AEDB termed white elephant: Pervez warns of stern action against corrupt officials

The Minister for Water and Power, Pervez Ashraf, on Wednesday announced here that he would take stern action against those officials of the Alternative Energy Development Board (AEDB) who pocketed public money with great ease. The EADB has materialised a mere 6 MW wind farm in Jhimpir (Sindh) after nine years of its establishment.
The organisation spent a huge amount from the national exchequer on salaries of its employees who reached executive cadre within a year. Energy sector experts have termed the EADB as a white elephant, which has consumed billions of rupees doing nothing concrete mentionable.
The Minister, who had ordered a special audit to investigate financial bungling, had reportedly warned them in several meetings that they had to face the consequences. "Special audit report is in final stages, and I will not spare anyone who plundered the national exchequer," said the Minister at a press conference convened to announce that Prime Minister Yousaf Raza Gilani would inaugurate the 6 MW wind power project in Sindh, which has been set up by a Turkish company, Zorlu Enerji. The project will later on be expanded to 50 MW.
When a question was raised by Business Recorder regarding financial irregularities in the AEDB, some of them, who were sitting on the sidelines, were looking perturbed. The Minister, however, defended the incumbent EADB Chairman, saying that "if you have any information about any specific person, let me know".
Sources in the Ministry of Water and Power said that Ashraf had also warned the incumbent Chairman of the AEDB to desist from financial wrongdoings. The Minister said that the government has decided to disconnect, without hesitation, electricity of consumers found involved in theft.
He said that the gap between power demand and supply had reduced to 1474 MW on April 15, 2009 against the same date of last year, when it was 3112 MW. Ashraf once again repeated his claim that load shedding would end in December 2009 as 900 MW more power would be added to the NTDC system, whereas 3000-4000 MW would materialise in December.
He said that Karachi Electric Supply Corporation (KESC) is a permanent headache for the present government as the buyers neither invested in the system as per the agreement nor signed Implementation Agreement (IA). "Now they have agreed to invest $361 million, besides adding 400 MW more power in the system," he added.
The Minister said that Nepra has awarded 12.1057 cents per kWh tariff which, according to him, "is cheaper" than the electricity generated by thermal sources. Mentioning progress in the wind sector, Ashraf said that potential wind corridors were being studied in the country. Pakistan has theoretical wind energy potential of 346,000 MW; of which 50,000 MW, in Gharo-Keti Bandar corridor, renders excellent opportunities for private sector developers. He said that to support development of wind energy sector in the country, indigenous fabrication of wind towers has also been started.
He said that Pakistan was offering good incentives to attract investors such as providing wind risk; land, attractive tariff, waiver of import duties on equipment, zero sales tax income tax/withholding tax, repatriation of equity along with dividends, permission to issue corporate registered bonds; provision of net metering, banking of electricity, wheeling, and grid spillover, and a minimum of 15 percent return on equity (RoE) guaranteed as per Nepra guidelines He said that new renewable energy policy was also in final stages, which would be announced after approval of the government.