Earnings: $50b is the amount Turkey generated from the privatisation of the power sector. CREATIVE COMMONS
Pakistan and Turkey have agreed to form a technical working group in the energy sector in order to chalk out ways for close collaboration in the energy field. This was decided in a meeting between Secretary of the Ministry of Water and Power Saifullah Chatta with Turkish officials in Ankara, said a press release.
The Pakistani officials are visiting Turkey on the instruction of Prime Minister Nawaz Sharif in order to learn from the Turkish experience in privatisation of the electricity sector. While Pakistan has planned to privatise hydel projects, Turkey has successfully completed 100% privatisation of the power distribution companies and created a multi-buyer and multi-seller electricity market.
The Pakistani delegation held extensive meeting with Secretary of the Turkish Ministry of Energy and Natural Resources Metin Kilci, who offered to help Pakistan in organising a road show in Turkey. This could provide Pakistan an opportunity to sensitise Turkish entrepreneurs about the privatisation plans and allow them to showcase potential projects in the hydel, coal and the renewable energy sector to Turkish investors.
Kilci said that Turkey generated about $50 billion from the privatisation of the power sector. “As a result of privatisation, the public sector is saving over $10 billion per annum which were earlier losses of the power sector entities,” said Kilci. “Similarly, line losses were also reduced substantially in the post-privatisation era,” he added.
Deputy Director General of State Hydraulic Works Yakup Basogulu informed during the meeting that Turkish entrepreneurs have great experience in hydel projects. He further informed that as Turkey will soon utilise its full potential in the hydel sector, Turkish investors would be interested in such projects in Pakistan.
President of Privatisation Administration of the Turkish Ministry Ahmet Aksu gave an extensive briefing regarding power sector privatisation. He also offered to share the relevant legal framework whereby Turkey was successful in privatising its energy sector.
Ambassador of Pakistan to Turkey Muhammad Haroon Shaukat, Chief Engineering Advisor of the Ministry of Water and Power Asjad Imtiaz Ali and Director General of Energy Management at Alternate Energy Development Board Musaddiq Ahmed Khan Tahirkheli also attended the meeting.
The Pakistan delegation will also hold parleys with the executives of Turkish companies in the renewable energy sector in Istanbul to review progress on the ongoing Turkish projects in Pakistan as well as to discuss new initiatives.
Published in The Express Tribune, May 2nd, 2014.
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The Turks seem to be masochistic gluttons for punishment. The last time “collaboration in the energy field” took place, the Turkish company Karkey Karadeniz Electricity Production Corporation (Karkey) had to drag Pakistan to the World Bank’s International Centre for Investment Disputes (ICSID) where Pakistan is being sued for USD 2.1 Billion for breach of her obligations under the Pakistan-Turkey bilateral investment treaty (BIT), breaches of international law, and defiance of ICSID provisional measures order, in connection with Karkey’s investment in a rental power project (RPP) in Karachi.