ISLAMABAD: In a major blow to the government, Tabish Gauhar, Special Assistant to Prime Minister on Power issues, has stepped down in a mysterious way just after being appointed 95 days back on October 1, 2020. Tabish was getting only one Re as he offered his services as SPAM on Power on honorary basis. This is the second resignation in a row. In November 2020, Prime Minister’s SAPM on Power, Syed Shahzad Qasim, tendered his resignation a few days after the prime minister asked him (Syed Shahzad Qasim) to focus on coordination of marketing and development of mineral resources.
Shahzad Qasim had resigned on personal grounds, said sources. The Cabinet Division issued a notification accepting the resignation of Shahzad Qasim, who was replaced by Tabish Gauhar as the premier’s special assistant in power – just three months after his appointment.
Apparently, Tabish tendered his resignation on the issue of how to deal with IPPs, which are in talks with the government’s MoUs Implementation Committee on payment mechanism to clear their dues of Rs452 billion. Tabish was reportedly insisting to adjust the amount of Rs136 billion that the government is to pay in the head of Late Payment Surcharge (LPS) against the amount of Rs45-52 billion in the same head that IPPs need to pay to PSO, OGDCL and Sui Gas utilities. He also wanted to have some relief from IPPs in LPS head. Ex-SECP Mohammad Ali report had identified Rs53 billion as excess profit mopped by some six IPPs. Tabish wanted to refer the issue to NEPRA for due diligence as to whether the excess profit was made or not and if it was proved that extra profit was made, then IPPs would have no option but to pay the extra profit. On these two issues, IPPs took the stance saying there is no mention in the MoUs that the government will adjust the amount of Rs136 billion which Power Division was to pay to IPPs in the head of LPS against the amount which IPPs are liable to pay in the same head to PSO, gas companies and OGDCL. And more importantly IPPs also indicated that they had not mopped up the excess profit of Rs53 billion, arguing under the 2002 power policy they got the tariff under PPAs, then how can some IPPs be blamed that they made the profit knowing the fact that all IPPs under 2002 power policy were given the same tariff. The IPPs are also fighting the case of extra profit in court.
The IPPs also took the stance saying under the PPAs, in case of any dispute such as excess profit, Arbitration Court is the forum to decide not the NEPRA. The implementation committee is also reported to have said that Tabish was becoming a hurdle in the smooth sailing process to convert the MoUs into amended PPAs. It would not allow anyone to sabotage the process as the MOUs’ life was only for six months that is to expire on February 12, 2020. The Implementation Commission also reported to have said that Tabish had adopted a stern stance on the said issues about IPPs, and he was not willing to show flexibility in his stance. Tabish also avoided attending the last meetings of the Implementation Committee with IPPs on payment mechanisms held on last Monday and Tuesday.
More importantly, sources close to Tabish, while quoting him, said that he wanted to play a larger role in the power sector. Tabish was also quoted as saying that there are many cooks in the power sector, which was why he was feeling that had become irrelevant. Nadeem Babar, SAPM on Petroleum, is now unofficially, according to sources, giving his input in talks of the Implementation Committee with IPPs to pave the way for signing of amended PPAs and he will now continue to give his inputs to materialize the deal well before February, 2020. The sources also said that wind IPPs also refused to sign MoUs.
The sources also said that Tabish was also heard saying that he faced resistance from within the system whenever he wanted to take some steps towards reforms.
According to top sources, Gauhar tendered his resignation through Whatsapp after being inaccessible for officials of the Power Division for the last seven days. His cell phone till the filing of the report was powered off. On Wednesday, when Saudi and UAE envoys held separate meetings with Energy Minister Omar Ayub Khan, Power Division officials tried to contact him many times to ensure Tabish attended the meeting with the ambassador of Saudi Arabia. But his phone was found powered off. SAPM on Petroleum Nadeem Nabar and SAPM on Power Tabish Gauhar were supposed to attend those meetings. Gauhar was not available. He last attended the office on Friday last (January 1, 2021) and since then his staff remained clueless about Tabish.
