Private Power Infrastructure Board, whose administration did nothing to add even a single unit to the national system for the last several years, is now seeking legal status with the backing of Asian Development Bank, well-placed official sources told Business Recorder.
At present, technically the Board, headed by an official who fled the country after signing controversial agreements with the IPPs during the last government of Pakistan Peoples Party, owes its origin to a mere notification which certainly does provide the organisation a symbolic significance, but without any semblance of authority, the sources added.
"If PPIB is to be a meaningful one-window facility for IPPs, it may be vested with real authority which cannot be disregarded by other stakeholders," the sources added.
The top management of the organisation is of the view that the most credible means of accomplishing this, as recognised by the ministry of law earlier, is to formalise and regularise it by making it a statutory body with appropriate powers, the sources continued.
Some of the reasons, according to sources, for enacting PPIB as statutory body are as follows: 1) It is expected that the draft statute will build private and public sector confidence in the authority, credibility, efficiency and permanence of PPIB.
2) Donor agencies while commending the role, achievements of PPIB have time and again mentioned that PPIB should have a legal status.
The Asian Development Bank even made the "statutory status" of PPIB as one of the conditions of its multitranche financing facility extended to the GoP.
The sources said that in litigation cases the Supreme Court of Pakistan has also shown its concern as to PPIB's legal status and its powers to sue and be sued in its own name and for and on behalf of President.
They further said that PPIB signs Implementation Agreements and provides guarantees on behalf of the GoP, worth millions.
The management of PPIB claims that large-scale reforms for private sector participation in power generation and related infrastructure are taking place and its legal status has already been called in question in litigation, the sources said, adding that legal status for the organisation was imperative to avoid legal complications.
Backing the proposal, PPIB was of the view that the former prime minister gave directives that PPIB should have a more formal legal structure, the sources added.
They said that there was growing realisation in power sector that for the envisioned objectives to promote, encourage and facilitate private investment in power sector and for that matter to implement the power policy, a permanent statutory body must be created to flit in the current legal and administrative vacuum that is source of various technical, legal and administrative issues.
"There is also a shift in emphasis from thermal to hydel and coal-based power generation and private investors are already showing interest in undertaking such projects," the sources maintained.
PPIB has recommended that an Ordinance be promulgated, titled "an Ordinance to provide for the establishment of the Federal Private Power Board," to which the PFIB chairman/the minister for water and power had agreed.