US says yes to thermal, no to hydro-generation in Pakistan

[Naveed Yaseen]

By Khalid Mustafa
ISLAMABAD: The United States has refused to bail out Pakistan from the ongoing energy crisis by extending any help in augmenting its hydro-generation capacity, but has shown interest in the rehabilitation of some main thermal power plants to provide some relief on short-term basis.

Presently, hydro generation constitutes 30 per cent of the total capacity in Pakistan with 70 per cent power being generated through exorbitantly expensive power plants that are run on imported oil.

The US indicated its intentions during the recent visit of US Special Representative for Pakistan and Afghanistan Richard C Holbrooke in a meeting with relevant officials of the water and power ministry, Wapda, KESC and Pakistan Electric Power Company (Pepco), a senior official told The News.

Talking to The News, Water and Power Secretary Shahid Rafi said a joint task force comprising US and Pakistani officials on energy has been established and right now the US officials were in the process of assessing areas in which the US could help.

He, however, refused to divulge any information pertaining to interaction between the US delegation headed by Holbrooke and Pakistani authorities, saying he was too busy and had to rush to attend another urgent meeting.

The senior official told The News the US wanted to rehabilitate the existing thermal power plants, which include Guddu, Jamshoro, Kotri, Muzaffargarh and Faisalabad. If rehabilitated, these plants would add another 500-600MW of electricity, he added.

The official, who was also part of the negotiations, went on to say that, “The US will extend about $60 million in the first six months with regard to rehabilitation of some major thermal power plants”.

Narrating details of Holbrooke-KESC top management meeting in Karachi, he disclosed: “Holbrooke during the said meeting in an interaction with Naveed Ismael, Chief Executive of the Karachi Electric Supply Company, snubbed top management of the KESC when the US representative came to know that transmission and distribution system of the privatised entity requires only $60 million investment, saying this amount is too small and the company that has taken over KESC should invest on their own and don’t expect US to come forward and invest in T&D system.”

To a question as to why the US did not show interest in upgrading the capacity of Pakistan in hydro generation, the official said Wapda Chairman Shakeel Durrani was prepared to present some important projects in this regard to the Americans, which included up-gradation of installed equipment at Mangla, Warsak and construction of Bara dam. But he said, prior to the meeting the chairman was advised by the secretary general’s office to only concentrate on thermal plants as the Americans had already indicated that they were not interested in hydro-generation projects”, which incidentally are the cheaper energy source.

In addition, the US has been asked to come forward and help upgrade the transmission and distribution system in war-wretched areas of Swat and Malakand as this will improve the supply of electricity. However, when contacted Water and Power Additional Secretary and spokesman for the ministry Zarar Aslam admitted the US did not take interest in upgrading the capacity of Pakistan in hydro generation.

When asked what were the terms of reference (ToRs) of the joint task force on energy the official said this task force would first make a national power plan and then its business plan to wriggle the country out of energy crisis on long-term basis. The official also disclosed that the US would extent $200 million under the business plan of national power programme.

http://www.thenews.com.pk/top_story_detail.asp?Id=24125