ISLAMABAD: National Assembly on Wednesday passed legislation for making Private Power and Infrastructure Board a statutory institution with the objective to promote, encourage and facilitate private investment in the power sector. The bill, moved by Minister for Water and Power, Syed Naveed Qamar, was opposed only by the treasury member Syed Zafar Ali Shah for the reason that it might encroach on natural resources which the provincial government may want to utilise by themselves.
However, Shah did not insisted after a statement by the minister that provincial governments have been taken on-board in this regard by the Council of Common Interest. The minister said that the law, before being brought to the parliament, was presented before the Cabinet for approval and subsequently was discussed by the CCI, attended by the chief ministers of all the provinces and the Standing Committee of Parliament.
Qamar pointed out that no other bill in the history of the country was subject to such scrutiny and PPIB even, though a federal body, but majority of its members would be nominated by the provinces with two representatives from every province on the board. Subsequently, "Private Power and Infrastructure Board Bill 2011", as passed by the Senate, has been approved by National Assembly.
According to the statement of objects and reasons, the Private Power and Infrastructure Board was created under 1994 power-policy to act as a "one window" operation for attracting and facilitating private investment in power generation and allied infrastructure projects. It was felt utmost necessity to make PPIB a statutory institution through an act of the Parliament as it is expected that the draft statue will inspire private sector and public sector confidence in the authority, credibility, efficiency and permanence of PPIB. The donor agencies have time and again mentioned that PPIB should have a legal status. Asian Development Bank even made the statutory status of the board as one of the conditions of its multi-tranche financing facility extended to the government.
As regards litigation cases, Supreme Court of Pakistan has also shown its serious 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 of Pakistan. Large-scale reforms for private sector participation in power generation and related infrastructure are taking place. The legal status of PPIB has already been called in question in litigation. In order to avoid legal complications, it is imperative to give PPIB a legal status.
There is growing realisation in the power sector that for the envisioned objectives to promote, encourage and facilitate investment in private sector and for that matter to implement the Power Policy, a permanent statutory body must be created to fill in the current legal and administrative vacuum that is bringing about 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. Therefore, PPIB will be required to play a more proactive role in the power sector which is being transformed into a competitive power market in Pakistan, concluded the statement of objects and reasons.