MULTAN:
Foreign Minister Shah Mahmood Hussain Qureshi has said the process for revision of power tariff agreements with independent power producers (IPPs) is in its final stages and would facilitate the people once it is completed.
“The agreements are almost in final stages and their fruit would be shifted to masses soon,” Qureshi said on Sunday while addressing ground-breaking of 132KV grid station at Multan’s Fatima Jinnah Town.
“The incumbent government engaged the IPPs for revising the electricity tariff. When there will be low tariff, the electricity bills will reduce and people will get relief,” he added.
In the past, he said, costly agreements were made with IPPs which put heavy burden on people.
According to a report published in April this year, the government moved towards reopening power tariff agreements with older IPPs as part of efforts to reduce electricity tariff.
It said the terms of reference (TOR) of the technical committee led by Special Assistant to the Prime Minister on Power Division Shahzad Qasim set to the IPPs were very comprehensive and sought to deliberate almost all elements of the tariffs signed under the power purchase agreements.
The government team led by Energy Minister Omar Ayub Khan had also held separate meetings with sponsors of about 50 renewable energy projects. The IPPs had been told that the technical committee would engage with IPPs’ lenders to “examine various elements of the tariff”.
Qureshi said water reservoirs were constructed in the 60’s during President Ayub Khan’s era.
“Now, it is the PTI government which has taken practical steps for constructing different dams including Diamer-Bhasha Dam, Dasu Dam and Munda Dam. Work on these projects is in progress at a rapid pace. Chinese contractors are working on the dams sites with heavy machinery. “
He noted that the Diamer-Bhasha Dam would be completed in seven years. “I don’t know who would be in power after seven years but the project initiated by the incumbent PTI government would surely serve the masses,” he said.
Qureshi said the government is also focusing on solar and wind energy systems. When there will be electricity from solar, hydel and wind sources, then it would reduce electricity cost too, he added.
He said recently an agreement for producing 100 megawatts from solar energy was inked with a company and under this agreement the cost of per unit electricity would be 3.7 cents only. “In past, the solar energy cost was 18 cents per unit,” he said.
Qureshi said the new grid station would facilitate over 40,000 new consumers including domestic, commercial, industrial and tube-wells. The voltage will also improve in the area, not only for new consumers but existing consumers also.
“As many as 14 feeders would be linked to this new grid station. It would also help generate employment opportunities because over 500 industrial consumers would be provided electricity from this grid station,” the minister added.
The foreign minister, who also hails from South Punjab, also inaugurated Rs520 million worth New Shah Shams Disposal Station in Multan. Speaking on the occasion, he said the PTI led federal government has made “significant strides” towards fulfilling its electoral promise for creation of South Punjab province.
“The PTI government has started implementing the promises it made in its election manifesto, including creation of South Punjab province.
“We have started the process of transfer of powers, establishment of the South Punjab Secretariat and appointment of officers. As of now, 16 departments are being shifted whose secretaries will sit in Multan and Bahawalpur,” Qureshi added.
Multan Development Authority (MDA) Chairman Mian Jamil Ahmed, MDA former chairman Rana Abdul Jabbar and Water and Sanitation Agency (Wasa) Managing Director Nasir Iqbal were among those who attended the ceremony.
He said the government will now set up a civil secretariat in Multan while temporary offices for secretaries have been set up in South Punjab. A request for acquisition of hundreds of kanal of government land near the Judicial Complex has been moved for a permanent secretariat, he added.
“Earlier, we used to go to Lahore – Punjab’s provincial capital – to get approval for project cases and funds. Today, the decision for the entire South Punjab is taken in Multan,” he added.
