Liabilities main issue in handing over of KE to Shanghai Electric: Senate body told

ISLAMABAD, April 2 (APP):Senate Standing Committee on Power Division Tuesday was informed that liabilities was main issue in further privatization of K-Electric to Shanghai Electric Power which was piled up to Rs125 billion over the period.

Briefing the Senate Panel which met with Fida Muhammad in the chair, Secretary Power Division Irfan Ali said public departments and companies including Sui Southern Gas Company (SSGC) and National Transmission and Dispatch Company owed Rs125 billion to the KE. He said mechanism had to be evolved to sort out liabilities issue.

The KE also owed some dues to the government departments, he added. He also suggested to appoint retired judge of Supreme Court for arbitration.

The process to hand over KE to Shanghai Power was stalled due to the liabilities issue, he added.

The secretary said, “We want honest and amicable solution to this issue.” He expressed the hope that the issue would be resolved shortly.

The committee was apprised that a total of 333 connections were provided to Afghans Refugee Camps in the country and an outstanding amount against the camps stood at Rs247 million.

Peshawar Electric Supply Company Chief, Dr Amjad Khan told the committee that single and three phase connections were provided to the camps and dues were pending against those camps which had been disbanded. The existing camps were regularly paying their bills, he added.

Discussing the issue of electricity connections given to Afghan Refugee Camps in the country, Senator Nauman Wazir Khattak was of the view that all connections must be allocated as per NEPRA rules and that bulk supply of electricity must be stopped to the camps.
 
Regarding inquiry into recovery of 600/650 stolen transformers of PESCO by FIA, the committee was told that transformers were stored in different places due to shortage of space in stores.

The secretary Power Division said transformers should be placed only in specified areas.

He also assured the committee that PEPCO team would conduct inquiry in this regard.

He said the power distribution companies would not collect any amount for repair of transformers and damage one would be replaced immediately.

The committee said the consumers were not being provided wire and pipes during installing new connection despite collecting charges from them and recommended that such collection under these heads should be stopped.

The committee also recommended that award of payment to owners of land acquired for the Suki Kinari Hydel Project must be doubled.

Discussing the implementation status of recommendations, the committee deliberated over the issue of reallocation of funds for the completion of electrification schemes of districts Mansehra and Kohat.

Secretary Power Division, Irfan Ali told the committee that electrification projects fall in under-developed areas and considering the quantum of work, the time period of three months, since the date of sanction of funds was not sufficient to complete the project during the FY 2017-18. 

He said according to an office memorandum dated 26 April, 2018 no money can be drawn for deposit into chest or transfer to company’s bank account after PY 2017-18. 

PESCO took up the matter with AGPR Sub Office Peshawar after which directions were conveyed in writing that no payment is to be authorized after the closure of the current Financial Year 2017-18 for the current year’s budget, he said. 

It was revealed that funds of Rs 229 million had been sanctioned for execution of power infrastructure schemes in various areas in district Mansehra and Abbotabad and Rs 298 million for rehabilitation of electricity distribution infrastructure in District Kohat.

The Committee was informed that out of these funds an amount of Rs 238 million has been utilized and the balance amount of Rs 112 million and Rs 60 million remain unutilized respectively. 

In view of the importance of the scheme, especially the development of Kohat, the Committee recommended that Rs 60 million out of Rs 298 million be paid immediately so that the project may be completed. 

The meeting was also attended by Senators Muhammad Akram, Mushahid Ullah Khan, Moula Bux Chandio, Shahmim Afridi, Nauman Wazir Khattak, Syed Mhammad Ali Shah, Dilawar Khan Lt. Gen (R) Salahuddin Tirmizi and senior officers of the Power Division, NTDC, TESCO, PEPCO, PESCO, K-Electric.