ISLAMABAD: The federal government on Tuesday de-notified Syed Raghib Abbas Shah, the Chairman of Wapda, as the Coordinator for the power sector after the approval of the caretaker Prime Minister, Mir Hazar Khan Khoso. Officials told Business Recorder that International Financial Institutions (IFCs) took strong exception to the decision to appoint the Chairman Wapda as the power sector's coordinator and threatened to suspend financial assistance for the sector.
Business Recorder broke this story in its April 5, 2013 issue. Last month, the Ministry of Water and Power issued a notification to appoint the Chairman Wapda as the power sector coordinator, after getting approval from the then Prime Minister Raja Pervez Ashraf, giving him control of 16 corporate power companies.
Asian Development Bank (ADB) and World Bank reacted sharply against the decision, terming it contrary to power sector reforms initiated two decades ago. "The competent authority has been pleased to designate the chairman, Wapda, to act as overall co-ordinator for the power sector to enhance the administration and co-ordination. Chief executive officers of Discos (10 distribution companies) and Gencos (three generation companies), NTDC/CPPA and Pepco will report directly to him for co-ordination purpose," said a notification issued by the Ministry of Water and Power during the third week of March.
Donors tried to persuade the recently sacked Additional Secretary In-charge Rai Sikandar that the decision to appoint the Chairman Wapda as the power sector coordinator was against the spirit of power sector reforms.
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