LAHORE, Aug 21: Wapda chairman Tariq Hameed said on Saturday the authority has presented its report to the federal government on the feasibility of Kalabagh dam , which could be initiated at once while that of Bhasha dam could take at least three years to commence.

The Wapda chief stated this while talking to newsmen at the Lahore Chamber of Commerce and Industry (LCCI) here.

"However, it is the Parliamentary Committee on Water Resources headed by Senator Nisar Memon which is yet to give its report comprising its findings on the final option about either dam and then the president would decide about launching any one of the two projects."

He said the country could be facing the shortage of electricity to the tune of 700 MW to 800 MW by 2007. "Therefore, it is imperative that work on at least one big water reservoir should immediately be started. Wapda, like the business community, would prefer Kalabagh dam," he added.

Mr Hameed said the authority would feel relief from the IPPs costly power production burden, as it would come down by 2007-08.

He said use of local coal was an alternative to produce low-cost electricity. But production from Wapda's total six projects would not exceed 600 MW. Thermal power would be costly, thus through hydel project, power could be produced at low rates, he observed.

He said Wapda had asked the provinces to go for small hydel units with the involvement of private sector, adding that the Punjab government was proceeding in this regard.

Lauding the business community for its contribution and negligible power pilferage, he said the authority would consider a special package and incentives for the small and medium enterprises, particularly cottage industry, besides facilitating them to give power connection on priority basis. He also assured them of all help and remove their grievances by improving customer services.

Earlier, speaking to the members of LCCI, he underlined the need to start big projects.

He said the country's energy consumption rose by six per cent last year as compared to 4.2 per cent in the preceding year.

He said hydel projects being executed at present were very small, with production capacity not exceeding 50 MW, which could not meet the country's energy requirements which were increasing by 600 MW to 700 MW per annum.

Mr Hameed said Wapda was also focusing on thermal energy, especially by using Thar coal. A Chinese company was already working on a thermal power project which would start generating 600 MW by 2008.

He said a German company was also working to set up a thermal project to produce 600 MW by using Thar coal.

The Wapda chief said for setting up more thermal power projects international tenders would be called, adding that "bidding in this regard would be transparent."

Categorically denying repetition of IPP episode, he said contracts would be given through completely transparent process.

Mr Hameed said another area of focus was speedy completion of transmission lines to ensure that power could be transmitted to low energy areas from high energy areas.

In the past, this sector was ignored due to which some times such urban centres where most of the industry was established faced shortage of electricity despite the fact that it was surplus in some other areas, he added.

He said work was in progress apace to complete by March next big transmission lines, including Dera Ismail Khan to Bannu, Sindh to Punjab and Ghazi Barotha to Islamabad which would help transmit power from high energy areas to low energy areas.

Admitting that on average electricity in Pakistan was 20 per cent costlier than other countries of the region, he said Wapda has to pay subsidy of Rs22 billion and if government helped it in this regard, it could provide relief to industrial sector.

He said Wapda was providing power to industries at the rate of Rs3.68 to Rs3.78 per unit while its per unit cost of production was Rs4.

He said last year 7,500 villages were provided electricity. The reason for electrification of large number of villages was that elected representatives got development funds and they preferred to spend the amount on electrification of villages of their areas.

Regarding performance of different electricity companies, he said FESCO was the best with minimum 14 per cent power losses while power losses of some companies were as high as 35 per cent.

Earlier, LCCI president Mian Anjum Nisar, in his address of welcome, said in view of impending challenges of WTO, SAFTA and competition from neighbouring countries, power tariff should be reduced.

LCCI president Mian Anjum Nisar, senior vice-president Mian Misbahur Rehman, vice-president Shahzad Ali Malik, former presidents and executive committee members also present on the occasion.-PPI/APP