“We have our reservations over certain provisions of the policy, which has harmed our financial interests,” said Khyber-Pakhtunkhwa Chief Secretary Ghulam Dastagir, citing “reservations over water charges” as an important issue, without elaborating on the implications of such a charge on the province.
“Water charges will be levied on companies using water from Khyber-Pakhtunkhwa for electricity generation,” an official said.
The provincial government is demanding an increase of Rs0.85 per kilowatt, while the present rate is Rs0.15 per kilowatt. The government expects that it will initially collect Rs3 billion from water charges.
According to the policy, entrepreneurs who establish a hydropower project in Khyber-Pakhtunkhwa will hand the project over to the federal government after 30 years. “The provincial government is demanding that the project be returned to the provincial government instead of the federal government,” said the chief secretary.
The provincial government is also demanding that it be authorised to permit private hydropower projects having the capacity to produce unlimited electricity. Presently, the province is allowed to permit projects capable of producing only 50 megawatts of electricity.
A detailed summary is in the making, which will be forwarded to CCI for inclusion in its next meeting which is supposed to take place in December in Islamabad.
Meanwhile, a senior official on the condition of anonymity said that the national power policy has become ineffective following the 18th Amendment. “The federal government should come up with a new policy within the next three months,” the official said.
Khyber-Pakhtunkhwa has immense potential for the production of hydroelectricity, he said adding that there is an urgent need for the public and private sector to utilise untapped resources.
‘’The provincial government is giving highest priority to hydro electric projects,” the official said adding that, “we want to simplify various procedures relating to new power projects.”
The provincial government hopes to streamline awarding hydro projects across the province through broad guidelines on the policy, officials said.
The provincial government is expected to outline measures to rope in more investments to tap hydroelectricity potential, with an emphasis on making the sector attractive for private players, government officials said.
Meanwhile, the Khyber-Pakhtunkhwa government has also received requests from local and foreign entrepreneurs for setting up hydropower projects in Malakand and other regions.
Published in The Express Tribune, November 9th, 2010.
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