Prime Minister Nawaz Sharif. PHOTO: FILE
Prime Minister Muhammad Nawaz Sharif is scheduled to inaugurate Pakistan’s first private hydropower plant in Azad Jammu and Kashmir on Monday. The IPP, Laraib Energy Ltd.,a subsidiary of Hub Power Company (Hubco) is being commissioned two months before schedule.
The 84 MW New Bong Escape Hydropower Project would replace approximately 135,000 tons of oil imports valued in excess of $100 million per annum. The New Bong Hydropower Escape Project will contribute 540 GWh of green energy annually into the national grid under a 25 year PPA with National Transmission and Despatch Company (NTDC.)
The project has the distinction of being Pakistan’s first hydropower project to be registered with the United Nations’ Framework Convention on Climate Change as a Clean Mechanism Development (CDM) Project, and has made solid contributions in offsetting green house emissions globally.
One of the biggest issues of the power sector in Pakistan is expensive power generation, and the inauguration of the country’s first private sector hydro IPP by Laraib Energy has paved the way for private sector investment in hydropower projects for producing cheap electricity.
As per official estimates, Pakistan has a potential of 100,000MW of hydel power generation. However, only about 6,500 MW of this potential has been harnessed so far.
Published in The Express Tribune, July 15th, 2013.
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@Khadim Karrar: If kickbacks were involved, where did the money go? Surrey mahal?
Are not the IPPs a cause of very expensive electric power which leads to unbearable circular debt which leads to nonpayment of dues which leads to persistent power outages? Mir kya sada hein beemar ho aye jis kay sabab Us hee attar kay londay say dawa laytay hein
Hubco is the same company that got a contract during the first BB government for about Rs. 5.00 per unit when the tariff for domestic electricity in Karachi was forty paisas per unit. Fishy. The IPP were given contracts on build operate transfer (BOT) basis for ten years. That is they were contracted to hand over these project to indigenous sources within ten years. I hear that they have bribed their way to prolong then years to thirty years. Can someone with evidence confirm?
@Namaloom Afraad: All thanks to PPP. And the previous agreement between them and IPP's really screwed the country. Yes, a great "People's" party.
Nmaloom Afraad is rite here. The cost of hydel isnt this high. Got to see who had the ownership of this IPP. That is ridiculous.
@Namaloom Afraad: Gas generation comes to Rs.12/unit, Furnace comes to Rs.18/unit Hydel Costs 1-2Rs. for Mega Dams, not these small run off the river dams
And hello - has any one read the Power Purchase Agreement? They are charging Rs8.5 per unit. Can you believe it??? State owned hydel generation costs Rs 0.5 per unit. This is 16 times more expensive to the comparable fuel - this is even more expensive than gas based generation. What a sham
the project was completed on March 23, 2013 and started generation...However inauguration ceremony is now taking place.
@Hataf Shahab:
We all need to get over the "who did what and who did not part" of politics. Your daily life does not need to revolve around politics. Be happy, you're getting cheap (yes hydel is cheap), clean, carbon-free energy, that will reduce the amount of load-shedding you and others will face in future.
It doesn't matter if it was approved by one and inaugurated by another. That happens everywhere in the world. When one person takes over another's job he picks off from where he left, he does not change the way the job is done. And seriously Pakistan needs that.
@Hataf Shahab: Haaahh! From where did you get this figment? The importance of this project is that it will save USD.100 million in FURNACE OIL IMPORTS and is a hydel power project. Viva! Salams
Same old mentality. Why he has to spend millions just to cut the ribbon. Or is it to replace the plate on foundation stone by some personality of previous regime?
ppp did nothing for the people of pakistan instead damaged the economy. they could change the pakistan in five years. nawaz sharif will inshalla change pakistan
@Hataf Shahab:
What can be done about the mentality where one cannot think beyond what you are thinking..............
Its just so sad. PPPP started projects and approved them, enabled the projects. And Nawaz Sharif is taking the undeserved credit. Tragedy