Province should invest in hydel pojects: KPCCI

Despite feasibility studies having been conducted, little action has been taken.

PESHAWAR:

The Khyber-Pakhtunkhwa Chamber of Commerce and Industry (KPCCI) President, Dr. Muhammad Yousaf Sarwar criticised the provincial government for failing to initiate new hydel power projects.

“Sarhad Hydel Development Organisation (SHYDO) has spent a large amount on its offices and vehicles for officers which could be used to fund two small hydel power projects in the province,” said Sarwar, in his first interaction with the media after he took charge.

The Reconstruction Opportunity Zones (ROZs) project was also abandoned by the Americans and was rejected by the US Congress, Sarwar said.

The US government, in addition to the provincial government, was not serious about these projects despite feasibility studies having been conducted.

“The net hydel profit should be used by the government to construct small dams as it would decrease the cost of producing electricity rather than borrowing money from banks,” Sarwar argued. Local companies lack the financial base to invest and international companies try to make a larger profit he said, suggesting that the province should itself invest in these projects.

The cost of producing electricity from Malakand-III is Rs1 per unit, but it is sold at Rs 4 per unit. Sarwar said the additional charge of Rs3 was being used to repay bank loans.

Strongly supporting the idea of devolving power and gas production to provinces, Sarwar said that their distribution should also be decided by the provinces to ensure that the electricity produced is supplied to the local industry.

Published in The Express Tribune, October 7^th, 2012.