Wapda chief urges more hydel power generation

Water and Power Development Authority (Wapda) Chairman Lt Gen (retd) Muzammil Hussain said on Monday that the share of hydroelectric power in the total energy mix would be increased to 50% over the next 30 years to provide affordable energy to the consumers.

Addressing the business community during a visit to the Islamabad Chamber of Commerce and Industry (ICCI), he said that Wapda was working on improving water storage capacity of the country by building more dams.

He said that the share of hydel power in the total power generation would be increased to 50% by 2050. “This will boost business activities and the economy will grow faster,” the Wapda chairman told the business community.

On the occasion, he gave a presentation to the business community on the construction of Diamer Bhasha, Dasu, Mohmand and other dams. He praised the business community for “driving the economy” despite the high cost of electricity.

The Wapda chairman said that the average storage capacity of water in the world was 40% but in Pakistan it was less than 10%. “Wapda is working on improving the water storage capacity by building more dams,” he added.

“The Diamer Bhasha dam has created many new business opportunities, especially for steel, cement, transport and other sectors. Therefore, the business community should take full advantage of these opportunities to promote their businesses.”

Lt Gen (retd) Muzammil opposed the decision to split Wapda, saying that it affected coordination in the decision-making in the power sector and promoted circular debt. However, he added, the government was taking the matter seriously and he expected some good decisions would come.

He said that Wapda persuaded the government to hold negotiations with Independent Power Producers (IPPs), adding that if new agreement with the IPPs was implemented, it would save Rs700-800 billion annually.

Speaking on the occasion, ICCI President Muhammad Ahmad Waheed appreciated the efforts of the Wapda chairman for focusing on building more dams and generating hydel power. “These efforts will reduce the cost of doing business in the country and increase business activities,” he said.

Waheed emphasised that cheap power generation was essential to promote of business and investment. He also commended Wapda for achieving stable ratings from three agencies, describing them “a great achievement of the organisation”.

Founder Group Chairman Mian Akram Farid, in his speech, said that the activities of the manufacturing sector were affected by the high cost of electricity. Therefore, he stressed that more attention should be paid to hydel power to reduce the production costs.

He said that 250 sites had been identified for setting up small power plants in Pakistan but the process of awarding licences was not fair. He also called for improving the performances of the distribution companies (Dsicos) and a review of the fuel adjustment charges system.

On the occasion Senior ICCI Vice President Tahir Abbasi thanked the Wapda chairman for visiting the chamber offices and giving a detailed presentation to the business community.