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Former minister of Water and Power Raja Pervez Ashraf told Supreme Court on Thursday that contracts of Rental Power Projects were awarded to meet growing power shortages as it was the only short-term measure to provide some relief to consumers facing long hours of loadshedding.
He added: "I am not a person who minces words - my intentions were to provide early relief to consumers and keep the industrial wheel moving. However, if the court desires, it may depute a team to check the causes of delay in operationalisation of RPPs". A division bench of the Supreme Court comprising Chief Justice Iftikhar Muhammad Chaudhry and Justice Khilji Arif Hussain has been hearing a suo motu and identical petitions filed by federal minister for Housing and Works Faisal Saleh Hayat and PML (N) MNA Khawaja Asif against RPPs.
The former minister apprised the bench that the energy-mix became imbalanced during the present regime, which generated a crisis of loadshedding. The PPP government, therefore, decided to devise a comprehensive policy for RPPs. He added that he was least interested in the RPPs but the former cabinet have given approval to the projects.
He also quoted the World Bank concerns over substantial amount of subsidy. It had underscored the need for working on long-term projects for addressing the issue of loadshedding. But it was not possible at the time so the government decided to speed up RPPs in Pakistan, he added. He told the bench that growing need of the electricity in Pakistan would touch 108,000 MW mark by 2030. Hence, the need for appropriate planning.
"Once I was travelling from Islamabad to Karachi when plane's cockpit crew switched off lights and the passengers gave me a shocking look, saying 'Raja Sahib loadshedding has now extended its tentacles to aeroplanes as well," Raja told the bench.
Raja added that Federal Minister Faisal Saleh Hayet harboured a personal grudge against him. "That is why he has been turning the RPPs matter into an issue everywhere." He said that Hayat was maligning him because he strongly criticised him when he (Hayat) joined the Musharraf's government in 2002 after winning election from the platform of Pakistan People's Party.
He contended that he needed court's protection and justice regarding the matter because he had been ridiculed everywhere because of the RPPs matter. Raja also mentioned that there was no mala fide intention behind the instalment of RPPs as he continued a policy which was originally formed by the previous regime. He agreed that RPPs were producing electricity with high tariff, but there was no alternative to overcome the power shortage in short period. He said he had also started different projects of hydel, solar and coal to overcome the energy crisis.
The former minister blamed that previous regimes did not work on the power sector and IPPs, which were introduced by Pakistan People's Party in 1994, had been heavily criticised by Pakistan Muslim League-N government, which used different measures to discourage the policy. Rejecting the allegations, he declared he had no property or account in any foreign country.
Talking about the question of transparency in relation to RPPs, an emotionally-charged Ashraf said that no bidder had objected to an award of contract. "I just approved the RPPs to produce energy according to the agreement and if they fail we would impose a heavy fine on them," he added.
He also said that the then President, Pervez Musharraf, had inaugurated Bhasha Dam which was a ruse as previous regime had done nothing regarding the construction of the dam, but the incumbent government initiated the work on this dam. Raja said that most of the countries were facing immense shortages of energy and that they were relying on RPPs.
Earlier, Chief Justice observed that no one had taken care of consumers but all were busy in protecting interests of the parties. The CJP observed that the nation had given an opportunity to the present democratic government to solve their problems but people at the helm of affairs were not delivering. The CJP said the court would also involve Federal Board of Revenue (FBR) on the issue of customs duty levied on the import of RPPs, which caused a great loss to the national kitty.
"What kind of minister was your client, who did not know what was happening in his ministry?" the CJP asked Sajjad. Sajjad said that his client had tried to overcome the power shortage but he failed in his attempt. He said although the former minister had initiated the summary regarding the RPPs, it was the decision of Prime Minister, Planning Division, and Petroleum and Finance ministries. The hearing was adjourned till November 28.

Copyright Business Recorder, 2011

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