Energy investment: Asif gives clean chit to officials in graft scandal

Asks to move if anyone has a documentary proof against any official

ISLAMABAD:

Water and Power Minister Khawaja Asif has given a clean chit to the top officials of different energy departments over allegations that they demanded kickbacks and commissions from investors.

“I had documentary proof against three power projects and went to court and you should also do the same,” he suggested while addressing a press conference on Friday.

Responding to a question regarding demand of kickbacks by top official of the Alternative Energy Development Board (AEDB) from the investors, Khawaja Asif got upset and asked journalists to move to court as he had gone to the Supreme Court against rental power plants.



The question was raised that investors had complained that head of AEDP Asjad Imtiaz Ali was creating hurdles in process of renewable energy projects for the sake of kickbacks. However, the minister refuted allegations and asked to bring documentary evidences against him.

He said Pakistan had signed agreements with China to implement 8,320MW generation capacity power projects which would help to overcome load-shedding by end of 2017.

“China will bring $20 billion investment to implement these power projects,” Khawaja Asif said, adding that these projects would be launched in all the four provinces including Azad Jammu and Kashmir (AJK). He stated that no province has been ignored in setting up power projects.

“Chinese investment is a good signal for investment sentiment for the foreign investors,” he said, adding that these projects would be completed from 2018 to 2020.

Casa-1000MW power project, the federal minister said, was being signed in Istanbul and final tariff would be determined by the National Electric Power Regulatory Authority (Nepra). “The first flow of electricity would start in 2019,” he added.

While talking about Gadani power project, he said the government had shifted a priority of Gadani power project due to lack of infrastructure and also because of implementation of power projects scheduled to complete in 2018.

Khawaja Asif maintained that recovery of power bills had increased by 3.2% and power distribution and transmission losses had also been reduced by 1% compared to the same period last year.



“The circular debt is also Rs70 billion less than that of last year,” he pointed out, adding that power prices had come down by Rs4.42 per unit due to decline in global oil prices and would rise if it go up.

He admitted that the government was not operating power plants at optimum level despite dip in oil prices. “We will try to operate power plants at optimum level in summer season,” he said.

According to the minister, power production stood at 16,500MW last year and the government would achieve it in the recent summer season.

While describing that there was no issue of oil shortage, he said, “Uch power plant has been shut down due to issue on gas field.” Some 900MW electricity from Uch power plant would be restored in a couple of days, he added.

Khawaja Asif said setting up payment mechanism to LNG suppliers was at advance stage and it would be resolved soon. “We take advantage in oil supply from Pakistan State Oil (PSO) but we do not want to take risk in LNG supply which requires immediate payment,” he stated.

LNG, he further said, would be supplied to Kapco and four other Lahore-based power plants, adding that 3,600MW electricity through LNG based power plants would be injected in national grid in the next two years.

Published in The Express Tribune, April 25^th, 2015.