Worst power outages on first day of Ramazan

 

 ISLAMABAD: All the claims of the federal government on reduced electricity loadshedding during Ramazan and zero loadshedding during Sehr, Iftar and Taraveeh prayers fell flat as the people across the country had to face the worst power outages on the first day of the holy month, making it hard for them to make preparations for Sehr and Iftar.
In the twin cities of Rawalpindi and Islamabad, the people had to suffer almost 12-hour-long power outages. Before the start of Ramazan, the situation was better as there was only six-hour to eight-hour loadshedding. With the commencement of fasting, the situation got aggravated and the power outages had gone up to 12 hours.

In the adjoining areas of the twin cities like Taxila, Attock, Chakwal, Gujjar Khan, Mandra, Jhelum and others, loadshedding had made the lives of people miserable.In Lahore, power outages during Sehri, Iftar and Taraveeh timings continued, making people’s lives miserable on the first day of Ramazan.

In addition to the curse of erratic power supply, people complained about power failure after every hour throughout the day. They said they felt intensity of outages had increased during the last couple of days. Since 4:00am on the first day of Ramazan, the power supply became disrupted after every hour till 7:00pm, said Khalid Khan, a resident of Bhatti Gate. This type of loadshedding had not been done before Ramazan during the daytime, he said adding that such ‘constant’ power failures also led to water shortages in their area.

The data of Lahore Electric Supply Company (Lesco) indicates that power availability during Sehri, Iftar and Taraveeh is not in accordance with the claims made by the Ministry of Water and Power. Against the demand of over 4,500MWs, Lesco is getting just 3,400MWs during Iftar and Taraveeh timings.

Throughout the day, as per the official data, people living in Lesco areas were made to suffer from over 50 percent shortfall in electricity supply. Against the peak demand of about 4,500MWs, Lesco is getting jut 2,400MWs of electricity during the rest of the day. The menace of unannounced loadshedding is in addition to the power suspensions made under the load management plan.

Lesco said on Monday some variations might occur in the revised load management plan for Ramazan due to system overloading issues, especially on grid stations being fed from 220KV New Kot Lakhpat grid station.

Under the revised load management plan, the industry faces the biggest brunt of outages. As many as 12 hours of outages are being observed in textile industry, furnace, continuous process industry and steel re-rolling mills.

Meanwhile, power shortfall was recorded at 4,500MWs on Monday. Power generation was recorded at 13,500MWs while the demand for electricity hovered around 18,000MWs. Hydropower generation was recorded at 5,100MWs.

Other districts of the Punjab, including Faisalabad, Toba Tek Singh, Sheikhupura, Gujranwala, Gujrat, Multan, Bhawalpur, Rahim Yar Khan, were also the hit by loadshedding.The situation in rural areas of the Punjab was all the more serious as the people had to suffer more than 18 to 20 hours of loadshedding.

The power supply situation in other provinces was no different as in Sindh,particularly in the rural areas, the power outages had gone beyond the limit of human endurance. In Khyber Pakhtunkhwa (KP), the loadshedding issue had become so ugly that around 12 hours of prolonged and unscheduled power loadshedding was being carried out in the province.

In the upper parts of Hazara division, loadshedding added to the woes of the people who were fasting in sweltering heat.The local people complained that they were facing power outages at Sehr and Iftar. “The government had announced to reduce the duration of power outages during Ramazan,” said Mohammad Riaz, a shopkeeper.

He said the government should provide relief to the people in Ramazan and reduce the duration of power outages as the people were braving the scorching heat.“The people are fasting in scorching heat, so the government should provide them some relief,” he said.

Faiz, the leader of a traders body, said that they would take to the streets if the duration of power cuts was not reduced to less than five hours a day.“The government should provide relief to the people as they are fasting in sizzling heat without electricity that is out for hours at a stretch,” he said.

Power sector close to collapse under Rs513.37 billion debt

ISLAMABAD: Amid the unprecedented power shortages of over 7,000MW, Pakistan’s power sector receivables have risen to a whopping Rs513.368 billion in the first 10 months of the current financial year 2013-14, threatening collapse of the entire system.
According to the latest documents on receivables as of April 2014 available with The News, the provinces are required to pay Rs87.256 billion that include Sindh’s Rs54.547 billion, KP Rs20.540 billion, Punjab Rs6.619 billion, Balochistan Rs5.550 billion and the AJK’s Rs36.693 billion.

The shocking fact is that the government has failed to collect electricity bills from private sector consumers as this sector has emerged as the biggest defaulter owing a mammoth Rs345.386 to the Pakistan Electric Power Company (Pepco).

The document also unveils that the domestic sector in Fata is required to pay Rs32 billion, which has also been included in the head of private sector consumers.

Finance Minister Ishaq Dar said that the government was going to implement a special plan next week to improve the recovery of electricity bills as the finance ministry had no money to clear the circular debt that had risen to over Rs300 billion.

The prime minister is worried and annoyed over the appalling situation of power sector and it is clear that the Ministry of Water and Power is bound to speedily recover these bills and clear the circular debt. However, the finance ministry will also depute a senior official to help the Ministry of Water and Power to recover the dues.

Dar said that he was going to soon pay more to the Ministry of Water and Power from the head of inter-tariff differential subsidy so that PSO’s imminent default could be averted.

Meanwhile, the IPPs have reduced their power generation by over 1,600MW despite the fact that they have the capacity to generate 8,500MW of electricity. They have reduced their generation just because of non-availability of the required liquidity. They have no money to pay the interest to banks on loans they have borrowed to purchase the fuel. The government owes Rs210 billion to the IPPs and if the situation continues unabated, then the IPPs may halt their operations exposing the country to more loadshedding, according to Adbullah Yousaf, the Chairman of Advisory Council of the IPPs.

Meanwhile, the Pakistan State Oil is on the verge of being declared a defaulter as one of its letters of credit (L/C) is going to expire on Friday, June 13.The dues of PSO have also swelled to Rs130 billion as of today that the power sector has to pay to the state-run entity.

“We have supplied furnace oil of Rs160 billion to the power sector by June 9, 2014 in the current financial year and in return PSO miserably lacks the liquidity as the power sector is not paying for the fuel it has used so far,” a senior official in PSO told The News.“This situation has exposed PSO with zero liquidity because of which it has no fiscal space to place more orders to import furnace oil for power generation.”

New projects to generate power, jobs, says Nawaz

 

SAHIWAL: Prime Minister Nawaz Sharif on Friday, inaugurating the first coal-fired power plant in Punjab, said that new projects will generate electricity and create scores of jobs in the country. He opened a landmark coal-fired plant that would generate 1,320MW of electricity and help the country meet its energy shortage.
The project comprising two units of 660MWs each will be operational in two years and will start adding electricity to the national grid by 2016. The PM said the project would not only help meet the electricity shortage but also create employment for the people of the Sahiwal district and contribute to the national gross domestic product.

The PM recalled the love of the people of Sahiwal. “You are being duly rewarded for standing by the PML-N,” he said and added he was grateful to the people of Sahiwal for their support. He said the people of Sahiwal would again benefit from the soon-to-be inaugurated Lahore-Karachi Motorway. He said Rs55 billion had been allocated for acquisition of land for building the motorway. The PM mentioned the efforts and commitment of Punjab Chief Minister Shahbaz Sharif in making the dream of a developed Pakistan come true.

The PM said the government was toiling day and night to meet the energy shortfall. He regretted that despite 23,000MW installed capacity in the country, the operational capacity was only around 13,000MW and vowed that in the next eight to 10 years his government would10 years his government would double the power generation.

He recalled the inauguration of a similar power project to generate 1320MW electricity at Port Qasim a few weeks back and would be inaugurating the Nandipur power project on Saturday. He mentioned the Pakistan-China trade corridor project and termed it a “game changer” for both the countries as the 2,700km long link from Kashgar to Gwadar. He said the highway passing through all the provinces of the country would open up new vistas of development and progress.

He said Rs35 billion had been allocated for acquisition of land for the Bhasha Dam and the money had already been released. He said the project would generate 4500MW, while the Dasu Dam would also generate an equal amount of electricity and added that with the completion of the Neelum-Jhelum Project, the total installed capacity would almost double from the current generation.

The PM said he had a dream of turning the Gwadar Port into a Dubai, Singapore or Hong Kong and it would have a modern shipping port and an international airport.The PM mentioned that 10 power units would be set up at Gadani, six in Punjab, 10 at Thar and hoped the country’s energy needs would be fulfilled.

Nawaz said the economic indicators of the country were positive and GDP had risen to 4.1 percent, manufacturing up by 5.5 percent while foreign exchange reserves had gone up enormously.

Our Correspondent adds from Lahore: Punjab Chief Minister Shahbaz Sharif said the most modern coal power project of 1320MW in Sahiwal would be completed in record time period. He said it was the first coal-based power project, being installed with the cooperation of Chinese companies in Punjab. He said loadshedding would be eliminated under the leadership of PM Nawaz Sharif and more coal power plants of this kind would be set up in the province.

Shahbaz Sharif said in order to stabilise national economy and promote agriculture and industrial sectors, Nawaz Sharif accepted this challenge and evolved a comprehensive strategy for resolving energy crisis. Similarly, he said, the cost of electricity produced from fuel is very high. He said with regard to medium-term planning, generation of power from coal costs almost half compared to fuel while this project can be completed in a comparatively shorter period of time.

Shahbaz said Pakistan did not have oil or gas reserves like Middle Eastern countries, however, it is fortunate to have a leader like Nawaz Sharif who has extraordinary power of decision-making and determination. He said PM Nawaz Sharif worked day and night for power generation projects and in a meeting of Joint Economic Commission of China and Pakistan held on February 19, 2014 in Beijing it was agreed that power projects of 20 thousand megawatts will be set up in Pakistan during the next seven years and this has been made possible due to invaluable cooperation of Pakistan’s greatest friend, China.

The CM also thanked provincial ministers concerned especially Malik Nadeem Kamran, Walait Shah Khagga and his son as well as assembly members from Sahiwal, elected representatives, chief secretary, senior member Board of Revenue, additional chief secretary energy and other officials and said the entire team worked very hard to acquire land for the project in a transparent manner and it deserves all credit.

New projects to generate power, jobs, says Nawaz

 

SAHIWAL: Prime Minister Nawaz Sharif on Friday, inaugurating the first coal-fired power plant in Punjab, said that new projects will generate electricity and create scores of jobs in the country. He opened a landmark coal-fired plant that would generate 1,320MW of electricity and help the country meet its energy shortage.
The project comprising two units of 660MWs each will be operational in two years and will start adding electricity to the national grid by 2016. The PM said the project would not only help meet the electricity shortage but also create employment for the people of the Sahiwal district and contribute to the national gross domestic product.

The PM recalled the love of the people of Sahiwal. “You are being duly rewarded for standing by the PML-N,” he said and added he was grateful to the people of Sahiwal for their support. He said the people of Sahiwal would again benefit from the soon-to-be inaugurated Lahore-Karachi Motorway. He said Rs55 billion had been allocated for acquisition of land for building the motorway. The PM mentioned the efforts and commitment of Punjab Chief Minister Shahbaz Sharif in making the dream of a developed Pakistan come true.

The PM said the government was toiling day and night to meet the energy shortfall. He regretted that despite 23,000MW installed capacity in the country, the operational capacity was only around 13,000MW and vowed that in the next eight to 10 years his government would10 years his government would double the power generation.

He recalled the inauguration of a similar power project to generate 1320MW electricity at Port Qasim a few weeks back and would be inaugurating the Nandipur power project on Saturday. He mentioned the Pakistan-China trade corridor project and termed it a “game changer” for both the countries as the 2,700km long link from Kashgar to Gwadar. He said the highway passing through all the provinces of the country would open up new vistas of development and progress.

He said Rs35 billion had been allocated for acquisition of land for the Bhasha Dam and the money had already been released. He said the project would generate 4500MW, while the Dasu Dam would also generate an equal amount of electricity and added that with the completion of the Neelum-Jhelum Project, the total installed capacity would almost double from the current generation.

The PM said he had a dream of turning the Gwadar Port into a Dubai, Singapore or Hong Kong and it would have a modern shipping port and an international airport.The PM mentioned that 10 power units would be set up at Gadani, six in Punjab, 10 at Thar and hoped the country’s energy needs would be fulfilled.

Nawaz said the economic indicators of the country were positive and GDP had risen to 4.1 percent, manufacturing up by 5.5 percent while foreign exchange reserves had gone up enormously.

Our Correspondent adds from Lahore: Punjab Chief Minister Shahbaz Sharif said the most modern coal power project of 1320MW in Sahiwal would be completed in record time period. He said it was the first coal-based power project, being installed with the cooperation of Chinese companies in Punjab. He said loadshedding would be eliminated under the leadership of PM Nawaz Sharif and more coal power plants of this kind would be set up in the province.

Shahbaz Sharif said in order to stabilise national economy and promote agriculture and industrial sectors, Nawaz Sharif accepted this challenge and evolved a comprehensive strategy for resolving energy crisis. Similarly, he said, the cost of electricity produced from fuel is very high. He said with regard to medium-term planning, generation of power from coal costs almost half compared to fuel while this project can be completed in a comparatively shorter period of time.

Shahbaz said Pakistan did not have oil or gas reserves like Middle Eastern countries, however, it is fortunate to have a leader like Nawaz Sharif who has extraordinary power of decision-making and determination. He said PM Nawaz Sharif worked day and night for power generation projects and in a meeting of Joint Economic Commission of China and Pakistan held on February 19, 2014 in Beijing it was agreed that power projects of 20 thousand megawatts will be set up in Pakistan during the next seven years and this has been made possible due to invaluable cooperation of Pakistan’s greatest friend, China.

The CM also thanked provincial ministers concerned especially Malik Nadeem Kamran, Walait Shah Khagga and his son as well as assembly members from Sahiwal, elected representatives, chief secretary, senior member Board of Revenue, additional chief secretary energy and other officials and said the entire team worked very hard to acquire land for the project in a transparent manner and it deserves all credit.

PM Nawaz inaugurates coal power project in Sahiwal

SAHIWAL: Prime Minister Mian Muhammad Nawaz Sharif laid the foundation stone of two coal based power plants in Sahiwal on Friday, Geo News reported.

Prime Minister Mian Nawaz Sharif was accompanied by Chief Minister Punjab Mian Shahbaz Sharif and Minister for Water and Power Abid Sher Ali.

The project will be completed in 2016 with the cooperation of China and the plants will generate 1320 megawatt electricity collectively once functional.

Addressing from the ceremony, PM Nawaz said that Gwadar will be developed to the level of Dubai and Singapore.

He said that the country inherited several challenges including energy crisis and the government has worked consistently to overcome these problems.

He further said that Sahiwal will be benefited from the motorway that will be built from Karachi to Lahore.

Power bills to be deducted from provinces’ funds

 

ISLAMABAD: In a major development, the Council of Common Interests (CCI) headed by Prime Minister Nawaz Sharif has managed to persuade the four federating units for at source deduction of 25 percent of their current electricity arrears as this will help eradicate the emergence of the circular debt.
Sindh Finance Minister Murad Ali Shah said that at source deduction of electricity bills of provinces would start from July 1, 2014 and the federal adjuster would deduct 25 percent of the electricity bills that the province would receive in the month of July. The issue of previous arrears would be reconciled within 30 days.

The 75 percent amount will be adjusted after reconciliation process between the federal government and the province concerned and in case it is found that the Centre has deducted an unjustified amount, it will be adjusted later next month. The federal adjuster will be appointed by the federal government in finance ministry.

Minister for Finance Ishaq Dar, when contacted, also confirmed that the federal adjuster would deduct 25 percent of current bills and in order to clear the old arrears, the Ministry of Water and Power and the provinces would settle the issue through reconciliation.

He told the CCI meeting that the process would be in place from July 1, 2014 through the federal adjuster. The participantsof the meeting also stressed the need for reconciling the old dues. The meeting decided that representatives of the provinces would sit together to sort out the issue of old dues within 30 days and its report should be presented in the next CCI meeting.

Shah said that Balochistan chief minister had objected to the initiation of the population census process in the country saying his government had successfully held the local bodies’ polls in the province and the current security situation in the province was not good enough to carry out a census. In case the census was held, what would be the fate of the existing local governments? He wondered if the local bodies’ polls in the province would be held again.

However, Khyber Pakhtunkhwa and Punjab chief ministers said that they had no objection to holding of the population census in their provinces, but maintained that the local bodies polls should be held after the census.

Prime Minister Nawaz Sharif then said that he would personally consult the chief ministers of the four provinces and the issue would be discussed in the next CCI meeting for final decision.Shah also said that the provinces had refused to absorb the new employees recruited in those departments and ministries by the federal government which had been devolved to the provinces after the 18th Amendment.

However, the provinces were ready to accommodate those employees who were working in the said departments and ministries the time the 18th Amendment was passed.

Sindh objected to the summary of the KP seeking changes in the Irsa Act 1992 for monetary compensation from the province that consumes water from the share of other provinces, which it cannot utilise because of non-availability of required infrastructure. He said that Sindh had also objected to the move under which the federal government wanted to utilise the water of the river Indus for consumption of Islamabad and Rawalpindi. In the meeting, it was decided that the federal government would approach the Irsa (Indus River System Authority) to resolve this issue.

A press release says that the CCI meeting also approved the Pakistan Energy Efficiency and Conservation Bill 2014 (PEEC) for placing it before parliament. The PEEC will formulate the national policy on energy conservation and will suggest measures in this regard. It will also create an awareness about energy conservation.

The meeting also approved an amendment to the Criminal Procedure Code (CrPC) 1898 for restoration of executive magistracy.

While discussing the agenda item on inquiry into the Kacchi Canal, the prime minister expressed displeasure at the delay in the inquiry and directed the holding of the inquiry through international auditors to fix responsibility. He called for technical as well as financial audit of the scheme.

The agenda of the sixth population census was deferred till the next meeting. The prime minister directed that the concerns raised by the Balochistan CM should be discussed with the Balochistan government and a report be submitted within two weeks.

The CCI also approved amendments to the Gwadar Port Authority Act. It was decided that the chairman of the Gwadar Port Authority would be a nominee of the Balochistan chief minister. Regarding the matter of 50 percent membership of the Board of Governors of Gwadar Port Authority, it was decided that amendments to the Act would be made.

The CCI also approved permanent absorption of federal employees transferred to the provincial governments after devolution through the 18th Amendment. The meeting also decided to expedite the absorption process.

Senator Ishaq Dar briefed the CCI on public debt management and supervision policy. He said in order to improve the debt management operation, the government had initiated a process of preparing a comprehensive medium-term debt strategy in consultation with all the stakeholders. The strategy would facilitate in making strategic decisions for new borrowing, including an appropriate mix between domestic and external loans to finance the budget deficit, he added.The meeting also endorsed the Framework for the 11th Five-Year Plan (2013-18) and Pakistan Vision 2025.

Nawaz okays two more coal-fired power plants

LAHORE: Prime Minister Muhammad Nawaz Sharif on Saturday approved two additional coal-fired power plants to be constructed by the government in Gadani on the mode of the Independent Power Producer (IPP).

The approval to this effect was granted by the prime minister in a meeting held here under his chair to review the pace of work on the Gadani power project.

He said on the occasion that the nation would be provided relief as far as loadshedding was concerned as efforts were afoot to generate more power to bridge the demand-supply gap.

He also directed the authorities concerned to provide maximum relief to the people from loadshedding during the holy month of Ramazan.

The premier said that attractive tariff for coal-fired power plants has drawn investors from the world to invest in the power projects in Pakistan. He also appreciated Chinese investment in the energy sector and especially the Gadani Power Park.

During the meeting, the prime minister also directed that sufficient funds should be allocated for these additional projects in the Public Sector Development Programme.

Earlier, the prime minister was given a detailed briefing on the status of the project. He was told that the feasibility study of the infrastructure installation would be completed by the end of June, which included a geo-technical investigation, water resource survey, jetty breakwater and cooling water intake system. The environment impact system study would be completed by June 30.

The prime minister was told that the work on land levelling and grading on the site would start within three weeks and be completed in three months. He was also briefed that the coal handling and conveying system infrastructure would be installed in 22 months. Similarly a jetty breakwater and allied infrastructure would be completed in 32 months. — APP

INP adds: Prime Minister Nawaz Sharif has directed to provide maximum relief to the people from loadshedding during the holy month of Ramazan and said that first turbine of the Nandipur power project would be inaugurated on 31st May.

During meeting the prime minister said getting out of the energy crisis is the first priority of the government.

The meeting was attended by Chief Minister Punjab Shahbaz Sharif and others.

The prime minister said that the government would implement the promises made to the people during the elections. He said they also believe in strengthening democracy and institutions and assured that those trying to do the politics of anarchy would not be allowed to succeed.

Thai PM denies abuse of power in key legal challenge

BANGKOK: Thailand´s besieged Prime Minister Yingluck Shinawatra denied an abuse of power allegation at the nation´s Constitutional Court on Tuesday in a legal challenge which could see her removed from office.

The case, one of two potential knockout legal moves against her premiership, comes as Thailand´s political crisis reaches a critical juncture.

Anti-government protesters are still massed on Bangkok´s streets -- although in diminished numbers -- and Yingluck´s supporters are also threatening to rally to defend her.

The premier denied the complaint, filed by a group of senators, who said that the replacement of then-national security chief Thawil Pliensri after she was elected in 2011 was for the benefit of her party.

"I deny the allegation... I didn´t violate any laws, I didn´t receive any benefit from the appointment," a composed Yingluck told the court, adding she replaced Thawil for the benefit of the country.

Under the constitution -- forged after a 2006 coup that ousted Yingluck´s billionaire brother Thaksin Shinawatra as premier -- such an offence could lead to her removal and a ban from politics.

The court could also extend its verdict to cabinet members who endorsed the decision to remove Thawil, potentially dislodging a layer of ruling party decision-makers with ties to Thaksin, who lives overseas to avoid jail for corruption convictions.

Thawil has been re-instated as head of the NSC by the order of another court.

"It´s up to the judges," said Jarupong Ruangsuwan, leader of the ruling Puea Thai party, told before the hearing.

"All I can say is that if the court convicts the prime minister and her entire cabinet there will be turmoil," he said, adding "all may be known today".

The court has not given a date for its ruling.

Bannu: Protest against prolonged power outages

BANNU: Agitated by relentless load shedding, the residents staged a protest in Bannu and resultantly blocked Bannu-Kohat Road by burning tyres on Friday, Geo News reported.

The demonstrators told that the duration of unannounced power outages has reached up to 22 hours in Bannu and adjoining areas that has adversely affected the business and forced many to close down.

The situation has compelled the citizens to stage a sit-in on Bannu-Kohat Road due to which the road has been blocked for traffic for hours. As a result of protest, long queues of vehicles have been formed on the main artery.

On the other hand, the load shedding duration in urban areas of Northern Balochistan is 15 hours while 18 hours in rural areas. 12-14 hour load shedding is being carried out in Sindh while the situation in Punjab is also not different.

MPAs threaten to stage sit-in against Islamabad vindictive power cut in Sindh

KARACHI: Pakistan People’s Party (PPP) and Muttahida Qaumi Movement (MQM) members in Sindh assembly here on Tuesday went on a protest against the unannounced and prolonged load shedding in the rural and urban areas of the province piling miseries on the people, Geo News reported.

PPP members urged upon the Sindh government to lodge a formal protest with the federal government for the injustices being perpetrated on the people of Sindh and ensure forthwith the due share of power supply to the province otherwise the members of the assembly would be forced to lead the vexed citizens’ protests and sit-ins on the roads and streets of the province.

PPP’s Nawaz Chandio, MQM’s Muhammad Hussain and others honourable members of the Sindh assembly raising their voice against the unannounced and prolonged load shedding termed the power outage federation’s vengeance against Sindh.

On the other hand, Pakistan Muslim League (PML-N)’s opposition member Irfanullah Marwat, assuring his full support to the agitation against the federal government for power cut in Sindh, said that the Sindh Chief Minister, Syed Qaim Ali Shah should also take out processions like Shahbaz Sharif did in PPP tenure. Those sitting in air-conditioned rooms should also know how one feels during the load shedding, he remarked.

Senior Provincial Minister, Nisar Khuhro sharply reacting to the remarks of the opposition member said when do your want to take out the procession, let us go right now.

Following some exchange of barbs between the opposition and treasury members, the Speaker on one occasion sensing the situation getting extremely tense warned the members that session could be adjourned to bring the agitated and angry members under control.

Power shortfall will be made up in about 2/3 years: PM

DERA MURAD JAMALI: Prime Minister Muhammad Nawaz Sharif on Friday announced that government would ensure provision of natural gas to each and every city of Balochistan within three years. He added that the government would overcome the energy crisis in three years.

The Prime Minister directed Minister of Petroleum and Natural Resources Shahid Khaqan Abbasi to personally monitor this project and ensure its completion on time.

The Prime Minister made the announcement after inaugurating the 404 megawatt Uch II Power Plant at Dera Murad Jamali that will contribute an aggregate of 990 MW gross electricity to the national grid. The Uch II Power Plant the Independent Power Plant (IPP) has been constructed by GDF SUEZ a French company presently working in 70 countries.

Addressing the gathering at the inauguration ceremony here the Prime Minister said Balochistan was neglected in the past but the democratic government would take necessary steps to mitigate the sense of deprivation of people of the province. He said his government had planned a big development programme for Balochistan and its people.

He announced installation of two separate power lines from Uch II Power Plant to Naseerabad and Sibbi Divisions of Balochistan. The Prime Minister said the power project was significant mainly for two reasons firstly it would be based on an indigenous gas by substituting expensive liquid fuel thus saving foreign exchange and secondly it has been set up in Balochistan.

He commended the contribution of GDF Suez for successful commissioning of the project which he said was a valuable addition to the national grid. He said GDF Suez had been a reliable energy partner for Pakistan for many years and was also playing its role in the socio economic development of the province. He invited the French company to undertake more investment in Pakistan's energy projects.

Nawaz Sharif said the electricity shortfall in the system had a very negative impact on the development of the country. He said new power projects were being constructed using conventional and renewable energy resources and technologies. He mentioned that the government's steps in this regard including clearing of Rs 500 billion of circular debt and initiating the work on Neelum Jhelum project and Nandi Pur project that will add 959 MW and 425 MW to the national grid respectively.

Besides development of Thar Coal Project Jhimpir project in Sindh and solar projects in Punjab are also prominent steps to overcome power shortage he said.

Chief Minister Dr Abdul Malik Baloch said the project would contribute to overcoming the energy shortage and would invite further foreign investment in Balochistan. He said the project will not only help in curtailing the present power shortages but also provide cheap electricity to the consumers and save precious foreign exchange in oil imports.

Information Minister Pervaiz Rashid Minister for Petroleum and Natural Resource Shahid Khaqan Abbasi and Minister of State Abid Sher Ali were also present.

MEPCO staff taken hostage by power thieves at Munro

DERA GHAZI KHAN: Multan Electric Power Company (MEPCO) personnel have been taken hostage by area-residents for disconnecting illegal electricity connections.

According to the political administration at Fort Munro, area-residents enraged over the removal of ‘kundas’ (illegal connections) by MEPCO staff, have taken them hostage. The hostages include 17 members including one SDO. The MEPCO team was conducting a drive against electricity theft.

Source further add that the border military force has been called on, for securing the release of the MEPCO team.

Power outages intensify, loadshedding rises

LAHORE: The intensity of infamous outages or frequent power suspension has increased by at least one-third with rising demand of electricity amid a fairly mild weather.
The Lahore Electric Supply Company also officially increased duration of outages to eight hours a day from six hours, according to new load management schedule being implemented from this weekend. Presently demand in the Lesco areas, including districts of Lahore, Kasur, Sheikhupura and Okara stand at 3,100mw which saw a jump of about 600mw in just a few weeks.

With fading spring and approaching summer, outages tend to increase by at least two hours daily though people complain far greater cuts in power supply. Their complaints are justified especially when power demand and supply witnessed an abrupt imbalance, causing increase in frequency of outages. It happens due to shutdown of power generation plants or rising temperature in various parts of the country.

This fragile nature of power demand and supply is an ample proof that the electricity crisis in the country has yet to be managed prudently. The increasing unreliability in electricity supply is a key aspect that shows how whole power sector is being managed. Though overall duration of outages are less than the levels of last year during same days, smooth supply of power or announced outages is still a distant dream.

The main factor positively affecting electricity supply scenario in April 2014 if compared with corresponding period of last year, when incumbent government has yet to come into power, is a visible mild weather. Such a pleasant weather helped contained power demand below 12,000MW in the month of April this year in sheer contrast to last year’s demand that hovered around 14,000MW. The average demand of electricity in the whole month of April last year was 13,980MW while maximum demand observed in current month has been 12,500MW.

The power generation in present month and corresponding period of last year happened to be almost same-at around 9,500MW. The shortfall hence is on lower side only because of low demand of and partly because of a comparatively better management of generation capacity.

As per latest power demand and supply data released by National Transmission and Despatch Company (NTDC), generation of electricity stood on Sunday at 10,100MW as compared to the demand of 12,200MW, showing shortfall of 2,100MW. The contribution of hydel generation still low as it was recorded at 2,820MW while public sector thermal generation registered at 1,130MW. The independent power producers (IPPs) were generating electricity to the tune of 6,150mw.

Chinese consortium to set up two power plants in Pakistan

 

SANYA, China: Prime Minister Nawaz Sharif on Friday said the early harvest projects were important for Pakistan and their timely completion will give a boost to the national economy.
The prime minister stated this at a breakfast meeting with Chinese investors in Sanya, China.Qui Yafu, Chairman RUYI Group, a textile company, and Wang Weng Zong, CEO Huaneng Shanday, a power company, met the prime minister.

The Chinese companies showed their intention to form a consortium for investment in power sector in Pakistan in order to build two power plants.They appreciated the investment policies of Pakistan and said that pro-investment policies had attracted them for investment in Pakistan.

The prime minister said that the Chinese investment is important for Pakistan and it will bring Pakistan’s economy into take off stage.He said there are several opportunities in energy and infrastructure sector which provide investment opportunities to Chinese investors.

Nawaz assured full support and assistance of the government and said that the minor hiccups would be tackled. The two sides also exchanged documents showing agreement and intent of the two sides for investment in Sahiwal Power Plant.

The prime minister while talking to the media at this occasion said the Chinese consortium had agreed to invest in Sahiwal Power Plant which is another milestone achieved in the energy sector projects.He said that the construction of the project will begin in May this year and will be completed by 2016. It will have two power plants, each of 660 megawatt, producing 1,320 megawatt.

Pakistan should stop power, gas theft: ADB

 

ISLAMABAD: The Asian Development Bank (ADB) has asked Pakistan to stop power and gas theft as an increase in their tariffs may increase inflation.
The Bank will provide Islamabad $3 billion over a three-year period, said its country director Werner E Liepach on Tuesday.“The ADB is going to disburse between $500 million and $600 million in the current fiscal year - before June 30. Further, we are expecting to provide between $900 million and $1 billion each year, over the next three years, in the shape of project aid and programme loans,” said Liepach, while addressing a news conference to launch the Asian Development Outlook (ADO) report for 2014.

According to the report, Pakistan’s economy is heading towards improvement and net international reserves held by the central bank will jump from $5 billion dollars to $9 billion within a few months. The ADB expects inflows from privatisation proceeds, foreign donors, the auction of 3G/4G licences as well as other measures.

Flanked by ADB’s economist Farzana Noshab, Liepach said that the bank had revised upward its GDP growth projection for Pakistan from 3 percent to 3.4 percent for 2013-14. This growth rate is marginally slower than the rate in FY13.

However, cautioned Liepach, inflation would rise to nine percent in FY14 as a consequence of the expected increase in the gas and electricity tariffs.“Things are improving,” he said, citing reasons for appreciating the government policies. “But Pakistan’s economy willhave to consolidate in 2014 and 2015 by pursuing reforms. And then the stage will be set for higher growth trajectory in the range of six to seven percent per annum in the subsequent years that can dent poverty and bring prosperity in the lives of the people of Pakistan.”

Liepach said macroeconomic and security challenges continue to weigh on the economy. Agriculture is expected to be weaker due to a drop in cotton output, which will partly offset the improvements in sugarcane and rice production. Ongoing rains, however, may benefit the upcoming wheat crop, despite a reduction in the sowing area this year.

However, the ABD believes that the pickup in large scale manufacturing, which grew by 6.7 percent during the first six months of FY14 (three times the rate during the same period a year earlier), may compensate for the weaknesses of the agriculture sector.

The report expects larger and more reliable power supply, partly due to better load management as well as the increasing use of alternative fuels. This, in turn, is expected to help revive the production of food, fertilisers, chemicals, electronics, and leather products, while petroleum refinery output will continue its robust growth.

Textiles are expected to stage a recovery from their weak growth trajectory due to the benefits of the Generalised Scheme of Preferences Plus status granted by the European Union to Pakistan from January 2014.

According to the report, in the first eight months of FY14, inflation averaged 8.6 percent, reflecting the one-percent increase in the general sales tax rate to 17 percent, increases in power tariffs in August and October 2013 for commercial and bulk residential and industrial users, and significant currency depreciation against the major currencies.

Reflecting the shortages in the supply of perishable items and higher wheat prices, food inflation rose to 13 percent in November 2013 before receding to 7.2 percent in January 2014, making for an average of 9.3 percent over the eight-month period. Core inflation was relatively stable and averaged 8.4 percent during the period.

Further adjustments to electric and gas tariffs, as well as a levy to support gas infrastructure development, are expected to keep inflation high over the forecast period, said the report. Average consumer price inflation is projected at nine percent in FY14 and 9.2 percent in FY15.

The authors of the report believe that achieving fiscal sustainability will remain a major challenge for policymakers in Pakistan.The report said that the fiscal discipline had eroded in recent years with the persistent need to finance expanding energy sector subsidies, growing losses incurred by state-owned enterprises and high expenditures for security.

Pakistan’s tax-to-GDP ratio stood at 8.5 percent in FY13, which is one of the lowest in the region and reflects structural and administrative issues, notes the report. As a result, spending for badly needed infrastructure has relied largely on foreign inflows.

Additional spending requirements have emanated from consecutive natural disasters in the past few years, as well as from the need to establish social safety nets, added the report.

Higher fiscal deficits and very limited foreign inflows during the past two years increased significantly short-term domestic borrowing, causing interest payments to balloon.Moreover, high government borrowing from commercial banks also contributes to low private sector credit.

The report noted that the domestic portion of public debt rose sharply for the second year in a row, from 38 percent of GDP at the end of FY12 to 41.5 percent in FY13, to finance high fiscal deficits.

Foreign debt fell by 4.6 percent of GDP in FY13, mainly as International Monetary Fund’s debt was repaid. Total public debt (including external liabilities) at the end of FY13 amounted to 63.3 percent of GDP, exceeding the legal limit of 60 percent set under the Fiscal Responsibility Debt Limitation Act of 2005.

The federal government is implementing its fiscal framework under the IMF’s 3-year programme.According to the ADB report, the implementation on fiscal framework in the aftermath of 18th constitutional amendment and NFC (National Finance Commission) Award is challenging.

Efforts would be required from federal and provincial governments alike, as some taxes (notably on agriculture) fall under provincial administration and reforms would help enhance their own revenues.

Currently, over 90 percent of provincial revenues are transfers of federal shared taxes. As provinces have assumed a greater share of federal resources and spending responsibilities through devolution, their fiscal performance has become even more important in relation to the national fiscal outcomes.

A mechanism to ensure provincial fiscal discipline is likely to be a crucial consideration in the upcoming discussions for the 2015 award, the report concluded.

Nepra increases power tariff by Rs2.24 per unit

ISLAMABAD: The Nepra first announced an increase in power tariff by Rs2.24 per unit on Tuesday and shortly afterwards reduced it by 27 paisas. The decision will be applicable to all except the consumers of Karachi Electric Supply Company (KESC). However, the decision will also not be effective on the lifeline consumers who utilise only 50 units a month.

However, Nepra (National Electric Power Regulatory Authority) right after elapse of one hour decreased the power tariff by Re0.27 per unit showing it also takes care of masses.In the notification, Nepra says, the tariff has been raised because of the increase in fuel cost incurred for thermal generation in the month of January.

As per the notification, the electric power distribution companies will fleece additional amount of Rs12 billion from the electricity consumers in the month of April. The regulator says that the government produced the electricity in the month of January by using the costly fuel of furnace oil and high speed diesel.

However, one hour later, Nepra issued the notification about raise in tariff by Rs2.24 per unit, another order was issued and the tariff was slightly reduced by Re0.27 per unit for the electricity consumed in February during the hearing on petition of Central Power Purchasing Agency (CPPA).

The CPPA pleaded during the hearing that the factual fuel cost on electricity production in the month of February remained at Rs7.58 per unit against the reference fuel cost of Rs7.84 per unit. The total cost incurred for production of electricity in February remained at Rs44.49 billion. The electricity of 5.8680 billion units was sold out in February. No electricity was generated on high speed diesel in the month of February. However, cost of electricity based on coal in the month of February remained at Rs4.49 per unit and on furnace oil Rs15.96 per unit, on gas Rs4.33 per unit, on nuclear Rs1.33 per unit, and the cost for electricity imported from Iran remained at Rs10.55 per unit.

Gadani Power Park to be completed on war footing: Dar

ISLAMABAD: Federal Minister for Finance Senator Ishaq Dar on Sunday directed Economic Affair Division Secretary Nargis Sethi to complete the Gadani Power Park on war footing.

This has been disclosed by Economic Affairs Division (EAD) Secretary Nargis Sethi who is also Chief Executive Officer of the project of paramount importance here in a meeting with Finance Minister Senator Muhammad Ishaq Dar about issues pertaining to Gadani Power Park.

Nespak (National Engineering Services of Pakistan) is preparing PC-I for the whole project of 6,600MW Gadani Power Park in Balochistan that will also include construction of jetty and related infrastructure.

Nargis Sethi briefed the finance minister about the broad framework of the project. She informed that the site of the Park was ideal as it converged at the available industrial infrastructure at Hub and very close to Karachi.

She said that the Park would include ten coal-based power projects, ash disposal units, residential area, schools and play areas. She informed the finance minister that Nespak is preparing PC-I for the whole project which would include construction of jetty and related infrastructure.

The finance minister emphasised that as this was the flagship project of the PML-N government therefore it should be placed on fast track.

He said that ultra super technology should be used and detailed study from independent sources should be carried out. He said that the resource envelope was limited and they had to operate within the available resources.

He underlined that domestic private sector resources would be encouraged on BOT basis. He appreciated that this was the least cost energy generation model which would meet the short to medium term energy requirements.

The finance minister also directed the IPDF (infrastructure project development facility) to work in close collaboration with project director at Gadani project.

\He urged for putting on fast track Jamshoro coal fired project for which funding was already available from the Asian Development Bank (ADB).

South Africa can help Pakistan in coal, power industry: Envoy

KARACHI: High Commissioner of South Africa in Pakistan Mpenduio here on Thursday said his country can assist Pakistan in coal mining and coal-based power generation.
" We can provide Pakistan coal to gas technology for power generation to meet its energy challenges ," the High Commissioner said during his interactive session with members of Karachi Chamber of Commerce and Industry (KCCI) here. He was accompanied by Deputy Head of African mission in Karachi, Sarel van Zyl and its Honorary Consul General here, Ghulam Muhammad.
The High Commissioner said that during meetings with Punjab and Sindh Chief Ministers he had held detailed discussion on energy of Pakistan and offered his country's technical support especially in coal based power generation.
He informed the business community that three trade delegation from South Africa were scheduled to visit Pakistan before the end of this year and they would visit Karachi as well. He underlined the need for more exchange of business delegations and enhanced economic cooperation including entering into more joint ventures in different potential sectors on both sides. " We should benefit from our mutual potential trade and investment opportunities.
There is much scope in this economic relationship for improvement. It is my role and that of my High Commission to promote and enhance this relationship," he added. South African diplomat said the economic diplomacy has become the buzz word in modern diplomacy.
The mandate that he has received from his Government is to increase exports from South Africa to Pakistan and to promote South Africa as a safe environment for investments from Pakistan. Of course, the ultimate goal is to increase the level of total bilateral trade between our two friendly countries.
He said that a number of Pakistani companies have already invested successfully in various parts of South Africa and discussions on several new investment opportunities are in progress. South Africa is rich in mineral and other natural resources, and its government wishes to encourage foreign investors to set up their manufacturing plants there.
" We offer many incentives to investors and, more importantly, South Africa is regarded as a gateway to Africa," he remarked. South Africa also offers excellent transport facilities including ports and international airports for the exports of goods manufactured there. The High Commissioner informed the KCCI members that African continent is the second fastest growing region after Asia.
" We are ready to assist you with your inquiries regarding investment opportunities in South Africa, whatever sector you may wish to target," he said.
He said that the total trade between South Africa and Pakistan in 2012 figured $ 510 million. South Africa exports mainly iron and steel, aluminum and coal to Pakistan and imports cotton and yarn, textiles and leather goods from Pakistan. There are many other sectors that could be targeted for South African export to Pakistan. "We wish to invite members of the Karachi Chamber of Commerce and Industry to approach us in this matter", he said.
South Africa and Pakistan share a history dating back many years when Pakistan was supporting the liberation struggle against apartheid. " Let me use the opportunity to thank the Pakistani people for their support, which led to freedom for all South Africans in 1994," he said. South African diplomat said that he had already visited several chambers of commerce and industry in major cities of Pakistan to share information on trade and investment existing in both the countries.
South African Deputy Head of the mission here, Serel van Zyl also stressed on increased people to people contacts especially school groups of both the countries. Pakistani sports goods are popular in South Africa. To a query, he said the delay in issue of visa was already under discussion. To another query, he said that more work is needed to be done on both sides to decide about warehouses facility in South Africa for Pakistani exporters. " We want some more details from you in this regard," he said.
President KCCI Aamir Abdullah Zaki briefed the visiting diplomats about the role of Karachi Chamber in promoting trade and industry within and outside the country.

Sonam Kapoor: I don’t have power like Anushka and Deepika

According to the Press Trust of India Bollywood actress Sonam Kapoor expressed her admiration for Deepika Padukone and Anushka Sharma's work, saying they are doing "amazing" job.

The Press trust of India quoted Sonam as saying, “I think Deepika and Anushka do that (profit share). I am happy for my colleagues…they are doing fine work. I am proud of them…it is amazing. I don’t have the power (like them). Changes are coming in the industry and it is a good thing.”

The 28-year-old actress, who will next be seen in ‘Bewakoofiyaan’, admitted the portrayal of women in Bollywood is changing and directors are offering better and more meaning roles to them.

“Today in films the kind of roles and films are written for women is good. I am too getting good roles,” she added.

‘Bewakoofiyaan’ is romantic comedy which is being directed by Nupur Asthana and being produced by Aditya Chopra under the banner of Yash Raj Films. The film will feature Ayushmann Khurrana in the lead opposite Kapoor.

It is slated to release on March 14^th, 2014.

Germany’s Siemens gets $253mn Qatar power contract

DUBAI: Siemens has been awarded a $253 million contract by the Qatar General Electricity and Water Corporation (KAHRAMAA) to build nine substations, the German technology giant said on Sunday.
The contract, valued at 920 million Qatari riyals, is part of KAHRAMAA's Qatar Power Transmission System Expansion project, which aims to improve supply stability in the Qatari capital and its suburbs.
"This project will contribute to improving the power infrastructure in and around Doha," Bernhard Fonseka, head of Siemens operations in Qatar, said in a statement.
The project is expected to be completed within 26 months.
Qatar bought a 2.4 billion euro ($3.1 billion) stake in Siemens, Germany's second most valuable company, in 2012.
Qatar's wealth, mostly generated from gas exports, has spurred a population and construction boom over the last decade. The tiny Gulf state's plan to host the World Cup soccer competition in 2022 is expected to put further strain on Doha's power supplies.