NA passes law to facilitate investment in power sector

NAVEED BUTT

ISLAMABAD: The National Assembly on Friday passed 'The Private Power and Infrastructure Board Bill, 2010' for large-scale reforms in private sector to participate in power generation and to facilitate private investment in power sector, transforming it into a competitive power market in the country.

The NA also passed 'The Women in Distress and Detention Fund (Amendment) Bill, 2010' to transfer the fund from the Ministry of Law and Justice to Ministry of Human Rights for providing financial and legal assistance to women languishing in jails on account of different allegations and those who are faced with extreme hardship.

Minister for Water and Power Naveed Qamar moved the Bills for passage. The House passed the Bills with a majority.

According to 'statement of objects and reasons' of the "The Private Power and Infrastructure Board Bill, 2010," there is a need of large-scale reforms for private sector participation in power generation and related infrastructure development. The legal status of the Private Power and Infrastructure Board (PPIB) has already been called in question in litigation. In order to avoid legal complications, it is imperative to give PPIB legal status.

The Bill further said that there is also a shift in emphasis from thermal to hydel and coal-based power generation, and private investors are already showing interest in undertaking such projects. For this purpose, PPIB will be required to play a more proactive role in power sector, which is being transformed into a competitive power market in Pakistan.

There is growing realisation in power sector of Pakistan that for the envisioned objectives to promote, encourage and facilitate private investment in private power sector and for that matter to implement the Power Policy, a permanent statutory body must be created to fill in the current legal and administrative vacuum that is bringing about various technical, legal and administrative issues.

The object and reasons of the Bill say that it is expected that the draft statute will inspire private sector and public sector confidence in the authority, credibility, efficiency and permanence of PPIB.

"The donor agencies, while commending on the role/achievements of PPIB have, time and again said that PPIB should have a legal status. The Asian Development Bank (ADB) even made the "statutory status" of PPIB as one of the conditions of its multi- tranche financing facility extended to the government of Pakistan.

In the litigation cases the Supreme Court of Pakistan has also shown its serious concern as to PPIB's legal status and its powers to sue and be sued on its own name and for on behalf of President of Islamic Republic of Pakistan.

Similarly, according to statement of objects and reasons of 'The Women in Distress and Detention Fund (Amendment) Bill, 2010' Human Rights Wing, Ministry of Law, Justice and Human Rights Islamabad was administering the fund for women under the Act of Parliament. Now, Ministry of Human Rights has been established as separate entity from November 3, 2008 and the subject fund has been transferred to Ministry of Human Rights.

The bill also pointed out that this Ministry was not in a position to operate the fund without necessary amendment in 'Women in Distress and Detention Fund Act, 1996(XV of 1996)'. The Law and Justice Division got the Ordinance promulgated for redressal of issue and filling of the vacuum. The functionalisation of this fund is beneficial for all classes of women throughout the country.