The hearing was marred by uncertainty about the way the project is being pushed forward, attendees told The Express Tribune. The sponsors say the power plant will run on gas, which will be provided by Sui Southern Gas Company (SSGC) despite the ongoing shortages being faced by domestic and commercial consumers countrywide.
“This looks like a scam,” said Hamid Maker, a social activist and intervener in the hearing. “DHA Cogen is so sure of getting of gas that it confuses me. If there is extra gas to be allocated then why can’t it be given to existing power plants?”
The hearing was called by National Electric Power Regulatory Authority (Nepra) to receive public feedback on DHA Cogen’s petition seeking electricity tariff of Rs6.9 per kWh.
The plant produces power and helps run an attached water desalination facility. It is supposed to start working by end of 2013. DHA Cogen was inaugurated in 2008 but was shut down shortly after because of technical faults. Successive attempts to revive the project failed over infighting among investors.
According to the sponsors, SSGC has assured allocation of 70 million cubic feet per day (MMCFD) of gas for the plant. “It’s strange why this quantity of gas has not been allocated to the Karachi Electric Supply Company,” said Chaudhry Mazhar, another intervener.
Participants were told that local consortium of banks has negotiated a settlement with the sponsors who will now pay just 52% of the debt, which comes to around $32.6 million.
Some people asked Nepra to make it easy for DHA Cogen to get all the regulatory approvals but the Nepra officials said all relevant laws have to be followed. Nepra will decide its decision in weeks ahead after further talks with DHA Cogen officials.
Published in The Express Tribune, November 29th, 2012.
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