Deputy Chairman of Planning Commission Sardar Assef Ahmad Ali has said that if Pakistan imports gas from Qatar, it will be cheaper than the gas which will come from Iran . "Iranians are sticking to terms and conditions of the agreement and they would never compromise on the price issue," he said. He was speaking at a seminar on "Improvement on energy sector," organised by the Institute of Electrical and Electronics Engineers Pakistan (IEEEP) at a local hotel on Saturday.

He said that work on Thar coal power project was going on and the shares of Thar Coal Company would be floated in the market very soon. He said that the province of Sindh was the owner of the Thar coal. He said that India , which was stealing the water of Pakistan, should start talks to solve the water issue between the two countries, otherwise, he feared, the two countries would be involved in war on this issue.

He also said: "We would give priority to hydel power projects for providing cheap electricity to the people. Moreover, the government is working on emergency basis to provide electricity to the people." He also said that 5000MW of power would be produced by rental power plants (RPPs) within the next two years. Later, talking to the media, he said the private sector was responsible in the delay of RPPs because it was solely their responsibility to induct the RPPs in time in the national grid and the government had nothing to do with the delay in their induction.

He said Pakistan had best energy resources as compared to the whole South Asian region, but unfortunately "we couldn't bring them in use." He said energy saving was highly required in current situation and use of energy savers could be very useful in this regard.

He said the work on the Thar coal resources would start soon after the Sindh Assembly passed the resolution on it. He said the dictators had really damaged the socio-economic fabric of the country, and he also urged local and foreign investors to come forward and invest in the energy sector of the country.

He said had the previous government taken action in time, the Bagliar dam would have never been constructed by India . Chief of Pakistan Muttahida Kisan Mahaz Ayub Mayo said due to negligence of Pakistani leaders, India had damaged the irrigation system of Pakistan by stealing water in violation of the treaties. He said the people were ready to live without electricity for some time, but they would not allow the RPPs to be part of Pakistan 's power sector. On this occasion, engineers in the seminar gave suggestions to overcome energy crisis.

Gilgit-Baltistan (GB) has huge investment opportunities in agriculture and medicinal herbs, as the area is not only gateway to China and Central Asian States but also possess a well-established infrastructure.

This was crux of presentations given at Gilgit-Baltistan Investment Conference held here at the Lahore Chamber of Commerce on Tuesday. Indonesian Ambassador Isak Latuconsina, the LCCI President Zafar Iqbal Chaudhry, Advisor Governor Gilgit-Baltistan Mian Shafqat Ali, LCCI former President Mian Anjum Nisar also spoke on the occasion.

Speaking on the occasion, Indonesian Ambassador Isak Latuconsina said, "Undoubtedly, Pakistan 's private sector had ability to write new success stories."

He said Indonesia was ready to extend maximum co-operation to Gilgit-Baltistan government in its efforts aimed at bringing progress and prosperity in the area. He said that the Indonesian government was ready to help Gilgit-Baltistan government in exploration of coal and mining. ' Indonesia has the expertise in both the areas and sharing of technical skills could create a win-win situation,' he added.

He said the LCCI's initiative of holding the moot would definitely go a long way in bringing Gilgit-Baltistan at par with other developed parts of Pakistan. "Because of ideally suited climate and abundant water resources, agriculture and medicinal herbs have chances for vertical and horizontal expansion but unfortunately the sectors could not be developed due to non-participation of private sector," Chief Drugs Inspector Gilgit-Baltistan Kifayatullah Khan, said.

Javaid Akhtar of Gilgit-Baltistan Agriculture Department said on the occasion that availability of trained contract farmers, well established tissue culture laboratories, storage and certification facilities make it convenient for the business community to put their money in these sectors. 'Gilgit-Baltistan horticulture policy also ensures a number of incentives to the private sector by reducing regulatory barriers,' he said.

According to him, soft loans are also available to the businessmen for the development of modern horticulture business enterprises while expansion of Karakorum Highway and opening up of Babusar-Naraan Road are the added advantages.

Speaking on the occasion, the LCCI President Zafar Iqbal Chaudhry said that agriculture was one of the potential areas for investment in the shape of production, preservation and marketing of quality fruits and vegetable seeds.

He said the very objective of arranging 'Gilgit-Baltistan Investment Week' at the Lahore Chamber of Commerce and Industry was to bring the area in the mainstream of the business activities because no government in the past paid any attention towards tapping the potential available there.

The Advisor to Governor Gilgit-Baltistan Mian Shafqat Ali said that 'Organic Farming' has huge potential for the investment because of availability of hardworking human resource. He said that sectors like hydro energy, dry food, and precious stones are the actual treasure, which if tapped, will change the fate of this region. He said the LCCI was going to sign number of Memorandum of Understandings with the government of Gilgit-Baltistan that would pave way for future investment in that area. Moreover, keeping in view the interest of people, the LCCI has extended the timings of Gilgit-Baltistan Exhibition and now the exhibition would continue from 11:00 am to 9:00 pm.

The US-based Overseas Private Investment Co-operation (OPIC) will provide over 100 million dollars to Pakistan for Pakistan Mashal LNG project, the country's first venture to import liquefied natural gas (LNG) from Qatar , Business Recorder learnt here on Wednesday.

Pakistan expects to import 3.5 million tons LNG from Qatar as a short-term measure to meet the country requirements. "At present, Pakistan and Qatar are negotiating the deal that is expected to be finalised within a month," said the sources. The Petroleum Ministry would move a summary regarding the deal with Qatar to Economic Co-ordination Committee of the Cabinet for approval by end of current month, the sources added.

Meanwhile, according to a statement issued here, a US delegation, headed by Special Representative for Afghanistan and Pakistan, Ambassador Richard Halbrooke, called on Federal Minister of Petroleum and Natural Resources Syed Naveed Qamar on Wednesday. US Ambassador Anne W Patterson also attended the meeting. During the meeting, views were shared on matters of bilateral co-operation and mutual interest with particular focus on the on-going co-operation in the field of energy. Ways and means to further enhance the existing relations and to support projects intended to reduce the energy shortfall in the country also came under discussion.

Syed Naveed Qamar, giving an overview of his efforts for mitigating fuel demand supply gap, said that significant progress had been made to meet the oil and gas demand, particularly in the short and medium-term through LNG imports, and the matter would soon be placed on the agenda of Economic Co-ordination Committee (ECC) of the Cabinet.

Syed Naveed Qamar said that the US assistance in LNG projects was highly appreciable as the keen interest evinced by the Overseas Private Investment Co-operation (OPIC) in supporting the LNG import projects in Pakistan and could further go beyond the LNG projects.

Many operators with the US equity were showing interest, especially for the short and medium-term, in the project, he added. Pakistan was an "important" and "a great country" and meeting Pakistan's requirements was the US top priority, Halbrooke said, who apprised the minister of his government's keen interest in addressing the country's need by extending support in areas of oil and gas and water. Halbrooke also underscored the need to enhance understanding and confidence so as to maximises trust. Ambassador Patterson, speaking on the occasion, said that a huge potential existed for entrepreneurs to partner with Pakistani investors.

Pakistan and Iran have concluded and initiated an operation agreement, which describes in detail the operating and measurement procedures under the Gas Sales and Purchase Agreement (GSPA) This was stated by Federal Minister for Petroleum and Natural Resources Syed Naveed Qamar in a written reply on a question of Senator Syed Tahir Mushhadi of MQM in the upper house.

According to Naveed Qamar the GSPA will become effective after issuance of guarantee and Pakistan-Iran entering into a Heads of Agreement, for transit transportation of Iranian gas through Pakistan . He said that as per project implementation schedule the work on project feasibility and front-end engineering design will start after the appointment of engineering and project management consultants. Naveed added that the project financing and construction will take around four years and thus first gas flow is likely by the end of 2014.

Replying to another question, he said that Pakistan was daily producing 4 billions cubic feet (bcf) natural gas while its demand was 5.5 bcf, thus there is a gap of 1.5 bcf natural gas. Replying to a question during the question hour session in Senate, he said 116 exploration licences for oil and gas have been granted in the country.

Replying to a question of Professor Khurshid Ahmed of Jamaat-i-Islami, he said that a committee comprising representatives of Ministries of Finance, Planning, FBR,. Chamber of Commerce, OGRA, Petroleum, independent oil experts, Ex- Senator Engineer Rukhsana Zuberi and Oil Industries has been constituted to review oil-pricing formula in light of the Judicial Commission report as per desire of the Supreme Court.

He said in the Petroleum Policy 2009 incentives have been given to attract local and multi-national companies for investment in oil/ gas sector of Pakistan . He added that the nature has bestowed Pakistan with a variety of natural resources, which includes metallic minerals (Copper, Gold. Iron ore, Chromite etc), industrial minerals (Coal, Limestone, Clays, Gypsum, Rock Salt, etc) gemstones (Ruby, Emerald, Topaz, etc) dimension stones (Marble, Granite, Sandstone, etc).

The present Government has attached high priority to development of indigenous minerals resources. In this regard, various steps have been taken to exploit the mineral deposits, Naveed said. He said that the government implemented National Mineral Policy (NMP) in all the federating units and provided financial assistance of Rs 50 million.

Naveed added that the government was facilitating national and international companies for development and mining of mineral deposits as result of which foreigners invested in the development of Saindak Copper Gold deposits, Reko Diq Copper Gold deposits and Dudar Lead-Zink of Balochistan.

The Federal Minister said in Sindh districts Tharpakar, Umerkot and other surrounding areas would be provided gas connections this year, adding that Iran-Pakistan gas pipeline project would be started soon. Qamar said in major cities of Balochistan the gas supply would be provided soon.

Federal Minister for Housing and Works told Senate that no plots have been allotted to parliamentarians, secretaries, judges, journalists and CDA employees in capital since 2002. Meanwhile, Raja Perveiz Ashraf Federal Minister for Water and Power said the construction of grid station in the northern Mohmand Agency would start soon but there was delay due to law and order situation there.

He said Iran and Pakistan would sign a MoU soon on a 1000 MW project under which Iran would supply electricity on reasonable rates. The minister also told house that Iran was not supplying free of cost electricity to Pakistan.

Minister for Tourism Maulana Atta-ur-Rehman told Senate that new tourism policy is being drafted adding that the existing policy was prepared in 1991. He said the Ministry of Tourism is in constant contact with the provincial governments for the promotion of tourism in the country. He said that federal government has purchased 172 acres land in Balochistan, and the ministry was also constructing a facilitation centre on the Coastal Highway for tourists.

The government is likely to allow fuel oil blending in the country soon. Chairman of Oil and Gas Regulatory Authority (Ogra) Tauqir Sadiq while speaking at the second meeting of FPCCI Standing Committee on Petroleum Products at Federation House here on Thursday asked all the stakeholders to give their proposals on the subject seeking government permission in this regard.

He said that the government would support every proposal, which is in the favour of the country and beneficial for the consumers. He invited proposals from all the stakeholders and said that the government would grant permission for fuel oil blending in the country within days.

The chairman Ogra said that being the regulator of oil and gas sector, he would welcome every proposal and suggestion from the industry. He said Ogra is committed to provide level playing field to all the market participants. He said that there is shortage of gas in the country, as the existing reserves of gas are continuously decreasing while gas exploration activities remained low due to law and order situation mainly in Balochistan. On the other hand, he added, the dependence on gas for power generation has massively increased. The high demand against less supply led to a surge in gas prices in the country, he noted.

Speaking on the occasion, former president FPCCI, S.M. Munir said that the gas and power tariffs are being increased on the directives of IMF. "The baggers have no choice except to follow the directives of donors," he added.

He said industry in Pakistan is facing difficulties to run their business. He pointed out that only textile industry is facing losses of one billion rupees per month due to power shortage and tariff increase. He said that the country's export target is unlikely to be achieved, so the government should take measure to solve the issues being faced by the industry.

Vice President, FPCCI, Zakria Usman, said that the country's exports are continuously declining. The recent hike in gas and power tariff has further deepened the concerns of the industry, as cost of doing business would further increase. Chairman All Pakistan Lubricant Manufacturers Association said the local lubricant industry is producing around 200,000 tons of lubricant oil against the total demand of 400,000 tons in the country.

He pointed out that illegally imported and fake lubricant oil is being sold in the country. He suggested that the government should remove excise duty on lubricant oil so that the industry could be able to compete in the market. Chairman Ogra asked to point out the locations of illegal manufacturers of lubricant, assuring that the regulator will take action against the miscreants.

Various issues including oil and gas pricing and energy crisis were discussed in the meeting. The meeting was told that the energy demand has almost doubled in the last ten years. However, any single power generation plant was not set up in this period. The gas supply to industry has increased by 13 percent.

The energy cost has increased by 100 percent. On the other hand, a circular debt of Rs 82 billion remained another issue in this regard. The participants of the meeting were of the view that the energy crisis will continue in days to come. They said that the government should take necessary measure and efficient management to address the issue.

The chairman FPCCI Standing Committee on Petroleum Products, Malik Khuda Baksh, Abbas Bilgrami MD Progass, Abdul Hadi Khan, Chairman LPG Distributors Association, Abdul Sami Khan, Chairman Petroleum Dealers Association, Kaleem Siddiqui, President Byco Petroleum (Bosicor Pakistan), Mumtaz Hassan Khan of Hascol Pakistan and Ejaz Ali Khan from Overseas Oil Trading Limited attended the meeting.

Copyright Business Recorder, 2009

Minister for Petroleum and Natural Resources Naveed Qamar said on Wednesday that the government had allowed the Dutch company, '4Gas', to establish floating liquefied natural gas (LNG) terminal at Port Qasim for handling LNG imports.

Addressing a press conference here, the Minister said that the commission to the LNG terminal operator would not be more than 50 cents per MMBTU, which also included the rent of the floating terminal. "After five years, the company would establish a fixed terminal at Port Qasim," he said, adding that the cost of land-based terminal would range between $700 million and $800 million.

"The floating terminal, technically termed as the Floating Re-gasification Supply Unit (FRSU), will have the capacity to handle 3.5 million tons LNG, which amounts to 500 MMCFD natural gas," the Minister said, adding that it would be operational for five years, that later would be established as a fixed terminal, to handle the long-term import of (LNG) to Pakistan. The rent of FRSU is up to $200 million per annum, as it will be an interim arrangement for five years.

The Minister said that LNG supply would start from December next year. Apart from the arrangements to be made by the terminal operator, the SSGC has to establish pipelines and other infrastructure at selected point at Port Qasim, to transfer imported gas to its main system.

The government will provide sovereign guarantee to the LNG suppliers. "The guarantees will not be in the form of letter of credit or any other document liable for bank loans, but the government would just guarantee assuring the supplier that SSGC would purchase the LNG for 20 years," he said. "GDF-Suez and Shell LNG had expressed commitment to supply LNG for 20 years," he said, adding that the government "is negotiating" prices with these two companies.

The GDF-Suez is a French firm, looking for interests in the region, while the Shell LNG is the operator partner of Qatar Petroleum, one of the largest LNG suppliers in the world. The Minister said that there was no government-to-government contact between Pakistan and Qatar. "Qatar government has asked to deal through Shell LNG," he said, adding that the price of LNG would be linked with the price of Brent crude.

He said that, on average, the price would be higher than the gas to be procured through the Iran-Pakistan gas pipeline. The minister said that work was in progress over the 'IP' gas pipeline project, and there was no opposition for the security agencies and the US government to abandon the project. "I had a meeting with Overseas Private Investment Corporation of US along with the US Ambassador and they did not object to import of gas from Iran ," the Minister added.

Copyright Business Recorder, 2010

Pakistan State Oil (PSO) has bought by tender 90,000 tonnes of 87-octane gasoline for February-April arrival from Chinese-owned trading house Kangqi at steady premiums to its previous purchase, despite strong Asian demand, traders said on Wednesday.

PSO bought the parcels at a premium of $32.00 a tonne on a cost-and-freight basis, similar to what it had paid for 60,000 tonnes of gasoline slated for December 2009-January 2010 arrival. PSO's spot imports are done mainly on a sporadic basis when domestic supplies fail to meet demand, traders said. "They don't have regular monthly tenders," a trader said.

The company bought the parcels at a time when Indonesia 's demand is exceptionally strong due to earlier refinery outages. Rare demand also emerged from India , as refiners BPCL and IOC seek imports ahead of rolling out cleaner fuels from April in 13 major Indian cities. These pushed the cracks - premiums/losses obtained from refining Brent crude into gasoline - to an 11-month high on Tuesday at $10.29 a barrel.

LAHORE (January 01 2010): The Punjab government and a German company, International Renewable Energy Systems, have decided to launch a solar energy project for power supply to tube wells and villages in the province.

A delegation of German experts in solar energy sector led by Alexander Klass held a meeting with Punjab Chief Minister Muhammad Shahbaz Sharif here on Thursday, which decided in principle for mutual co-operation between Punjab and the German company under which the German experts would launch the project, disclosed an official.

Secretary Agriculture, Secretary Irrigation, Vice Chairman Investment Board, Secretary Advisory Council as well as senior officers concerned were present on the occasion. Alexander Klass informed the meeting that he would soon present feasibility report of the project and measures would be taken for the early implementation of the project. Talking to the German delegation, the Chief Minister said Germany has expertise in solar energy sector and this technology could also be used in Punjab for operating tube wells and supply of power to villages.

"There are around 800,000 tube wells in Punjab that could be operated with solar energy for improving the performance of agriculture sector and increasing per acre yield. There are bright prospects of the success of this project in Southern Punjab," he added. He asked the German experts to evolve a practicable project for Punjab that is cheap and beneficial to farmers. He said the German company should invest in the project on pay and earn basis. He also said the Punjab government would provide all out facilities for this project.

"The German company should initially provide 12 solar energy panels on experimental basis and after their success, the scope of this project should be extended to 800,000 tube wells. The project of solar energy would be executed in a transparent manner and the German experts should submit their feasibility report as soon as possible," he added.

According to him, Pakistan is facing energy crisis, which is adversely affecting agriculture, industries and other sectors. The Punjab government is working on various projects for the generation of energy from alternate sources, including hydel power and coal. Agriculture is the backbone of national economy and the government is taking solid measure for the uplift of this sector.

ISLAMABAD (January 05 2010): Some respite for power consumers is on the cards as the duration of the ongoing dreaded load shedding would start decreasing significantly from January 21 - thanks to the increase in hydel generation and induction of five new power plants.

Director General Pakistan Electric Power Company (Pepco) Muhammad Khalid on Monday told a private TV channel that five new power plants including two Rental Power Producers (RPPs) and three Independent Power Producers (IPPs) would start generating a combined power of 1000mw. Moreover, the water availability would improve as a result of increased availability of water to Mangla and Tarbella dams.

The country was enduring a gap of around 2500 mw. The power generation stands upto 11000mw as comparing to a total demand from 11,000 to 13,500 mw. One more aspect should also be kept in mind that this year power demand has also increased upto 3,174 mw as compared to corresponding period last year. The power generation has also increased upto 2000mw this year as compared corresponding period last year, the DG Pepco said.

Less rains are contributed to pressurising the system due to increased usage of tube wells, he said adding that overall 37 percent less rains are recorded this year across the country. While in Punjab upto 96 percent less rains are recorded.

The current duration of load shedding is five hours in cities and 8 hours in rural areas, he said. Responding to a question he said Pepco purchases electricity at Rs 9.05 per unit and the sale rate from July to November 2009 was Rs 5.59. After 12 percent increase in power rates the government is still paying subsidy to consumers.

LAHORE (January 06 2010): Gilgit-Baltistan (GB) has huge investment opportunities in agriculture and medicinal herbs, as the area is not only gateway to China and Central Asian States but also possess a well-established infrastructure.

This was crux of presentations given at Gilgit-Baltistan Investment Conference held here at the Lahore Chamber of Commerce on Tuesday. Indonesian Ambassador Isak Latuconsina, the LCCI President Zafar Iqbal Chaudhry, Advisor Governor Gilgit-Baltistan Mian Shafqat Ali, LCCI former President Mian Anjum Nisar also spoke on the occasion.

Speaking on the occasion, Indonesian Ambassador Isak Latuconsina said, "Undoubtedly, Pakistan 's private sector had ability to write new success stories."

He said Indonesia was ready to extend maximum co-operation to Gilgit-Baltistan government in its efforts aimed at bringing progress and prosperity in the area. He said that the Indonesian government was ready to help Gilgit-Baltistan government in exploration of coal and mining. 'Indonesia has the expertise in both the areas and sharing of technical skills could create a win-win situation,' he added.

He said the LCCI's initiative of holding the moot would definitely go a long way in bringing Gilgit-Baltistan at par with other developed parts of Pakistan. "Because of ideally suited climate and abundant water resources, agriculture and medicinal herbs have chances for vertical and horizontal expansion but unfortunately the sectors could not be developed due to non-participation of private sector," Chief Drugs Inspector Gilgit-Baltistan Kifayatullah Khan, said.

Javaid Akhtar of Gilgit-Baltistan Agriculture Department said on the occasion that availability of trained contract farmers, well established tissue culture laboratories, storage and certification facilities make it convenient for the business community to put their money in these sectors. 'Gilgit-Baltistan horticulture policy also ensures a number of incentives to the private sector by reducing regulatory barriers,' he said.

According to him, soft loans are also available to the businessmen for the development of modern horticulture business enterprises while expansion of Karakorum Highway and opening up of Babusar-Naraan Road are the added advantages.

Speaking on the occasion, the LCCI President Zafar Iqbal Chaudhry said that agriculture was one of the potential areas for investment in the shape of production, preservation and marketing of quality fruits and vegetable seeds.

He said the very objective of arranging 'Gilgit-Baltistan Investment Week' at the Lahore Chamber of Commerce and Industry was to bring the area in the mainstream of the business activities because no government in the past paid any attention towards tapping the potential available there.

The Advisor to Governor Gilgit-Baltistan Mian Shafqat Ali said that 'Organic Farming' has huge potential for the investment because of availability of hardworking human resource. He said that sectors like hydro energy, dry food, and precious stones are the actual treasure, which if tapped, will change the fate of this region. He said the LCCI was going to sign number of Memorandum of Understandings with the government of Gilgit-Baltistan that would pave way for future investment in that area. Moreover, keeping in view the interest of people, the LCCI has extended the timings of Gilgit-Baltistan Exhibition and now the exhibition would continue from 11:00 am to 9:00 pm.

LAHORE (January 06 2010): Due to reduced demand in the winter the current average shortfall of electricity in the country is 2,189 MW, Ministry of Water and Power said on Tuesday. It said that the total generation of hydel and thermal station is 7,456 MW against the demand of 9,645 MW, resulting in a shortfall of 2189 MW.

It may be added that due to closer of irrigation canals for the annual month long cleaning and desilting, hydel power units at Tarbela, Ghazi Barotha and Mangla dams are producing very little of their generation capacity of 6,400 MW electricity.

Pepco is managing the shortfall by carrying out six to eight hours load shedding in the cities and eight to 10 hours power outage in the rural areas. The company is hopeful of improvement in the power generation situation at the end of January when the canals are reopened and water is released from the dams.

LAHORE (January 07 2010): Pakistan Electric Power Company (Pepco)has geared up its efforts for system augmentation and in the process 11041 new transformers have been added in the system from July to November 2009. According to the Pepco spokesman, as a part of the system augmentation programme, power transformers on the grid stations and the distribution transformers are being added to ensure smooth power supply and also as a replacement of the damaged transformers.

Distribution of transformers, Lesco has added 1538, Gepco 1206, Fesco 1354, Iesco 588, Mepco 3412, Pesco 688, Tesco 15, Hesco 1069, and Quesco have added 1171 new transformers in their respective distribution network.

With the addition of these transformers, the total number has reached to 514498 in the Pepco system, which will further enhance the system's capacity to tackle over loading and low voltage problems. The load situation on 05 January 2010 revealed the total demand of electricity as 11255 MW and a deficit of 3165 MW was managed to regulate the power supply.

ISLAMABAD (January 09 2010): The Ministry of Water and Power has announced that it will consult Public Procurement Regulatory Authority (PPRA) and Infrastructure Project Development Facility (IPDF) on a proposed pact with the US-based firm, General Electric Company (GE).

According to the draft MoU, a copy of which has been obtained from the PPIB, it has been proposed that Pakistan and the GE will work intensively and co-operatively to identify energy and transportation projects in which the firm will have technologies and solutions suitable to Pakistan, to secure sources of public and privatize funding to facilitate such funding as much as possible, and to facilitate, as appropriate, the ability of the GE to participate in such projects.

The GE is interested in energy, including renewable energy, where it will assist Pakistan in achieving its goal of generating 54,000 MW power by 2020 through diverse energy sources. It has also been proposed that Pakistan and the GE will explore expanding the scope of this MoU to encompass other sectors vital to Pakistan 's infrastructure and economic development, such as healthcare, water treatment, air transportation and financial services.

According to the draft MoU, the following are the GE's commitments:

-- The GE is willing to cooperate with Pakistan to identify the areas of energy and transportation (i) those projects currently in progress and; (ii) those that are being contemplated, on which the GE engagement could be helpful.

-- Work with Pakistan to determine a path to meeting its energy goals, with a special focus on wind power and high efficiency gas turbines.

-- Help Pakistan develop its rail transportation system through expert consultations, addition of locomotives and rail signalling systems, and other advancements and solutions that the GE can provide in the area.

-- Provide counsel and advice to Pakistan in the areas of energy and transportation where possible, including on such topics as electricity and rail system planning and management, fuel options for power generation, and regulatory and policy frameworks.

-- Assist Pakistan with identifying sources of funding necessary to implement the projects in the areas of energy and transportation, including private and public sectors, export credit agencies, multilateral development banks and other international institutions.

-- Provide GE management and leadership training to such Pakistani middle and senior level managers and government officials in the energy and transportation sectors, where possible and as may be agreed.

-- Work with Pakistan to identify and possibly promote export opportunities and related jobs in the energy and transportation sectors.

-- Localize support of the GE products in Pakistan to the extent consistent with prudent business principles, the GE business objectives, and Pakistan 's economic development strategies.

The following are Pakistan 's commitments:

-- Provide support to the establishment and operation of the GE facilities in Pakistan , consistent with Pakistani law and regulations, including the identification and implementation of incentives for the GE investment in Pakistan , and help meet crucial infrastructural and policy needs for the successful implementation of agreed projects.

-- Provide assistance in understanding and complying with relevant Pakistani regulations and policies in the areas of energy and transportation.

-- Provide support for obtaining and securing funds for projects, including any sovereign guarantees, allow a stable investment climate for capital transfers and present opportunities for potential investors to participate in agreed projects.

-- Provide assistance in facilitating dialogue between the GE and Energy and Transportation ministers and other relevant officials and entities in Pakistan to enable and develop the GE's advisory roles in the areas of energy and transportation.

-- Facilitate the issuance of work permits and visas for the GE employees and contractors as needed to support the objectives of the MoU.

-- Work with the GE to facilitate the engagement of the United States and other governments to support and foster the expansion of commercial ties between Pakistan and the GE.

TRANSPORTATION: Indicative proposal, submitted to Chairman of Pakistan Railways on September 25, 2009 for 100 Nos 3000 HP and 50 Nos 2000 HP locos, financing through the US Exim Bank, 100 percent Erie built. The GE is of the view that a long-term maintenance agreement for proposed 150 locos for 18 years would help the PR have a highly reliable fleet with improved availability that translates to better asset utilisation.

According to the GE, signalling modernization will help the PR increase its capacity achieve its "fast cargo" objectives, in addition to use of modern communications-based signalling solutions that will enhance the capacity without investing in double tracking. The meeting was also attended by Secretary of the Board of Investment (BoI) and representatives of ministries of Railways, Finance, Planning Commission and AEDB.

LAHORE (January 10 2010): After international competitive bidding, construction work on Diamer-Bhasha Dam Project will start in October this year. The project, on its completion, will store 6.4 million-acre feet (MAF) of water for agriculture besides generating 4500-MW of low-cost hydel electricity.

This was stated by Wapda Chairman Shakil Durrani while talking to a delegation of the Armed Forces War Course, National Defence University , Islamabad , at Wapda House on Saturday. The visiting delegation was headed by the Chief Instructor Major General Tahir Habib.

Speaking on the occasion, the Chairman said that Wapda is focused on the optimal utilisation of water and hydropower resources in the country. To a question, he responded that the international financial institutions have shown keen interest in financing the various Wapda projects because of their high economic internal rate of returns (EIRR).

Earlier, Wapda Member (Water) Syed Raghib Abbas Shah, briefing the delegation on water sector, said that Wapda is constructing 15 mega projects in water and hydropower sectors. Mangla Dam Raising Project has been substantially completed, while Satpara Dam in Skardu and Gomal Zam Dam in South Waziristan Agency are expected to be completed in July and October this year respectively.

The delegation was further briefed that Jinnah Hydropower and three Khwar projects with accumulative generation capacity of 419-MW would start contributing to the National Grid from this year onwards. The delegation was informed that in addition to executing mega projects in water and hydropower sectors, Wapda has been tasked to build 32 small and medium dams in all the four provinces and Fata.

Of them, 12 dams will be constructed in the first phase of three years to provide gross storage capacity of about 2.5 MAF for irrigating more than 6,35,500 acres of land through high efficiency micro irrigation system.

Pepco Managing Director Eng Tahir Basharat Cheema, during his briefing on power sector, told the delegation that various reforms have been introduced in the power sector of the country to make it more efficient and customer-friendly. He said that the government is taking a number of short, medium and long-term measures to bridge the gap between demand and supply of the electricity.

Dilating upon the supply and demand side measures, he informed that more than 8,000-MW electricity would be added to the National Grid by December 2012. Wapda Member (Power) Fazal Ahmad Khan, Member (Finance) Chaudhary Abdul Qadeer, MD (Administration) Naveed Akram Cheema, Secretary WAPDA Imtiaz Tajwar and other officers concerned were also present on the occasion.

KARACHI (January 10 2010): The Thar Coal and Energy Board (TCEB) in its 7th meeting at Sindh Chief Minister House on Saturday decided to give 20.5 and 20 percent Internal Rate of Return (IRR) to those companies investing in 'initial projects' at the Thar Coal achieving financial close respectively by December 2014 and 2015.

The federal government has summoned a high-level meeting next week in the federal capital to review performance of the Karachi Electric Supply Company (KESC). This was stated by Federal Minister for Water and Power Raja Pervez Ashraf while briefing media after 7th meeting of the TCEB.

He said the meeting, which was chaired by Sindh Chief Minister Syed Qaim Ali Shah, reviewed the issues ranging from giving fiscal incentives to the investors to developing railway link between the Thar Coal and Karachi Port. According to Ashraf, the Chief Executive Officer of KESC would be briefing a high-profile meeting in Islamabad next week about the performance of the utility.

He said besides KESC's outstanding dues against government institutions the meeting would take account of the complaints of bogus and excess billing against the KESC. He said to overcome power crisis in the country the government during next three years would build at least 13 dams, special emphasis being on coal and hydro based power generating plants, which are cost effective.

The federal minister said the Board formed a three-member committee to determine price of the coal on top priority, adding a group of experts would work out a mechanism for coal pricing and develop a comprehensive proposal.

"The Board discussed the incentive package for investors and decided that IRR for initial projects achieving financial close by December 2015 on indigenous coal to power project; they would be entitled to 20 percent IRR and those achieving financial close by December 2014 would get additional 0.5 percent IRR," said a handout handed to the journalists on the occasion.

It said approving the proposal of Clean Coal Centre of International Energy Membership for Sindh Coal Authority, the Board appreciated the joint venture agreement proposal for Badin Coal Field and resolved to support all such initiatives to develop coal projects in the province.

According to the handout, the Board, reviewing progress on feasibility study for the railway linkage of Thar Coal and Karachi Port , decided that the PRACS would prepare the final proposal in this regard. The Board also supported the allocation of an additional 24.6 sq km area for Sindh Engro Coal Mining Company (SECMC) and the issuance of LoI to Engro Powergen.

The Board also cleared the inclusion of three additional members, one from NTDC and two from private sector, in the UCG's governing body. Stressing an early completion of infrastructure required for the Thar Coal Fields, the TCEB lauded progress on the project being undertaken by the SECMC.

The Board also discussed the draft MoU by Pepco deciding that the MoU would be signed by January 20, 2009. The meeting was attended among others by Finance Minister Shaukat Tarin, Member Madad Ali Shah, Sindh Minister for Irrigation and Power Syed Murad Ali Shah, Minister for Revenue Jam Mehtab Dahar, Chief Secretary Sindh Fazal ur Rehman and Federal Secretary Water and Power Shahid Rafi.

KARACHI (January 14 2010): The natural resource-rich Gilgit-Baltistan has the potential of generating at least 50,000 megawatts electricity, Gilgit-Baltistan Chief Minister Syed Mehdi Shah said in an exclusive interview with Business Recorder on Wednesday. The province can produce cheap hydro-based electricity more than the requirements of the country, which is between 20,000 to 25,000 megawatts, he said.

He said that as the government has already signed almost 39 Memorandum of Understanding (MoU) with Lahore Chambers of Commerce and Industry (LCCI), it would also consult with other chambers of the country to focus on the region for future investment.

ISLAMABAD (January 14 2010): US Special Representative for Afghanistan and Pakistan Ambassador Richard Holbrooke on Wednesday announced that US government will contribute $16.5 million (Rs 1.4 billion) to improve the operating capacity of Tarbela Dam hydroelectric plant. The grant funding will be provided to the Ministry of Water and Power (MoWP), and will be implemented through Water and Power Development Authority (Wapda).

In a ceremony marking the signing of the agreement, Richard Holbrooke said the energy crisis in Pakistan was affecting the masses besides crippling its commerce and industries. He stressed the need for an efficient system of power generation and distribution in spurring economic development for the benefit of all.

The rehabilitation, expected to be completed within 18-24 months, is part of the $125 million 'Signature' program announced by Secretary of State Hillary Clinton in October last aimed at increasing electricity output and improving energy efficiency in Pakistan . Shahid Rafi, Secretary of Ministry of Water and Power said the United States is Pakistan 's largest donor partner and appreciated Secretary Clinton's words that had been translated into action.

ISLAMABAD (January 15 2010): Minister for Water and Power Raja Pervaiz Ashraf on Thursday informed the National Assembly that the USA is planning to provide $125 million assistance as short term measure to improve the power sector. In a written reply, he told the House that the USA has not provided any financial assistance to control the energy crisis so far.

However, they are planning to provide $125 million assistance for short-term measures in the power sector. The firm commitment in this regard is yet awaited from US side to determine whether the amount would be in the form of grant or loan. When asked about the new deadline for ending load shedding, he said that Pakistan is going through a number of crises, including that of power, which is affecting the general public badly along with gas load shedding. The power load shedding is creating serious problems for both the domestic as well as commercial consumers.

A number of MNAs asked the minister to give the new deadline for ending load shedding. However, he said that he is very cautious in this regard in view of the past experience when he gave deadline of December 31, 2009 for ending load shedding.

The ministry would further proceed in case of rental power plants after completion of third party audit, he added. Responding to a query, he said that it was not possible to end load shedding by December, 2009, due to delay in installation of rental power plants, financial constraints and testing of IPPs, including non-availability of gas during winter months. In order to overcome/end the problem of load shedding Pepco has taken numerous steps on the supply side as well as demand side.

He said that the AEDB has initiated the Parliamentarian Sponsored Village Electrification Programme after receiving requests from different parliamentarians for electrification of villages in their respective constituencies. Three schemes have so far been approved and funds amounting to Rs 17.491 million against two schemes have been released to AEDB in 2008-09. The funds of Rs 30 million against third scheme have been approved and will be released to AEDB to implement the scheme during 2009-10.

Raja Pervaiz Ashraf further said that the Memorandum of Understanding (MoU) for development of Thar Coal for power generation was signed with M/s Shenhua Group Corporation of China . A project contract for Detailed Coal Geological Investigation of Thar coalfield was also signed. Subsequently, a project contract for Detailed Hydro-geological Investigations for the power plant in Thar coalfield was signed too. The capacity of project was 2X300 MW (600 MW) coal-fired power plant and development of coal mine of 5-15 million tons capacity.

This project envisaged an investment of around 3 billion US dollars. M/s Shenhua Group conducted detailed geological and hydro-geological studies at Block-II of Thar coalfield. They had submitted geological study report. They were to submit hydro-geological study report, which they did not, as it was their copy right property.

M/s Shenhua was to submit feasibility study report, prior to start of mining activities and construction of power plant. As per statement of M/s Shenhua, the feasibility was to be submitted after fixation of tariff, which pertains to Wapda / Nepra. The issue of tariff and tax policy was not resolved by Wapda/ Nepra and FBR to the satisfaction of the company, therefore, the firm declined to undertake the project, he added.

He further said that the Kohala Hydro Power Project is 1100 MW. The dam will be constructed near village Siran about 30-km upstream of Domei on Jhelum River in Muzaffarabad Distt Azad Kashmir. Its feasibility study report was completed by January, 2009.

The project is not delayed. Feasibility Study Report as prepared by Kohala Consultants (JV) consisting of 8 volumes handed over by WAPDA to CWE, PPIB in February, 2009. The update Feasibility Study Report has been submitted by M/s China International Water and Electric Corporation (CWE) on 15-10-2009 to PPIB as per letter of Intent (LoI), which is under review with panel of experts appointed by PPIB.

Raja Pervaiz Ashraf further disclosed that a total of 3457 army personnel are working in all distributing companies of Wapda. In Pesco 564 army personnel are working; Tesco 34; QESCO 129; HESCO 514; IESCO 541; MEPCO 390; FESCO 590; Gepco 174 and 521 army personnel are working in LESCO.

KARACHI (January 16 2010): The Sindh government has decided to carry out environmental studies of coal-based power generation and mining and their impact on livelihood of local people and the cultural heritage of district Tharparkar, it is learnt.

According to sources, the provincial government would undertake environmental and social study before the start of full-scale mining and setting up of coal-based power generation plants at Thar coalfields to ascertain the impact, both positive and negative, so that alternative initiatives could be taken as soon as possible. The Provincial Working Development Party (PDWP) has recently approved the scheme--environmental impact assessment of coal-fired power generation at Thar at a cost of Rs 30.842 million, they said, adding that the environmental assessment studies would be completed by the end of the current fiscal year.

To accomplish the task, one international environment expert and a national social expert would be hired shortly. However, the environmental impact assessments for different projects would be carried out by the investors, they added. Sources said that the study would be carried out over an area of 22,000 square kilometre at Thar coalfields to determine impact, both positive and negative, of coal-based power generation, mining, transmission and associated activities on the environment.

The study would help minimise the adverse effects of the development on the environment and people and to comply with the international good practices like Equator Principles for environment and social sustainability to attract international investment for power generating project at Thar coalfields, they said.

Furthermore, the Sindh government has recently floated Expression of Interest (EoI) under the World Bank's assisted Thar Coal and Power Technical Assistance Project to select the firm for undertaking environmental studies.

As per the EoI, the consultant will collect data and develop a spatial and environmental studies database for the baseline characteristics for Thar coal region and the baseline information will include environmental, social, economic, health, cultural heritage and other information to portray socio-economic and natural resources of the project-affected area, sources further said.

For the cultural heritage, the consultant will examine and present a detailed description of the flora and fauna discussing important ecosystem species and functions such as rare, threatened, endemic, protected and endangered species, migratory species and wild-food crop plants.

LAHORE (January 17 2010): The Pakistan Electric Power Company (Pepco) is working on the concept of creating a 'synergic effect' through the collaboration of all the related organizations and departments of the power sector, in order to ensure maximum possible electricity generation for reducing load management duration.

Based on this concept, said a statement, the Pepco has established a pragmatic and swift liaison system with the Ministry of Water & Power, Wapda, PSO, Nepra, Nespak, KESC, Ministry of Petroleum, Provincial Governments, Discos, NPCC, AEDB, PPIB, financial institutions and Enercon. AEDB and PPIB are consulted on regular basis for new power projects.

Pepco has signed fuel supply accord with PSO for fulfilling the furnace oil and HSD requirements for all of its subsidiaries and power plants. This agreement will enable PSO streamline its supply chain activities for the timely provision of oil, for electricity generation. Pepco is also contemplating for upgrading its distribution network through the technical collaboration with Nespak and other engineering organisations, for ensuring smooth power supply.

The overall electricity consumption in domestic areas is 44 percent, commercial 6 percent, industrial 24 percent, agriculture 12 percent, and bulk supply 14 percent for over 18 million consumers. Peak electricity demand has been recorded up to about 11500 MW in the recent days. Out of these projects, a number of rental power plants have also been approved for installation, in the country.

As per the load situation, the total electricity demand went up to 11510 MW while a deficit of 3020 MW was managed on 15 January 2010. Electricity export to KESC was 690 MW ON 15 January 2010.

ISLAMABAD (January 19 2010): Pakistan Electric Power Company (Pepco) Managing Director Tahir Basharat Cheema has said on Monday that all the 14 rental power projects (RPPs) became functional by December 31, 2009 as originally envisaged then and the applicable tariff for the RPPs would have been raised by six percent and not 31 to 45 percent.

Talking to Business Recorder , he said the selection of Asian Development Bank (ADB) as the third party auditor in response to the mounting criticism over the RPPs delayed the establishment of the RPPs resulting in the much higher tariff. Additionally, Cheema stated that the ADB had already extended support for the establishment of eight RPPs with a combined generating capacity of 1168 MW and work on these was under way.

He said Techno power RPP at Faisalabad had begun generating 150 MW, Golf RPP was expected to begin generating 62 MW by February 10. Similarly, Reshma RPP would start generating 200 MW by the end of February, he said, adding that the ADB report would be released to the relevant ministries by the end of the current week.

The Pepco Managing Director confirmed the news story that a presentation was made by the ADB on January 6, but insisted that it was a consultative meeting wherein the bank had requested some data from the government. It was not a summary of its findings, nor indeed an audit of the RPPs, he said.

He said that the contract for the RPPs envisaged 36 percent capacity utilisation as opposed to 32 to 35 percent as noted in the news report. According to reports, the government would be legally bound to make payment for 90 percent capacity utilisation. Meanwhile, the Water and Power Ministry officials said that the ADB had not submitted a report on the RPPs. When contacted, an official in the ADB neither confirmed nor denied the media reports about the findings regarding the RPPs.

Asked if it would issue a contradiction, the official said that the ADB was going to submit its report to the government by the end of this week, hence there was no need to issue any clarification or contradiction. Finance Secretary Salman Siddique, when contacted on phone, stated that the ministry had not yet received any audit report from the ADB on RPPs.

He stated that the report was expected by the end of the current week. Meanwhile, the Finance Ministry, in a statement issued on Monday, clarified that the ADB had not yet submitted third party evaluation report. "A section of the print and electronic media has carried a story with reference to the Finance Division pertaining to the third party evaluation of the energy sector being carried out by the Asian Development Bank.

"It is clarified that as yet no report of the Asian Development Bank on the subject has been furnished to the Ministry of Finance. In fact, the third party evaluation report is expected to be received in the Finance Division on Friday (January 22). Therefore, the story, appearing in a section of the print and electronic media, is speculative and not based on facts," the Ministry claimed.

FAISALABAD (January 19 2010): President Asif Ali Zardari has told business community that government is trying to resolve the issues of loadshedding of electricity and gas on a priority basis.

Talking to delegations of the Faisalabad Chamber of Commerce and Industry, Pakistan Textile Exporters Association, Pakistan Hosiery Manufacturers and Exporters Association and other leaders of value-added textile industries, at National Textile University , here on Monday, he invited the business community leaders to Islamabad for a detailed meeting.

He said the government is actively working on development projects, which will solve problems of water, electricity and unemployment in the next three years. During the meeting, Mian Muhammad Latif, Chairman of Chenab Limited and former Chairman , Pakistan Textile Exporters Association said that due to terrorist activities overseas buyers are reluctant to visit Pakistan while local industrialists and exporters are going abroad to obtain export orders.

Due to prevailing situation, they were not in a position to fulfil the requirements of their buyers and loadshedding of gas and electricity was yielding negative impact on the productive activities. President Zardari announced Rs 500 million for Research and Development Work at Faisalabad Chamber of Commerce and Industry. He also agreed with the demand for the setting up of Lahore High Court Bench at Faisalabad and the upgradation of Faisalabad Airport for international flights.

The meeting was also attended by Governor Punjab Salmaan Taseer, Minister for Information Qamar Zaman Kaira, Minister for Water and Power Raja Pervaiz Ashraf, Minister for Textiles Rana Farooq Saeed Khan, Chairman Faisalabad Garment City , Rana Mushtaq Khan, provincial ministers and a large number of parliamentarians.

Earlier, the President inaugurated four development projects in the industrial city. These projects are aimed at improving the electricity transmission and distribution system and development projects of National Textile University. He also announced an amount of Rs 100 million for the development of the NTU.

The President, who has reviewed development projects and launched a series of new projects, arrived here by road owing to bad weather. The President inaugurated Gakkar Machi 500 KV Grid Station and 500 KV Muzaffargarh-Gatti Transmission Line, completed at a cost of Rs 450 million in two years.

The project will help improve electricity transmission system for the areas adjoining Gujranwala , Gujrat, Sialkot and Lahore . The system also includes two circuits of 220 KV and eight circuits of 122 KV for Gujranwala. Minister for Water and Power Raja Pervaiz Ashraf presented the President a shield. The President also performed the groundbreaking of new administrative and academic blocks at the National Textiles University .

Farhatullah Babar quoted President Zardari as saying that the government was mindful of the needs of energy for the economic and industrial development of the country. "We have decided to upgrade our existing power stations as well as produce more power through rental power plants. Energy development is the central issue in our partnership with the United States ," he added.

The President mentioned the announcement of 125 million dollars from the United States for the upgradation of Tarbela hydroelectric station to meet the country's energy shortfall. He said the government has adopted a new economic policy framework based on reliance on public-private partnership as engine of economic and industrial growth, making the workers partners in development projects, optimizing utilisation of scarce water resources, and development of bio-fuel.

President Zardari said the Chinese investors had shown keen interest in investing in Pakistan within the framework of private-public partnership. He said Pakistan has taken a firm decision to rely on trade and not aid for overcoming its economic problems and was seeking greater access to international markets for Pakistani products.

"This will boost industrial production in the country and create additional jobs," he said. President Zardari said Shaheed Mohtarma wanted the uplift of the workers and wage earners. He said it was in this regard that shares have been given to the workers in state run enterprises."

"The workers are now share holders in these enterprises and have been given 12 percent shares." President Zardari said the government has undertaken plans to build thirty two dams in the country under the private public partnership. "These dams will not only improve the water situation but also produce power," he said and added that building of dams will transform the lives of the people of the area. The spokesperson said the President also informed the plans to build housing units for the poor in Sindh and also mentioned the Aghaz-e- Haqooq-e-Balochistan.

The President recalled the political reform package for Gilgit and Baltistan and said now it has its own Chief Minister, Governor, Public Service Commission and Election Commission. He said Pakistan has entered into agreement with China for hybrid seeds and drip irrigation and said work on the Jhelum-Neelum project will begin this year. "These measures will revolutionise farming sector in Punjab and other provinces as we believe in action, not in mere words."

ISLAMABAD (January 20 2010): Prime Minister Syed Yousuf Raza Gilani has called for the exploitation of both internal as well as external resources to meet the energy requirements of the country. He emphasised that hydro potential, which is in abundance in the country, should also be developed on fast track basis. He said that besides a focused approach, an integrated energy plan is needed to ensure energy security of the country.

The prime minister said this while chairing a meeting to review the energy situation and examine measures to bridge the supply and demand gap, both in the long and short term. As regards LNG project, the prime minister asked the Ministry of Petroleum and Natural Resources to place the proposal before the ECC for thorough deliberations and decision.

Earlier the Minister for Petroleum and Natural Resources Syed Naveed Qamar apprised the meeting on various options to improve the energy situation, including the import of LNG (Liquified Natural Gas) from Qatar to meet the needs of the country. The meeting was also attended by the Minister for Finance Shaukat Fayyaz Ahmad Tarin, Minister for Ports and Shipping Babar Khan Ghauri and concerned federal secretaries.-PR.

LAHORE (January 22 2010): Senior Provincial Minister, Raja Riaz Ahmed has said that as far as 21 abadies of PP-65 in Faisalabad would be provided electricity and Prime Minister has released funds out of his special grants. He added that in this regard necessary formalities would be completed by January 25 and immediate steps would be taken to provide this facility.

He was talking to a delegation headed by Raja Hamza who called on him here on Thursday. Raja Riaz Ahmed said that as directed by Prime Ministry, Minister of Water and Power has issued instructions to Fesco to install polls and other infrastructure in Bilal Park , Bismillah Town and other adjacent areas. He said that in couple of months these vicinities would be given facility of electricity. Senior Minister said that apart from crisis of energy, present government is trying its level best to provide basic facilities to the masses.

ISLAMABAD (January 24 2010): A consortium of Chinese Exim Bank and US Exim Bank will provide Rs 46.5 billion financing to Pakistan for 747 MW combined cycle power plant at Guddu. This was stated by Executive Committee of National Economic Council (Ecnec) which met on January 21, Business Recorder has learnt.

The Ministry of Water and Power raised the cost of the project from Rs 59775.41 million to Rs 60871.13 million due to the declining international rupee value. In the PC-1, the Ministry had taken foreign exchange rate at Rs 83 per dollar, which now has been revised upward to Rs 85 per dollar resulting in rise in the cost of the project.

Sources said that Ecnec referred the summary to the Cabinet for approval due to escalation of the cost. The project is proposed to be financed by Export Credit Agency (ECA) Financing Consortium that includes Chinese Exim Bank and US Exim Bank.

Chinese Exim Bank will provide 25 percent of the cost of Chinese origin equipment; and 35 percent of the cost of US origin equipment will be borne by US Exim Bank, and 40 percent by Genco-11 (15 percent advance payment+local component). The operation cost has been projected at Rs 3.23 per kwh and the project will be completed in 36 months.

The main objective of the proposed project is to install combined cycle power plant of 747 MW capacity comprising of two gas turbines of 261 MW each, two heat recovery steam generators and one steam turbine unit of 225 MW. This plant will operate on gas by diverting gas quota of existing steam units (1-4) of power complex at Guddu.

Sources said that Ecnec was further informed that addition of the 747 MW combined cycle power plant would not change the quantity of the sox emission as the plant would be operated on natural gas which does not contain sulphur. However, by applying low NOx burners during gas firing NOx emission would be 30 mg/nm3 against World Bank standards of 51 mg/nm3. There will be no adverse impact on the environment due to addition of natural gas fired 747 MW combined cycle power plant.

The CDWP in its meeting held on November 19, 2009 had recommended the project for submission to Ecnec at an estimated cost of Rs 59775.41 million including FEC 45472.75 million subject to the condition that the project would be financed from their own resources under the already agreed Chinese loan agreement.

Thermal power station Guddu is situated on right bank of River Indus near Guddu Barrage. Existing site of Guddu thermal power station has communication facilities, potable water source and convenient connectivity with national grid system. Further, sufficient land for construction of new power plant at the east-south of existing Unit No 4 is available and also enough land is available in the existing residential colony for construction of additional housing units for the officers and technical staff.

ISLAMABAD (January 28 2010): AZUR Energy Group of Germany would set up a 50 Mega Watt Solar project in Pakistan and a feasibility report in this regard has already been formulated. This was told by a German Energy Group delegation during the visit of Board of Investment (BoI) here on Wednesday.

The delegation also called on Minister of State and Chairman BoI, Saleem H Mandviwala and discussed investment opportunities in various sectors of economy including the Energy sector in Pakistan . The head of the delegation told the Minister that his company has decided to set up 50 MW Solar energy project in Pakistan .

He added that in this regard his company has already conducted a survey for the execution of this project in Pakistan . The Chairman of AZUR Energy Group of Germany said that his company has already prepared a feasibility report and a ground survey is being conducted at Multan and Bahawalpur areas and negotiations for the acquiring of land for the project is also in progress.

He said that in the next step the AZUR Energy Group of Germany would bring solar energy technology in Pakistan . Speaking on the occasion, Saleem H Mandviwala said that Pakistan is an ideal location for investment in various sectors including the energy sector.

He said that Pakistan has adopted a liberal investor friendly policy, broad features of which include, proactive facilitation and guarantees of equal treatment of both local and foreign investors, easy tariff structures and a liberal regime on repatriation of profits. The Minister also welcomed the German delegation and appreciated them to show their interest in Pakistan . He highlighted the policy parameters of investment in Pakistan.

ISLAMABAD (January 29 2010): Ambassador of Iran to Pakistan, Masha' allah Shakeri Thursday called on Minister for Water and Power, Raja Pervez Ashraf and discussed matters of mutual interest, bilateral relations to further boost economic ties between the two countries.

During the meeting, it was agreed to expedite the process of importing 1000-MW power by Pakistan from Iran on fast track basis for its early completion, said a press release issued here. The current status of transmission line for import of 100MW power for Gwadar from Iran was also discussed.

The minister informed that a Pakistan delegation was leaving for Iran on Thursday night to discuss matters relating to import of power within the shortest possible time frame. They also discussed the current status of gas pipeline project, construction of transmission line for import of 100MW for Gwadar and 1000MW for national grid and appreciated each other's co-operation in this regard.

The minister said that government was taking necessary measures to generate electricity to bridge the demand and supply gap through fast track projects. He informed that the government was attaching high priority to exploit the indigenous resources like coal, hydel and wind for power generation.

KARACHI (January 29 2010): Sindh government will energise 795 villages involving a cost of Rs 10,000 million under Village Electrification Programme in Sindh while phase II to provide electrification facilities throughout Sindh province under Chief Minister's directives through elected representatives of respective areas.

This was decided in a meeting of Provincial Development Working Party (PDWP) held under the chairmanship of Additional Chief Secretary (Development) Munawer Opel here Thursday. The meeting reviewed the progress of the first phase of village electrification programme under which 1855 villages have been approved and Rs 1800 million released for this purpose.

In the first phase, a total of 1855 villages were approved out of which 963 villages energised while development works for electrification of remaining 892 villages were in full swing. The Chief Engineer (Technical/Director) Hesco in a detail presentation informed that in a total of 126,758 sq.km service area excluding Karachi in 22 districts of Sindh province having total numbers of 1487,152 customers, a total of 1268 villages have been electrified since 2006-07 to 2009-10 for which HESCO has received funds for development works.

Out of Rs 1800 million for 963 electrified villages, over Rs 1059.200 million were spent during the present government. Accordingly 541 villages energised up to December 2009 at a cost of Rs 526.960 million while Rs 532.240 million will be spent on remaining 422 villages.

Additional Chief Secretary (Dev) Munawer Opel directed the sponsors to ensure that poor villagers are not charged higher meter cost and they should monitor the Hesco activities for better performance. He said a committee, including representatives of Hesco, P&D Department (Chief Energy) should be constituted in the I & P department to visit the sites of completed schemes and all works thus be carried out by Hesco.

The Secretary Irrigation & Power, Shuja Ahmed Junejo said that Chief Minister Sindh is keenly monitoring the "Village Electrification programme" in Sindh and regularly inquires about progress and status of the programme. He said that a team of electric Inspectors in Power wing of I&P department would check villages electrified under phase-1. He agreed to provide logistic facilities to verification teams.

The meeting was attended, among others, by Secretary I&P Shuja Ahmed Junejo, Karim Bakhsh Sheikh, Saeed Ahmed Sethar, Dr Noorul Haque, Iqbal Ahsan Zaidi, Deen Muhammad Talpur, Abida Lodhi and concerned officers of Hesco, P&D and Finance department.