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Government’s priority is to make country self-sufficient in cheep and affordable energy: Minister for Planning and Development

Islamabad, August 26, 2013 (PPI-OT): CDWP meeting held today under the chairmanship of Minister for Planning and Development / Deputy Chairman Planning Commission, Prof. Ahsan Iqbal. The meeting was attended by the sponsoring agencies and the representatives from Provincial Governments and Special Areas. The meeting was especially held to consider energy related development projects.

The Minister stated that Govt’s priority is to make country self-sufficient in cheep and affordable energy. He further stated that water and energy are backbone of Govt’s policy. He stated that if proactive approach is not adopted for building water reservoirs, the country may face bigger problem in ten years than what is being faced for energy today. He advised the participants that PC-I should be prepared with due diligence in consultation with all stakeholders to avoid frequent changes in PC-I at implementation stage.

CDWP approved / recommended 13 projects costing around Rs 103 billion including Foreign Aid of Rs 8.2 billion relating to Energy Sector.

CDWP is authorized to approve projects costing upto Rs. 1.0 billion. Projects costing over Rs 1.0 billion are to be approved by ECNEC. Eight (8) projects costing Rs 101 billion, each costing over Rs 1.0 billion, were recommended by CDWP to ECNEC for consideration/ approval.

Sectoral features of main projects are as below:

PC-II to conduct feasibility study for Gaddani Power Project costing Rs 100 million was approved by the CDWP toady. The cost of the feasibility study will be provided from the PSDP. For the construction of Energy Park to produce 6600 MW electricity at Gaddani. A Company Pakistan Power Park Management Ltd. fully owned by Govt. of Pakistan has been established to arrange finances through Special Purpose Vehicle to finance projects at Gaddani.

Three Hydropower projects sponsored by Government of Khyber Pakhtunkhwa namely “Sharmai (150 MW) Hydropower Project costing Rs 33 billion, “Engineering Procurement and Construction (EPC) of Shogo-Sin HPP District Chitral” costing Rs 27 billion and “Engineering Procurement and Construction (EPC) of Shushgai HPP District Chitral” costing Rs 29 billion were recommended by CDWP for approval of ECNEC. A total of 425 MW electricity would be produced. These projects will be financed on Public Private Partnership mode – 10% of the cost will be borne by Govt. of Khyber Pakhtunkhwa from its resources whereas 90% of the cost will be arranged by private sector.

Under Punjab’s Renewable Energy Development Sector Investment Programme, revised PC-Is of construction of five Hydel Power Stations (Run of River Hydropower Projects) each at Chianwali, Pakpattan, Deg-out, Marala and Okara together costing Rs 12 billion having total capacity of over 24 M.W. were considered and recommended by CDWP for approval of ECNEC. The 80% cost of these projects would be met from ADB loan.

Two projects of Pakistan Atomic Energy Commission namely i) Detailed Exploration of Uranium Resources in Bannu Basin and Kohat Plateau, Phase-II, (ii) Detailed Exploration of Uranium Resources in Dera Ghazi Khan – Phase-VIII costing Rs 634 million and Rs 726 million, respectively were approved by CDWP today.

A revised PC-I of Pakistan Nuclear Regulatory Authority titled “Establishment of National Dosimetry and Protection Level Calibration Laboratory (NDCL)” was approved by CDWP.

In addition to above, the following concept clearance of proposals were also considered by CDWP:

Conversion of FO / Gas fired boilers to coal of 450 MW Units 1 and 2 Thermal Power Station, Jamshoro

Conversion of FO / Gas fired boilers to Coal of 1350 MW Units 1-6 Thermal Power Station, Muzaffargarh

Installation of new cool fired Power Plants having Capacity of 2×660 MW at Jamshoro

Implementation of Dassu Hydropower Project

KASA 1000 Power Project

The Committee decided after extensive discussions that construction of water reservoirs is very important for the future of the country. The Committee therefore noted that Diamer Bhasha Dam takes precedence over all other projects in the water sector. Due to financial crunch, the Committee concluded that Govt. may built Diamer Bhasha Dam water reservoir first.

This would not only make available water for irrigation purpose but would also make additional water available during off season for Tarbella and other projects for generation of electricity when the water availability for hydel power generation reduces. To overcome financial crunch, CDWP decided that private sector should be encouraged to finance infrastructure projects.

For more information, contact:
Haji Ahmed Malik
Principal Information Officer
Press Information Department (PID)
Tel: +9251 925 2323 and +9251 925 2324
Fax: +9251 925 2325 and +9251 925 2326
Email: piopid@gmail.com

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