Prime Minister Shaukat Aziz has allowed the Water and Power Development Authority (Wapda) to set up 700-800MW capacity thermal power stations in Punjab to bridge demand and supply gap.
In August last year, when Wapda Chairman Tariq Hameed placed the same proposal before the prime minister, it was turned down on the grounds that no thermal power project would be set up in public sector in future, sources in the Private Power and Infrastructure Board (PPIB) told Business Recorder.
"Power is urgently needed in Gepco and Lesco areas and the utility cannot afford projects on ICB basis if we have to bring additional electricity in these two regions," the sources quoted Wapda chief as saying, in his presentation last year.
The prime minister, however, at a meeting on Thursday, directed the utility to use all possible options to increase power generation, including setting up new power projects and improving in its system to meet the growing energy requirements due to high economic growth achieved during the last few years.
Sources said some of the federal ministers also expressed their serious concern over the prevailing power crisis in a recent cabinet meeting, saying the present situation could go against them in the forthcoming general elections.
The prime minister took several important decisions for power production on fast track basis and directed Petroleum and Natural Resources Minister Aman Ullah Jadoon to make available gas for thermal power projects on priority basis.
The PPIB managing director, in his presentation, said the country would have an additional capacity of 2000 MW by the end of 2008, generated by the Independent Power Producers (IPPs). This will include power produced by capacity expansion from existing IPPs, capacity creation from new IPPs and the power produced by leading business houses, he added.
Sources said Prime Minister Shaukat Aziz was not happy with the working of the PPIB, which was ultimately resulting in delay of projects, adding that President Pervez Musharraf had also expressed annoyance a couple of days earlier at a meeting, saying that nothing has been done practically to meet future power requirements.
The water and power ministry, which is being blamed for power crisis in the country, has been asked to prepare a comprehensive plan to meet future power needs, says a press release issued by the Prime Minister House.
The prime minister directed the Wapda chief to interact with the Alternative Energy Development Board (AEDB) to look into the possibilities of setting up micro-hydel projects.
He said that ensuring security of water, energy and food are among the top priorities of the government. There is a surge in the electricity demand due mainly to the high growth rates and the government is consistently monitoring the power situation in order to maintain the growth momentum and provide uninterrupted electricity supply to domestic and industrial sectors.
The prime minister said over the years the middle class has expanded, the electrification of rural areas has increased and the irrigation and industrial energy demand is at an all-time high necessitating more electricity generation. The government is taking all necessary steps to meet the growing energy demand by creating adequate power generation capacity, he added.
The meeting was attended among others by Petroleum and Natural Resources Minister Amanullah Khan Jadoon, PM's Adviser on finance Dr Salman Shah and senior officials.
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