Ministry of Energy (Power Division)

Press release For the week ending August 30, 2013

Ministry of Water & Power is sincerely following the objective of bringing relief in the life of a common citizen of Pakistan. In its endeavor to attain this objective, Ministry is taking all possible steps which can remedy the situation.

2.         We are glad to share that Government has allocated Rs. 59 billion in the current year’s Annual Development Program for overall development of water sector. This is in addition to an allocation of around Rs. 250 billion for development of Power sector of the country.

3.         Following activities not only highlight the current engagements of the Ministry but also indicate its orientation and setting of priorities:

A)        Building new power generation mechanism:

·         Realizing importance of enhancing hydropower generation, an effort is being made to complete on going 900 MW Neelum Jehlum Hydropower Project. To resolve issue of financing, Ministry has remained actively involved in negotiations with Saudi Fund for Development for arranging additional loan of USD 375 million.

·         Similarly, details are being worked out for arranging loan of USD 448 million for the same project with EXIM Bank of China.

·         At the home front, a fund of RS. 20 billion is being raised through exploring potential of local financial market.

·         We are making headway for building Diamer Bhasha Hydropower Project as well. Funds being an important component, has remained in focus in the recent days as the issue has been in focus of discussions with Asian Development Bank and Middle Eastern Funds. Since, Government of Pakistan is committed to the Project, Rs. 17 billion have been allocated for it in the current year’s Annual Development Program. Ministry has already made a request to the Planning Commission of Pakistan for early release of Rs. 3.4 billion out of the current year’s allocation which is needed for land acquisition for physical work on the Project.

·         A 6600 MW coal Power based Corridor is being planned in Gaddani, Balochistan. The Project will generate a cheaper energy is expected to complete by 2017.

·         12.          425 MW Nandipur Power Project is being completed on fast track basis. A Project Management Unit with able human resource has already been established for the purpose.

 

B)        New addition to the emery mix:

We also feel happy to share that a hydropower project by the name Dubair Khuwar, located in Kohistan with a power generation capacity of 130 MW and completed at a cost of Rs.17 billion will be ready to contribute to the national grid by end of September 2013.

Many more are expected to augment national power grid soon.

C)        Institutional strengthening to tie loose ends:

Realizing importance of other sectors of the mandate of the Ministry, an effort has been made to control theft of electricity as well. This has been done by amending Criminal Procedure Code of 1898 and Electricity Act of 1910. Amendments have been approved by Council of Common Interest (CCI) on July 5, 2013. This will help us control an electricity theft which is a major source of our concern.

In the same spirit, National Power Policy Framework has also been approved on July 31st, 2013 by CCI. It will help the country to regularize and facilitate various aspects of power investment, generation, transmission and distribution.

D)        Safeguarding national interests beyond geographical boundaries:

Realizing the fact that water is precious natural resource of our country, Ministry has remained equally active on international front to safeguard our interests. We have remained actively engaged with International Court of Arbitration constituted to resolve conflict with India with regard to Kishanganga Hydropower Project which it intends to construct over Riven Jehlum in Occupied Jammu & Kashmir.

E)        Engagement to mitigate suffering due to floods:

We have not remained oblivious to our responsibility to play an active role in national efforts for mitigating effects of looming floods. Ministry of Water & Power has remained actively engaged with federal and provincial authorities to ensure that loss due to flood are minimized and human suffering averted to the best possible extent.