ISLAMABAD: The Power Division has refused to share details of negotiations with Chinese power sector companies publicly to review their contracts on the analogy of other independent power producers (IPPs) due to sensitivity of the issue.
This stance was conveyed by Additional Secretary, Power Division, Waseem Mukhtar at a meeting of Senate Standing Committee on Power, which met under the chairmanship of Senator Saif Ullah Abro.
"Separate negotiations with Chinese companies are ongoing off and on, but any change of law or policy cannot apply to them. If it is done, Chinese companies which were given sovereign guarantees have the option of international arbitration and the consequence of international arbitration have never been good for Pakistan," he added.
Waseem Mukhtar requested the Committee to discuss CPEC projects in-camera as Chinese were already showing serious concern due to public comments on CPEC projects, adding that Chinese companies have always stated that they established all projects under the law and available policies of the government.
The Committee decided to convene an in-camera meeting on CPEC projects to discuss in detail. In addition, the Committee also sought details of shareholders of IPPs aimed at knowing the actual investors behind these projects.
Ongoing power projects: China has adopted ‘go slow’ policy after ‘unjustified’ criticism?
Taking part in discussion on the power projects, Senator Saifulah Sarwar Khan Nyazee, said that since nuclear projects are a health hazard, the affected areas be given special compensation as was done in hydropower projects. He also cited the example of Sahiwal coal power project, which according to him has increased pollution in the area.
The Committee directed Chairman NEPRA, Tauseef H. Farooqi, to prepare a policy paper within a month on nuclear power plants.
He was criticised for not taking his Authority members on board due to which his wings have been clipped.
Sensing that discussion in the Committee can take another turn, he exhibited a reluctance to comment on the issue publicly and promised Senator Talha Mahmood that he would share the report with him.
Chairman NEPRA also briefed the Committee that the country has saved $3.780 billion during the last four years due to fuel cost of coal power plants established under CPEC but at the same time the management of Genco Holding Company Limited (GHCL) has not set up its second unit of 747 MW Guddu power plant.
The committee held details discussions on rehabilitation of government sector power plants with RLNG after which their tariff will come down from Rs 29 per unit to Rs 18 or Rs 19 per unit.
Copyright Business Recorder, 2021
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