960403

KESC privatisation

likely _by end of '96

KARACHI: The process of privatisation of Karachi Electric Supply Corporation is expected to be completed by the end of 1996.

This was stated by Federal Secretary, Ministry of Water and Power, Ashfaq Mehmood, while briefing the Senate Standing Committee on Water and Power which met here on Wednesday under the Chairmanship of Senator Sardar Bashir Ahmed Khan Tareen.

The senators who attended the meeting were: Ilyas Ahmed _Bilour, Syed Zulfiqar Ahmed Shah Jamote, Akram Shah, Manzoor Ahmed Gichki, Syed Qasim Shah, Haji Sakhi Jan, Haji Gul Sher Khan Afridi, Noor Sher Khan and Abdul Rehman.

Ashfaq said that the government has already appointed a financial advisory committee which will prepare a report about the liabilities and assets of the KESC within three months.

He stated that two proposals are under consideration which pertain to privatisation of the KESC as it is, or to privatise its generation and distribution systems separately.

The Federal Secretary informed the Senate Committee that the government has already issued directives to the KESC and Wapda to reduce its transmission and distribution (T&D) losses through effective technical and administrative measures.

He said that the reduction of T&D losses will greatly help these organisations to overcome the power tariff enhancement problem in future.

Ashfaq expressed his satisfaction over the measures taken by KESC for reducing its T&D losses.

Earlier, in his briefing KESC Chief Syed Tanzim Hussain Naqvi, informed the Senate Committee that KESC will purchase 2016 megawatts (MW) power from 10 private sector power plants to meet Karachi's power needs by the year 2000 as per present government's new energy policy.

He said that out of these 10 plants, four private power stations will provide 640 MW to KESC by the end of next year.

Naqvi stated that with the commissioning of KESC's 210 MW power generating unit No. 6 at Bin Qasim Power Station by the end of this year and purchase of 640 MW power from private sector power plants KESC will be able to overcome the power shortage problem in the city.

He informed the senators that KESC is spending Rs. 38 billion from 1993 to 1998 under Prime Minister's Karachi Package for the rehabilitation and expansion of its transmission and distribution network which will greatly help it in the improvement of power supply system of the city.

Naqvi said that KESC had already spent Rs. 532.26 million last year under a crash programme for system improvement which has helped reduce power breakdown complaints in old city areas. Besides, to stabilise power supply position in the city, KESC has also installed eight 40 MVA power transformers at a total cost of Rs. 112.75 million through its own resources at Dhabeji, CAA, Hub Chowki, EPZ, Landhi, Korangi and Clifton grid stations while the installation of power transformers at Defence, Gulshan-i-Iqbal, Orangi Town and Civic Centre grid stations is under progress and expected to be completed by the end of this year.

Naqvi also highlighted improvement in billing system and stated that with the induction of private contractors into billing department, the standard of metre reading in Saddar, Defence, Clifton and PECHS areas has considerably improved and bills to the consumers in these areas are being sent on the basis of their actual consumption which has reduced over-billing and excessive billing complaints.

Chairman Wapda Khalid Javed, Joint Secretary Power Sahibzada Masood Ali, Joint Secretary Water, Syed Faiz Ahmed Zaidi, Deputy Secretary Aurangzeb Akbar, KESC DMDs S. M. Javed and Kamal Afsar, Chief engineers Khalid Jameel, Aslam Rashid Abbasi, Rahim Summo, Khaliq Iqbal, N. H. Burney were also present besides Joint Secretary Senate Allauddin Masud.-APP