The government on Friday told the National Assembly that Pakistan Electric Power Company (Pepco) is facing Rs 400 billion circular debt. The Minister for Water and Power Raja Pervez Ashraf while responding to a question said that Pepco owes Rs 165 billion and has to receive Rs 265 billion. He disclosed that Pepco owes Hubco Rs 35 billion.
"We took over this debt from the previous government," said the minister as he faced anger and volley of questions for failure to ensure power supply despite massive increase in electricity charges. He maintained that the government has established a committee headed by Prime Minister Syed Yousuf Raza Gilani that made certain recommendations to overcome this circular debt.
The minister avoided a question by PML-N member Shahid Khaqan Abbasi, saying he did not have the data to answer how much the government was paying per unit to Hubco. "I don't have the agreement with me right now, the minister sought time assuring the House that he would inform the member after consulting the data.
Ashraf told the House that the government has started a pilot project to generate electricity in collaboration with a Turkish company. In a written reply, he said that the private sector is allowed to set up power plants as IPPs under the Private Power Policy, 2002.
Private Power and Infrastructure Board (PPIB) is currently processing 49 multiple fuel projects with a cumulative capacity of 12,363MW throughout the country in private sector. Raja Pervaiz Ashraf said that the construction of Gomal Zam Dam Project has been started since August 2007 that would be completed in October 2010. The overall physical progress until November 2008 is 25.9 percent against target of 30.8 percent.
"The total cost of the project as per approved PC-1 is Rs 12,829 million while the total expenditure incurred on the project up to November 2008 is Rs 3412 million," the minister said. He said that the expenditure incurred on the project during the current financial year is Rs 470 million against an allocation of Rs 2000 million. He said that the total cost of electricity being provided to Fata on monthly basis is Rs 1.5 billion.