News
Sunday, August 25, 2013
PML-N mulls privatising two incomplete power projects* Documents submitted in SC reveal Neelum Jhelum, Nandipure Thermal power projects could be privatised in the future
Staff Report
ISLAMABAD: The PML-N’s government has expressed its intention to privatise two incomplete power projects – Neelum Jhelum Hydropower Project and Nandipure Thermal Power Project.
According to documents submitted in the Supreme Court (SC) in the coal-fired Lakhra Power Plant (LPP) lease agreement case, Prime Minister Nawaz Sharif has endorsed the Ministry for Water and Power’s two-page summary regarding privatisation of two most efficient and financially sound power sector entities.
The court was told that the federal government had endorsed privatisation of the most efficient and financially sound power sector entities such as Islamabad Electric Supply Company (IESCO) and Faisalabad Electric Supply Company (FESCO) in the near future.
“As per policy of the government, in order to introduce efficiency in the public-owned entities, a proposal is being forward to privatise two GENCOs and two DISCOs. The DISCOs include Faisalabad Electric Supply Company (FESCO) and Islamabad Electric Supply Company (IESCO),” acting Water and Power Secretary Saifullah Chatta said in his note, which was submitted to the PM. It also states that privatisation of FESCO and IESCO had already been initiated in the past by Privatisation Commission.
It is to be noted that the PM has already endorsed privatisation of Muzaffargah Thermal Power Station and coal-fired Lakhra Power Project.
The ministry’s summary also claimed that the future initiatives on unloading the public sector from loss making or inefficient entities will also be strengthened with the current procedure.
The court was also told that other distribution power companies (DISCOs) and generation power companies (GENCOs) could also be brought into this initiative in the future in addition to entities like Neelum Jhelum Company and Nandipure Thermal Power Project. The prime minister had visited the Neelum Jhelum Company project site last month and directed authorities to expedite construction work on the Rs 274.88 billion project in order to make it functional by 2014-15.
Courtesy www.dailytimes.com.pk