Minister for Water and Power Khawaja Muahammad Asif Thursday told a parliamentary panel that K-Electric management is considering selling shares to a South Korean company. Briefing National Assembly's Standing Committee on Water and Power headed by Arshad Leghari MNA, the minister said the government already has reservations over the sell-off of shares by KESC back in 2005 and 2009.
He was of the view that the management of K-Electric invests some amount on entity and sells shares at double price to another party, adding K-Electric is purchasing electricity at cheap rates but selling it on higher prices to consumers. "K-Electric is using furnace oil after reduction of natural gas supply but getting price differential from federal government," Khawaja Asif added.
He further stated that if federal government takes action against K-Electric, courts issue stay orders. During the discussion, Asif said that KPK government has sent a list of 11 small dams, adding the federal government will extend all possible support towards completion of these projects. Chief Executive Officer (CEO) Neelum Jhelum Hydropower Project (NJHPP) Lieutenant General Muhammad Zubair (Retd) briefed the committee about 969 MW Neelum Jhelum Hydropower Project (NJHHP). Talking to Business Recorder, he expressed concerns that the project might hit snags if funds are not arranged immediately by the government. The project is scheduled to be completed by the end of next year.
He said that funds are not available for the project and if the present situation persists, the project will not be completed in time. According to him, the project is facing a financial gap of $475 million and various avenues are being explored by the government. "Negotiations with Exim Bank China are in process for an additional financing and a request has been made by EAD for $200 million. The Kuwait Fund for Arab Economic Development Delegation is visiting Islamabad/ EAD/Project from 14-19 December 2014 for an additional funding of $32 million. This amount shall be utilised towards completion of dam site and switch yard," he continued.
The CEO NJHHP said that 68 per cent development work on the project has been completed while work on the tunnel has achieved 78 percent completion. The total cost of the project is Rs 136 billion and Rs 3 billion is needed every month to continue the development work.
He informed the committee that the government has collected Rs 55 billion from electricity consumers so far through a levy of surcharge of 10 paisa on each unit. MNAs Sardar Mansab Ali Dogar, Rana Afzaal Hussain, Pir Muhammad Aslam Bodla, Syed Ghulam Mustafa Shah, Syed Waseem Hussain, Maulana Muhammad Gohar Shah, Sahibzada Muhammad Yaqub and Khawaja Muhammad Asif, Minister for Water and Power were present in the meeting.
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