Task force not satisfied with PPIB performance

28 Jul, 2007

The task force on energy on Friday expressed dissatisfaction over Private Power Infrastructure Board (PPIB) performance and asked the Ministry of Water and Power to come up in the next meeting with a comprehensive plan for power generation on fast track basis to overcome its worsening crisis.
The power crisis and role of each concerned department came under discussion during the task force meeting that lasted for more than two hours here.
Sources said the task force noted with concern that PPIB could not play an effective role to materialise the new projects for power generation that fuelled the power crisis during the last one and half years. The Karachi Electric Supply Company (KESC) and Water and Power Development Authority (Wapda) chiefs were asked to improve performance of their organisations for electricity distribution, besides encouraging public and private sector investment for power generation.
PPIB's role is being questioned for months at different forums with respect to power generation and bringing new projects on line. It has been noted at the highest level that PPIB is not delivering up to the government expectations and Ministry of Water and Power should look into its affairs. But it never happened. Instead, the ministry entered into a row with Wapda over some petty issues. This took the ministry's working relationship with Wapda to the lowest ebb during the last days of Ashfaque Mahmood's tenure as secretary. His transfer and Ismael Qureshi's appointment as Water and Power Secretary has brought relief to Wapda.
Sources said the task force was informed that the Ministry of Water and Power was closely working now with Wapda and KESC to make sure that they push forward their strategy to cut down losses and improve distribution system to service better to the consumers.
The meeting also discussed LPG pricing mechanism in depth and decided to continue with CP-based formula with some minor changes. The Oil and Gas Regulatory Authority (Ogra) was asked to keep on reviewing LPG prices on monthly basis as was directed by the Economic Co-ordination Committee (ECC) of the Cabinet However, it will take FOB CP-price of Saudi Arabia of the same month for review and fixing LPG prices for the domestic producers.
The task force disagreed with the Ministry of Petroleum for LPG export. It noted that LPG export was not a good option at this point in time when Pakistan meets a sizeable share of its requirement from imports.

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