Aptma proposes setting up of Energy Infrastructure Development Authority

All Pakistan Textile Mills Association (Aptma) has proposed to set up Energy Infrastructure Development Authority to the federal government on the basis of public private partnership, representing leading energy consumers to fast track energy generation projects.
Sources said the Aptma leadership has put forward the proposal in a meeting held two days back with President Asif Ali Zardari in the chair. The meeting was convened to prepare Energy Vision 2015 on war footings to overcome energy crisis in the country. According to the sources, the Aptma delegation has underscored downward revision of the mark up rate, as a high mark up rate of 14 percent is hindering private sector investment in energy sector. Sources said the Aptma delegation made clear that investments cannot take place at 14 percent mark up; therefore, an early downward revision is need of the hour.
It may be noted that Pakistan is losing fast on the path to industrialisation on account of the growing shortage of energy both gas and electricity and likely to pay heavy price if some out of the box solutions on war footing basis are not taken with immediate effect.
The Aptma vision on energy 2015 has visualised putting up of 6000MW electricity based on indigenous raw material like coal, gas and hydel (2000MW each by 2015) to ensure energy security as well as its affordability. This initiative involves a cost of $6 billion in three years. The industry sources said that there is an urgent need to secure, raise, funds to materialise this vision. For instance, the gas based electricity generation projects be established on new gas finds near the source. Similarly, coal gasification or coal-based electricity generation projects be conceptualise near the coal fields and the run of the river and canal head projects, small reservoirs may be expedited to meet growing electricity shortage.
According to the industry circles, the private sector is ready to invest. However the implementation of the project at abnormally high interest rate of 14 percent is not possible. Therefore, the interest rate should immediately be reduced to the level not above the five percent to allure private sector investment for these vital projects.