Urges power companies to improve operations; says Rs15bn reserved
for next financial year to pay dues of Hesco, Sepco and KE
Breaking with tradition, Sindh’s chief minister spoke about the electricity crisis prevalent across the country before he commenced his budget speech in the provincial legislature on Monday.
CM Syed Murad Ali Shah told the House that the people of Sindh were subjected to frequent load-shedding and unannounced power cuts despite the fact that the province produced 70 per cent of the gas in the country and had cleared all of its outstanding electricity dues.
Shah said that after reconciliation of the billed amount, the Sindh government had paid Rs27 billion to the Hyderabad Electric Supply Company (Hesco) and the Sukkur Electric Power Company (Sepco).
The power distribution companies need to improve their operations to provide relief to the people of the province, otherwise the government will set up its own transmission and distribution system, he added.
He showed the Sindh Assembly the no-demand certificate issued to the provincial government after it had cleared all its electricity dues payable to Hesco and Sepco in February.
Budget speech
The CM, who also holds the portfolio of the finance department, said during his budget speech that the people of Karachi were suffering because of the KE’s erratic operations.
He said that during the fiscal year 2016-17 the major achievements in the energy sector included the 100MW Sindh Nooriabad Power Company set up through public-private partnership. He proudly added that the plant was fully functional and contributing to mitigating power shortages in the metropolis.
Regarding the establishment of the Sindh Transmission & Dispatch Company, he said it was the first-ever transmission line set up by any provincial government of the country.
He added that 132kV double circuit from Nooriabad to Karachi was successfully laid out for Rs1.95 billion to supply 100MW from the Nooriabad power plant to the KE.
“Wind power projects in the province have added 477MW to the national grid. The total installed capacity of the wind power projects now stands at 785MW. It will be enhanced to 1,085MW in the next year.”
CM Shah said that in accordance with an agreement with Hesco and Sepco, the outstanding liabilities amounting to Rs27.4 billion had been cleared, adding that the outstanding liabilities of the KE worth Rs13 billion had also been cleared.
He said Keti Bandar and the power park had been included in the China-Pakistan Economic Corridor, adding that drawing up of a detailed bankable feasibility was under way. He added that the current monthly average billing of Rs1.1 billion was being disbursed regularly to the power distribution companies. “Some 6,907 villages were electrified within Hesco, Sepco and the KE for Rs8.479 billion. Electrification of 1,170 villages for Rs5.994 billion is under way.”
The chief executive said that for the next financial year Rs15 billion had been reserved for paying electricity dues of Hesco, Sepco and the KE.
He added that the Thar coal project in Block-II was progressing according to schedule, and that the Sindh Engro Coal Mining Company had removed 35 per cent of the overburden from the mine.
“The company is now working to expand the coal mine to 22 million tonnes per annum and generate 2,600MW by 2021. To support the Thar coal infrastructure a new four-lane bridge over the Indus River has been completed near Thatta-Sujawal in a record period of 18 months.”
On the subject of major initiatives near completion in the Thar region, he mentioned the construction of the 16.5-billion-rupee road network for movement of heavy machinery from Thatta to the Thar coalfields.
He said the effluent and mine water disposal system would be completed shortly for Rs6.7 billion, adding that the project for providing water to Thar’s power plants from the Left Bank Outfall Drain would cost Rs845.59 million and construction of the Islamkot airport Rs1.5 billion.
Alternative energy
The CM said that some important alternative energy projects had been approved, including establishment of 35 wind power plants for generating 2,685MW through independent power producers (IPPs).
“Some 24 solar power plants of 1,500MW are being established through IPPs. Two 24MW run-of-the-river power generation projects are also being built. I have allocated 18,251 acres for 18 wind power projects and 15 solar power schemes.”
Electrification initiatives
Shah said electrification of 285 primary health facilities in Tharparkar, Shaheed Benazirabad, Umerkot, Sanghar, Kashmore and Kambar districts through 352 solar photovoltaic schemes for Rs454 million had been taken up.
Two hundred and thirteen domestic biogas plants are also to be provided to potential consumers in Mirpurkhas, Badin, Sanghar and the rural areas of Karachi division, he added.
He said the 13-billion-rupee World Bank-funded Sindh Renewable Energy Development Project will be rolled out during the next fiscal year, adding that the Sindh administration’s share in the scheme was Rs2.6 billion.”
The chief executive said off-grid village electrification, urban rooftop photovoltaic and solar photovoltaic demonstration plants would be established through the scheme, for which Rs500 million would be provided.