KARACHI, Oct 1: Karachi may get some relief in power supply in the spring, but soon after that will relapse into a greater crisis as massive construction projects are coming up and business activities are also gradually picking up, with no new power generation projects in the pipeline.

The relief in power supply is expected in the spring after Hubco is linked up with the KESC supply system, which will augment power supply by about 1,000 to 1,500 megawatts. But after the Hubco-KESC link-up, Wapda will stop power supply to the city, which will cut electricity supply by about 500 mw.

“By the way who was that wise man who decided to link up Hubco with Wapda from where excess power was being transmitted to Karachi at a much higher cost and after sustaining transmission losses?” a senior business leader asked.

The news of power shortage in Karachi is not surprising because as far back as 1994 there had been predictions of acute power shortages in the city and also in the country. The Benazir government took the issue on war footing and approved many projects in 1995 and 1996, which later became victims of political vendetta by the Nawaz Sharif government.

Reports suggest that the Karachi Building Control Authority (KBCA) has gone all-out for sanctioning construction projects one after the other that will change the landscape and skyline of this city. The entire sea front of the city is expected to be lined up with towers and plazas. Within the city, two five-star hotels have been allowed to raise 50 plus floors structure at their car parking and swimming pool area.

A single giant project of 800 flats is coming up fast in the heart of the city — Garden East. The sponsor is said to be a stock broker who made his billion in the March scam of the Karachi Stock Exchange and is now converting it to billions. There are more than 20 private construction projects coming up within half-a-mile radius of the Aga Khan Gymkhana in the Garden area. In fact, the entire old town area of the city is witnessing a mushroom growth of construction projects where old mansions and houses are being pulled down.

The two utilities — KESC and the Karachi Water and Sewerage Board — are not happy with the KBCA for sanctioning the construction projects. Chief executives of the two utilities are said to have shown their resentment on the KBCA policy. Neither there is enough water nor electricity to meet the demands that will emerge from the upcoming construction projects.

An argument being offered is that the new construction projects, particularly those coming up at the sea front are self-sustained and self-contained. Each of these projects is said to have its own power generation plant and will get water from the desalination plant.

Fuel-based power generation plants will demand more oil import. The oil import bill in 2004-05 was close to $4 billion and is likely to touch $6 billion in the current fiscal year. There are now many more automobiles on the roads because of generous bank loaning and similar loaning for housing will place more demand for electricity and hence oil import.

Besides telling effect on the import bill, the proliferation of fuel-based power generation plants is bound to aggravate the environmental and noise pollution in the city.

The privatization of KESC is also causing confusion among its 1.8 million consumers who are being kept in complete darkness on the proceedings. KESC has been sold out twice during the last nine months. It was auctioned off to Saudi investors group Kanooz al Watan in February this year which backed out and refused to yield to persuasions and cajoling. The second highest bidder agreed to match the highest bid, which has been agreed twice within a month by the Board of Directors of the Privatization Commission and the Cabinet Committee on Privatization headed by the prime minister. The matter is said to have been referred to the federal cabinet.

The privatization of KESC was initiated in 1997 by the Nawaz Sharif government. KESC was marketed as a bad company loaded with heavy loans and the one that is groaning under heavy losses. It was said to be one of the most corrupt public sector entities in Pakistan. Army was inducted in 1999. But by the year 2005, transmission and distribution losses are said to be about 35 per cent.

There are almost half-a-million ‘kundas’ from where electricity is obtained without paying any money. A former KESC managing director disclosed in his press conference, just before his murder in 1997, that businessmen, industrialists and residents of Clifton and Defence are the main culprits who steal electricity.

In the event the government decides to hand over KESC to Hasan Associate, their first job would be to take up the installation of a power generation of at least 300 mw immediately.

The KESC’s own generation capacity is 1,756 mw, of which about 1,200 mw is being generated. Almost all the half-a-dozen generation stations operate on de-rated capacity primarily as a result of inadequate maintenance caused by funding constraints. KESC also purchases power from three private power operators and Pakistan Steel.

During the 1990s, KESC carried out a study for the construction of two power units of 700 mw adjacent to the Korangi Thermal Plant. The new owner of KESC may be asked to take up this project.

Quick revival of business activities in the city is the only prescription for tackling growing unemployment now estimated at around six per cent. Construction, infrastructure facilities, augmenting power and water supply need coordinated efforts within the framework of a master plan. Let there be a master plan indicating all development before proceeding ahead in any one area.