The Asian Development Bank told Pakistan Finance Minister Shaukat Tarin last week rental power plants will not be cost efficient and advised that even if the country wanted to proceed with the plan it should reduce project size in half, Dawn reports Monday.
Only 65 per cent Pakistanis have access to electricity and still demand has outstripped supply; the country is currently facing peak power shortages of approximately 4,000 – 4,500 MW.
To address the present electricity demand-supply gap, coupled with consistent growth in demand (7-8% per annum), Zardari government had proposed Rental Power Plant as an intermediate measure.
In August last year presided over by Prime Minister Yousuf Raza Gilani the federal cabinet approved installation of 14 rental power plants to generate 1,500MW to partially offset the overall deficit of 2,700MW. The remaining 700MW will come from the existing system. A total of 2,250MW of rental projects was approved.
The opposition politicians had described it as ‘a source of kickbacks’.
Pakistan government had asked ADB to analyze prospects of Rental Power Plant projects sponsored by the water and power ministry. According to reports, the ADB said is of the opinion that the government should execute only eight RPPs with a total generation capacity of about 1200MW.
Even at the reduced level tariff is likely to increase by 24 per cent, in addition to about 30 per cent increase in electricity rates as required under IMF loan agreement. About 18 per cent tariff increase has already been notified by the government under the IMF program.
Pakistan has 19,420 Megawatts (MW) of total installed generation capacity from hydroelectric, thermal, and nuclear sources.1 Electricity is supplied mainly by conventional thermal plants, with oil and natural gas being the primary fuel sources. Thermal power plants account for around 66% of total capacity. A further 32% of the capacity is accounted for by hydro-electric plants, with the remaining 2% supplied by nuclear power stations.
Ibrahim Sajid Malick is a Pakistani-American writer, technologist, and social entrepreneur. He has been writing on Pakistani society and politics since 1986. He has held several media, communications, and technology positions for organizations large and small. Mr. Malick graduated from New School for Social Research with a master’s degree in anthropology. He holds several technology and management certifications. He works for a leading technology firm and blogs at www.ibrahimsajidmalick.com
aafia siddique k sath kiya horaha he,amrica itna zulum na karen.Pakistani government is muamle me kiya kar rahi he.