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There are no two opinions on that this country faces a serious electricity deficit, and that hydel power being the cheaper energy as compared to thermal and nuclear energy - which entails additional problems related to international concerns - it needs to be developed to its full potential.
Another strong argument in favour of hydel power is the widespread availability of water, much of which remains unutilised and goes to waste as it flows into the sea via the river system. Yet the government seems to have done little else than to keep all its efforts, albeit unsuccessfully, focussed on achieving a political consensus for the construction of the controversial mega hydel power project at Kalabagh.
That comes out clearly from an aide memoire prepared by the World Bank in consultation with the government as part of a power sector investment programme. Made public in Islamabad last Wednesday, the document says that as much as 80 percent of the country's economically viable hydropower potential has not yet been developed.
Experts put that potential at 47,000 MW whereas at present only 6083 MW electricity (the figure includes an extra 1500 MW generated this year) is available from this source, meeting 34 percent of the overall demand. The bulk of electricity, supply 64 percent, comes from thermal power stations.
Part of the reason this sector has remained underdeveloped is to do with the disputes that are common between upper and lower riparians, the latter being traditionally suspicious of the former's intentions. As a matter of fact, an inter-provincial controversy is currently going on over water rights as IRSA has determined the present water shortage to be 17 percent of the required level. The issue, of course, calls for a well-thought out strategy to address the concerns of all stakeholders.
The WB document, though, has mentioned some other unjustifiable reasons that account for low private sector investments in hydel power generation projects. For instance, it notes that although several proposals for hydel power stations have been identified, the number of pre-feasibility and feasibility studies is relatively small, and reliable data is sparse on the projects that have been offered for WB investments.
More specifically, it says, the Private Power and Infrastructure Development Board is currently promoting seven hydel power projects without carrying out the necessary feasibility studies. To say the least, this state of affairs shows lack of professionalism; in fact, it betrays a certain kind of naivete on the part of the water and power authorities to expect investors to put their money into the sector without knowing about the risks and issues involved.
Indeed, the risks are many. As the WB document points out, there are a host of issues that are specific to hydel power projects such as geological and hydrological risks, water riparian rights, environmental and social issues, multi-user nature of water reservoirs, pricing of hydel power and project financing.
Now that it has been sufficiently chastised by the WB, the Ministry of Water and Power is reported to have requested the donor organisation for technical help to address all these issues so as to develop a coherent strategy to attract public and private investments to hydel power projects.
In making the request it has the ministry may have found an easy way out for itself, but in having to do so it has displayed a disappointing level of competence.

Copyright Business Recorder, 2005

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