AEDB, PPIB: PM for expediting legislative process for merger

ISLAMABAD: Prime Minister Imran Khan has directed Power Division to expedite legislative process for merger of Alternative Energy Development Board (AEDB) with Private Power & Infrastructure Board (PPIB), official sources told Business Recorder.

On July, 13, 2021, Power Division briefed the Cabinet that the Alternative Energy Development Board was a statutory organisation established under Alternative Energy Development Board Act, 2010. The appointment of Chief Executive Officer (CEO) of AEDB was governed under Section 5 of the AEDB Act, 2010.

It was stated that after the acceptance of the resignation tendered by Dr Rana Abdul Jabbar as the CEO, AEDB and approval of the advertisement by the Federal Cabinet in its meeting held on Jan 4, 2021, the post of CEO, AEDB was advertised in the national dailies on Jan 14, 2021. The Additional Charge for the post of CEO, AEDB was assigned to Shah Jahan Mirza, MD PPIB for a period of three months which expired on June 12, 2021. The process of recruitment of the regular CEO, AEDB had also been completed.

In the meanwhile, Power Division moved a summary on the proposed merger of AEDB with PPIB to the Cabinet Committee on Energy for approval of the concept. The CCoE, in its meeting held on June 18, 2021, had approved the concept. The Power Division had drafted the requisite legal changes, which would be submitted to the appropriate fora (CCLC, Cabinet, Parliament) in the coming days. As such the case of the merger was at an advanced stage. In view of the process on merger of AEDB with PPIB, appointment of the CEO AEDB from open market would not be feasible.

Power Division proposed that additional charge for the post of CEO, AEDB may be assigned to Shah Jahan Mirza, MD PPIB till the merger of AEDB with PPIB. Both the organisations dealing with power sector projects are under the administrative control of Power Division.

AEDB is tasked with the same functions as PPIB, except that its scope is limited to alternative energy. The PPIB has been in existence since 1994 as a one window facilitation centre for investors in the energy sector. The establishment of AEDB has therefore created an anomaly in the system because it has also begun operating as a one window facility for one segment of the sector, whereas in terms of its preamble its primary function should have been researched and development of the alternate energy sector.

The sources said, it was directed, by the Prime Minister, that the legislative process for merger of AEDB with PPIB shall be expedited by Power Division.

On June, 17, 2021, during the ensuing discussion in the CCoE, Chairman Nepra Tauseef H Farooqi stated that it would be rather advisable to merge PPIB into AEDB in order to highlight focus of the government on the renewable energy regime. Further, PPIB has more technical expertise with reference to renewable energy plants.

The Cabinet of Nawaz Sharif had approved merger of PPIB and AEDB on May 26, 2017 aimed at providing one window facility to the power sector investors. However, the process has not been completed even after passage of four years.

Copyright Business Recorder, 2021