US willing to help in Rental Power Projects

[Naveed Yaseen]

MUSHTAQ GHUMMAN
ISLAMABAD (October 25 2009): The United States has expressed dissatisfaction over investment climate in Pakistan, but assured its full support in dealing with the energy crisis through short-term solutions, including the much criticised rental power plants (RPPs) and the fast track power projects, initiated by the American investors, well-informed sources told Business Recorder on Saturday.

This was the outcome of the two-day parleys between Pakistan and the US team meeting referred to as Pakistan-US bilateral energy dialogue, which commenced on Friday, and was held at the Prime Minister's Secretariat.

Pakistan team was headed by Minister for Water and Power Raja Parvaiz Ashraf, while the US delegation comprised US Department of State's team, including International Energy Co-ordinator David Goldwyn, Economic Advisor to the Special Envoy for Afghanistan and Pakistan Mary Beth Goodman, Senior Economic Advisor Robert Deutsch and other officials from the US Department of Energy, and Overseas Private Investment Corporation (OPIC).

The purpose of sending a team to Islamabad was to immediately assess the energy needs which, it was feared, was contributing to political instability, said a power sector entrepreneur, who telephoned this scribe from New York on Saturday.

"The US delegation confirmed its intent to assist Pakistan in addressing the hardships experienced by all Pakistanis due to energy shortfalls. The United States appreciated Pakistan's proposals to address the short-term energy shortfalls and pledges to assist in their implementation," says an official statement. According to official sources, involved in co-ordination of the meeting, the US has asked the government to "do more" to stabilise the energy sector and its own political position.

Source said that in the short-term, the US wanted to assist public and private sector energy projects, that could be implemented on a fast-track basis to achieve financial close either through equity placement or through confirmation of banking instruments that could allow these projects to raise cheaper debt financing in foreign markets.

With specific attention on ways for Pakistan to move beyond its energy crisis, the delegation reviewed the full range of energy policies. During the two days, the talks also focused on ways to transform Pakistan's energy economy on a sustainable long-term basis.

They discussed measures needed to craft a climate conducive to attract private capital investments, the official statement added. The Pakistani delegation presented the government's integrated vision for meeting the energy needs of a growing economy through development of domestic resources, including oil, gas, coal, hydro and renewable energy. They also presented operational, efficiency and organisational improvements that would allow the production and delivery of more reliable energy supplies, as well as the more efficient use of imported energy.

The US delegation reiterated the interest of numerous US private sector firms in investing in energy projects in Pakistan. The two sides agreed that they would work jointly to ensure progress towards a balanced energy market in Pakistan and to review specific project proposals for increased energy capacity. They agreed to meet again in the spring of 2010.

Besides, the Ministries of Water and Power, Petroleum and Natural Resources, Finance, Privatisation, Investment and the Planning Commission, representatives of Water and Power Development Authority (Wapda), Pakistan Electric Power Company (Pepco), Alternative Energy Development Board (AEDB), Private Power and Infrastructure Board (PPIB), and the Sindh Thar Coal and Energy Board participated in the meeting. US Departments of State, Energy and Commerce, the National Security Council, USAID, the US Trade and Development Agency and the Federal Energy Regulatory Commission represented the United States.

http://www.brecorder.com/index.php?id=97...=&supDate=