PMLN looks towards RPP's for power generation

If we remember Khawaja Asif who is currently eyeing the RPPs for generation of 3000 MW is the same guy who went to the court against RPPs in PPP’s tenure? Typical example of Pakistani politics…

Prime minister saves ministers, alienates civil servants - Pakistan - DAWN.COM

ISLAMABAD: By asking the National Accountability Bureau (NAB) to go after the former managing director of Pakistan State Oil for “misappropriation, mismanagement, incompetence and corruption”, and suspending top officials of the Petroleum Ministry in the wake of the recent crippling shortage of petrol, Prime Minister Nawaz Sharif might have been able to save his ministers from embarrassment. But he has ended up alienating the federal bureaucracy on which the PML-N government is known to have been relying heavily.

Over the past week, at least two serving secretaries have asked the PM for reassignment. The reason, sources privy to the development say, is that they didn’t want to be penalised for the sins of their ministers.

In addition, bureaucrats on several second and third-tier level postings have also started looking for assignments in departments where they won’t have to face major challenges that may land them in hot water.

The aftershocks of the crisis have been felt by officers of three key ministries; planning and development, petroleum and natural resources and water & power. Incidentally, things are only likely to get more challenging for officers working in these departments, because all three have important and difficult targets to achieve in the coming months.

**At the Ministry of Water and Power, the government’s promise to add around 3000MWs to the national grid before summer looms ominously overhead. While this measure will be vastly popular — because the general public will have to face less loadshedding — failure to meet the target in time may have serious ramifications.
**
[HR][/HR]Fearing more of them may be made scapegoat for future failures, bureaucrats scramble to find easier assignments

[HR][/HR]**“If that doesn’t happen, for whatever reason, we know that somebody from the ministry will be held responsible. Being a senior PML-N leader, Water & Power Minister Khawaja Asif is virtually untouchable, even for the PM,” an official from the ministry told Dawn, hinting at the rocky road ahead.
**
**Another official said that Mr Asif had been pushing for short-term rental power projects (RPPs) to meet the summer deadline. This is surprising, because it was Mr Asif who led the opposition to RPPs when the previous PPP government opted for them, and even obtained a Supreme Court verdict in his favour on the matter.
**
There is no respite for the embattled Ministry of Petroleum and Natural Resources either. Here, officials face the immediate task of importing liquefied natural gas (LNG) from Qatar at competitive rates. The government has set March 31 as the deadline for this project in a bid to provide the people affordable fuel in coming summer months.

**“If Petroleum Minister Shahid Khaqan Abbasi can deflect responsibility for the recent fuel crisis and the PM can let him go off the hook without so much as a slap on the wrist, we shouldn’t expect anything different to happen in the future. Eventually, some officer will be made a scapegoat,” vented a ruling party office-bearer who wants the ministers responsible to take the fall for the recent oil shortage.
**
The Planning Commission, headed by Mr Ahsan Iqbal, faces the daunting task of bringing the much-touted Pak-China Economic Corridor to fruition. But already, the project is feeling the heat due to shortage of funds.

A source close to the Planning and Development Ministry said the government was reviewing many of the projects covered under the corridor. “Given the paucity of funds, I don’t see the government meeting the Oct 2017 deadline for completing its dream project; the Karachi-Multan-Lahore motorway project within the Rs259.353 billion that have been earmarked for it,” an official privy to the project’s workings told Dawn.

Another top official, conveying the mood of the bureaucracy, said, “It’s an open secret that the oil crisis was caused by mismanagement at the top and the government failed to pre-empt the drying up of fuel stations, which was imminent.”

The fact that PSO was defaulting on its payments, which has been identified as the root cause of the problem, was something that had been raised at the cabinet committee level quite regularly. These meetings on energy were chaired by the PM himself, so how come the only people held responsible were the PSO MD and petroleum officials, the government official asked, rhetorically.

**On the other hand, all three ministers; Shahid Khaqan Abbasi, Ishaq Dar and Khawaja Asif, are key members of the energy committee and are eventually responsible for ensuring the uninterrupted provision of fuel in the country.
**
**“But the government’s actions thus far give the impression that the ministers have absolutely no control over officials in their ministries. In either case, the responsibility should have been shared at the political level too,” the official said.
**
Published in Dawn, Economic & Business, January 26th , 2015

Re: PMLN looks towards RPP's for power generation

2 things here, Khawaja Asif went to courts against the corruption in getting RPPs and not the RPPs, no point in having RPP of 1000 MW where its capacity is to generate only 40% max while we pay for 1000 MW generation and provide them fuel oil to do so.

If RPPs can be efficient and we can have favorable terms then it is not a bad idea.

Re: PMLN looks towards RPP's for power generation

What I have come to conclude is that this energy problem is not going to be fixed through such ad hoc policies.
The problem is so deep rooted that it will require a holistic approach, with some significant reforms on all accounts.
They need funding to upgrade lines, they need to invest in new technology, they need to create more engineers, they have to invest in renewable energy, they need to improve management...
I dont know if people like the Sharifs who only look to secure their next election are the ones who can oversee such long term policy initiatives unless they get instantaneous political credit.

Re: PMLN looks towards RPP's for power generation


How can we be sure there's no corruption involved here? In any case this is a short term measure, if Pakistan was able to pay back the generation companies we have already there wouldnt (circular debt) be loadshedding in the country.

Re: PMLN looks towards RPP's for power generation

The argument about Kh. Asif objecting to what RPPs were paid for is moot because the same principle is being used to pay (rather fund) IPPs. You will never find him objecting to that, because IPPs belong to friends and family (including himself).

2 big obstacles sit in the way of resolving power crisis. 1) Bad agreements made with IPPs which need to be redone. and 2) tackling line losses/power theft.

PPP and PMLN will never renegotiate the IPP aggrements, and the only power thieves they will go after are those who are petty. They will never touch the ones who steal millions in power with the connivance of Wapda linemen and officials, because in many cases, they are bigwig industrialists, again, part of the friends and family circle.

Re: PMLN looks towards RPP’s for power generation

Tumhain yaad ho kay na yaad ho…

PML-N alleges govt. of fake power crisis - GEO.tv

Updated at: 0645 PST, Saturday, January 30, 2010
ISLAMABAD: Releasing a white paper on the Rental Power Projects (RPPs), the Pakistan Muslim League-Nawaz (PML-N) said on Friday that it would use all constitutional forums to get the contracts awarded to eight RPPs reversed.

**Addressing a press conference, where he released the white paper, PML-N leader Khwaja Muhammad Asif termed RPPs contracts the biggest fraud in the country’s history.Rejecting claim of the government that the solution to the national energy crisis is impossible without the RPPs, he said the government artificially created the present power shortage. “The energy shortage has been created to fiscally benefit the front men and others in the power sector,” he added.
**
He said the electricity generated by the RPPs would be more expensive than the current tariff, and would consequently push inflation to the dangerous level besides having adverse effects on the national economy.

The PML-N leader pointed out that the government would have to make repayments to the tune of five to six billion dollars to the new RPPs over the next five years. He said the matter would be forcefully raised in parliament, keeping the option of seeking judicial intervention in the episode open.

He also hinted that the PML-N might also go for a long march to press the government for annulling the dubious contracts. The PML-N leader said the RPPs were almost five per cent per KWH more expensive than the IPPs.

“The RPPs delivering 188MW will be getting $423 million in rent, other than the fuel cost, over the five year contract price and a new plant of this size would cost about $200 million,” he added.

He said since most of the forthcoming RPPs and IPPs would depend on imported furnace oil, the finance minister had already expressed his concerns that the country would be unable to afford the burgeoning fuel import bill that would almost certainly create a tectonic shift in the balance of payment equilibrium.

“During the fiscal year of 2008-09, the government spent $9.9 billion to import 80 per cent of the country’s oil requirements.” Khwaja Asif said the oil import bill for 2009-2010 budgeted for $9.4 billion in the recent budget was amateurish halfway into the new fiscal year with industry experts and government officials already projecting oil exports exceeding $14 billion.

**He accused the water and power minister of misleading parliament and the public. He said his own answers during parliamentary proceedings and the Pepco figures pointed towards a comfortable energy surplus without commissioning a single RPP.
**
He said the Water and Power Ministry had ignored international bidding, deliberately evaded transparency and bypassed both the ECC and the federal cabinet to issue the Letter of Intent to a single party for a hydropower project valued at more than Rs200 billion.

Re: PMLN looks towards RPP’s for power generation

Interestingly even the terms of the RPPs would be the same as negotiated by PPP.

Read this excerpt with the news reproduced below.

رینٹل پاور پراجیکٹ : Ø*کومت Ù†Û’ پیپلز پارٹی کا متنازعہ منصوبہ شروع کرنے کا فیصلہ کر لیا](رینٹل پاور پراجیکٹ : حکومت نے پیپلز پارٹی کا متنازعہ منصوبہ شروع کرنے کا فیصلہ کر لیا)

Re: PMLN looks towards RPP’s for power generation

Its a shame that our newspapers dont have online archives going back to the late 90s, otherwise you would have seen an identical news item from the papers of 1998, when PMLN went to court to challenge the IPP contracts signed by PPP. This song and dance is a long term fixture of these 2 parties.

Re: PMLN looks towards RPP's for power generation

I know thats why its important to show their faces when ever possible as our people tend to forget and forgive very soon, thats why these parties dont feel the need to change.

Re: PMLN looks towards RPP’s for power generation

So PMLN government has rebranded the name of RPP’s to short term independent power producers.

Short-term solution: Govt to revive three rental power plants – The Express Tribune

The federal government on Saturday decided to revive three Rental Power Plants (RPPs) which had been shelved by the Pakistan Peoples Party (PPP) government and also imposed regulatory duties on import of steel products and mobile phones.
In order to avoid public criticism, the Pakistan Muslim League-Nawaz (PML-N) government has rebranded the RPPs as short-term Independent Power Producers (IPPs).
Interestingly, the author of the policy is the Water and Power Minister Khawaja Asif, who had filed a case against RPPs in the SC during the PPP tenure, alleging corruption.

Re: PMLN looks towards RPP’s for power generation

We named one PM raja rental what should we name Nawaz Sharif and Kh Asif now?

Towards absolute power again - Newspaper - DAWN.COM

The PPP government had initiated a Safe City Project in Islamabad in 2009. The $124.7 million project awarded to a Chinese company in an unsolicited bid and in breach of PPRA framework was challenged before the Supreme Court. Through its ruling in the ‘Raja Mujahid Muzaffar case’, the court struck down the contract in 2012 and held that, “not only the contract dated 29.12.2009 was entered into in violation of the law in a non-transparent manner but was also at a cost which to say the least is suspicious if not vastly inflated”.
But the PML-N government has revived the Safe City Project and awarded it to the same Chinese company reportedly on the same terms and conditions. Likewise, the Supreme Court had struck down corruption-dripping RPP contracts amidst much fanfare (for which PPP prime ministers are facing accountability courts). It has now been reported that the Rental Power Plants have been revived and rendered kosher by the PML-N government under the cleaner name of Short-Term Independent Power Plants.

Re: PMLN looks towards RPP's for power generation

The local IPPs and the contract with them is what is shoved in nation's throat, the so-called IPP are working at 25-40% capacity yet, they take their time to pay to the PSO because govt delay their payment and that is because we the people either steal the electricity or does not like to pay ( in technical terms it is "line losses")... and if govt threat to punish regions where line losses are high, then the so-called other political elected govt and its "speaker" and "CM" gets into the act and threat the federal govt..

so i agree RPPs are not the ultimate solution nor it is and desired one, but kindly give us alternate, the captive power plant you mentioned in your post cannot produce enough... so please enlighten us with the solution to the power shortage...

Re: PMLN looks towards RPP's for power generation

So how different these RPP's would be from the other IPP's?

When we cant settle the circular debt for them, how will we pay these ones off?

Mind you the same guy (Kh Asif) went to the court against these RPP's and now he is championing their cause. How come they were detrimental for the country during PPP time and need of the hour now?

I'll reproduce again what he used to say in 2010.

He accused the water and power minister of misleading parliament and the public. He said his own answers during parliamentary proceedings and the Pepco figures pointed towards a comfortable energy surplus without commissioning a single RPP.

Re: PMLN looks towards RPP's for power generation

when did i said anything about the settling circular debt?

the issue is, RPPs, if govt can negotiate better terms in which govt does not have to provide them with the fuel or if govt do provide them with the fuel then it shall be detected from the rental payment... and if were the govt, i would direct this power to the industrial side instead of home use... as industrial development can enable people to look for some alternate..

again, RPP is real short-term deal, industry of Pakistan by now should have adopted to the alternative energy, i.e. Solar in order to maintain their minimum production/consumption ratio. Having said that, i don't think so govt is going to add any significant amount into the national grid... speaking of National Grid, i don't know if govt has already upgraded the national grid... because if they have not, then i don't think that the existing grid can contain the load and there shall be overloading and tripping, which we already have seen atleast three times so far.

Re: PMLN looks towards RPP’s for power generation

LFMAO… the power crisis in PPP was “artificially” created while now the power crisis is natural? How big of a liar do you have to be to be a retarded f’ing politician?

Re: PMLN looks towards RPP’s for power generation

khwaja siraa Asif? :hehe:

Re: PMLN looks towards RPP’s for power generation

:hehe:

Re: PMLN looks towards RPP's for power generation

It's interesting to see the silence of the mainstream media on this issue.

Re: PMLN looks towards RPP's for power generation

Khawaj sahab nai keh deya hai k its impossible to solve power crises for at least next 3 years. This will give Norey perfect election slogan "Aray abhi tu power aani shuru koi hai" -- is leyee vote hameen he deen

Re: PMLN looks towards RPP’s for power generation

Khursheed reminds govt of broken promises on energy - Pakistan - DAWN.COM