Welcome

Welcome to official website of PRES

Bleeding power sector brought under Wapda

The government has brought the whole power sector under Wapda, pre-empting the collapse of the bleeding power sector which is feared to face a huge deficit of Rs792 billion by June end.

To this effect, the government has appointed Wapda Chairman Syed Ragib Shah as the power sector coordinator.Chief executive officers (CEOs) of the power distribution .companies (Discos), generation .companies (Gencos), National Transmission and Despatch Company (NTDC)/ Central Power Purchasing Agency (CPPA) and the Pakistan Electric Power Company (Pepco) will report directly to him for the purpose.

The Wapda chairman will also discharge his duties as the co-chairman of the reconstituted Board of Directors of NTDC/CPPA. The Water and Power Ministry has issued a notification to this effect.

The appointment has been made with the spirit to turn around the power sector which has almost collapsed and its transmission system is also on the verge of collapse. The power sector has also eaten up the dues of over Rs96 billion of Water and Power Development Authority (Wapda) and is unable to pay back to the mother organisation, which is why Wapda has no money to complete its ongoing hydropower projects.

Even Wapda is unable to open the ESCROW account for the Terbela Extension IV project for which the World Bank has extended about $840 million to the government. The World Bank has linked its release of loan with the opening of ESCROW account but the NTDC, being run by the DMG Group, did not open the ESCROW account.

The power sector was earlier being run by unprofessional people and with the appointment of Wapda chairman as its coordinator, it may stand on its feet.

The revenue collection has reduced to less than 80 percent owing to which the circular debt has increased manifold. About the transmission system, an official said this system was also on the verge of collapse as upgrading and maintenance of the transmission system was ignored.

The official said that right now the transmission system runs on the active and reactive power, but on the reactive power side, no investment had been made due to which the system could collapse.

Comments are closed.