewise, the board of directors of the PPIB, instead of the ‘federal government’ would now have the power to appoint its managing director. The board would also comprise secretaries or their nominees from the ministries of finance, climate change, petroleum and planning besides chairmen of FBR and Wapda, MD PPIB and chief secretaries of four provinces, AJK and GB.
The government claimed that the AEDB was essentially tasked with similar functions as that of PPIBs except that its scope was limited to the development of ARE projects, resulting in duplication of functions, resources and efforts. The existence of AEDB as a separate administrative entity was considered contrary to the spirit of “one window operation” and “ease of doing business” as investors have to deal with two different entities, having similar mandates and scopes of work.
The erstwhile Ministry of Water and Power started the legal process for the merger of two entities under a foreign-funded scheme in the first quarter of 2017. Interestingly, the Board of Investment operating under the Prime Minister’s Secretariat is also working as a “one-window operation” for investors.
Also, after the merger of the AEDB with PPIB, the PPIB would now “establish one or more organisations as it may consider necessary” for carrying out its functions for the promotion and development of transmission, distribution and generation of conventional and alternative and renewable energy and related infrastructure or certification of vendors and service providers.
On top of that, the new PPIB would also set up an Institute of Energy Technologies for the development of human resources to carry out functions of commercial application of ARE, provide economic and policy counselling and ARE research.
The PPIB was established in 1994 as a “one-window facilitator” for private-sector investments in the power sector, particularly those relating to hydropower, thermal, coal and gas-based plants, through an executive order. It was given legal cover in 2012 through an act of parliament. Later, it was entrusted with the implementation of a transmission line project.
Likewise, the AEDB was set up in 2003 for the promotion of alternative and renewable sources of energy, like solar, wind and bagasse, and was given legal cover through an act of parliament in 2010. It was tasked by the government to increase the share of renewables in the total electricity supply to at least 5pc by 2030.
Published in Dawn, July 18th, 2023
