Two things IK could have done better!

[yazdi]

Re: Two things IK could have done better!

@Silaaj

Both sides (PML-N and PTI) have played with this issue in order to criticize either PML or PPP. You are right in saying that the Punjab govt had its hands tied, and relied on the fed govt for sovereign guarantees. But the bottom line is, why did Punjab need sovereign guarantees after the NFC award? They burned money on projects like metro and laptops, superficial stuff which could buy votes, but did not care to use the same money for power generation.

There are a couple of big name biogas manufacturers, who have been seeking permission from the Punjab govt to install a biogas power plant in gawala colony, which has enough poop to produce upwards of 250mw power, but nothing was ever done. Reason? perhaps no kickbacks…or its not fancy, like say, a bullet train.

Why did they need sovereign guarantees?
Because they have to sell the electricity to federal government who will fix the tariff and payment terms. No Power project can be executed without sovereign guarantee..
even biogas project..
By the way biogas projects will produce electricity for more than Rs. 35 per unit. I have studied the project very deeply.. One mega watt unit has a capital expenditure of 4 million euros.. compared to half a million euros for a gas or coal fired generating plant. Even biogas produced electricity has to be sold to federal government.. which will distribute the electricity at their own will.. Prevailing laws do not allow anyone to distribute electricity at their will.. including the provincial governments..

P.S. Biofuel operated plants in Europe are producing electricity at highest cost.. they are heavily subsidized by their respective governments. I have personally visited such plants in Italy and Germany..