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PPIB likely formulate new hydel power policy

ASIF FAROOQI

ISLAMABAD: The Private Power and Infrastructure Board (PPIB) is likely to formulate its proposals for "fine tuning" the hydel power policy as response from the private sector to the marketed hydro power generating units remains "disappointing".

"We may recommend certain steps to make the projects more attractive and to boost the investor's confidence," Managing Director, PPIB, Brig Mushtaq Ahmend Khan (Retd) said.

He said response to the offered hydel projects was disappointing as only eight parties turned out to collect the bidding documents for four small power generating units in the Frontier province.

The projects, which were offered to the private sector by the province through the PPIB, include 72 MW at Khan Khawar (Swat), 35 MW at Daral Khawar (Swat), 106 MW at Golen Gol (Chitral), 28 MW at Summer Gah (Kohiatan).

Only eight parties took part in the initial bidding process, which by the international standards, rated the response as negative.

"PPIB intends to discuss the proposals with the investors during the pre-bidding and post-bidding conference," Mushtaq told Business Recorder during an informal talk. He said the experts at the board believe that there was a lot of room for improvement in the hydel policy, which has not worked as it should have been.

He dispelled the impression that the government was negotiating the tariff on the cost-plus basis with the investors. "Hydel projects would be offered on only competitive tariff. Let there be no doubts about it," Mushtaq added.

PPIB chief said that there was nothing wrong with the procedure adopted by the NWFP government for putting up the projects in the market. "We are following the World Bank guidelines on this issue," he said.

The hydel projects have failed to attract foreign investment in the South Asia as after India, Pakistan is also facing problems in marketing these projects. The Indian power ministry had formally announced last month that its policy with regard to giving boost to the hydel power had failed. Energy experts believe that same is the case with Pakistan as the power ministry also seems close to such an announcement.