Four Gencos to go to private managements: holding company formed to expedite process

The government on Thursday constituted a holding company having representation of reputable persons from private sector on its Board to accelerate the process of giving four generation companies (Gencos) to the private management with a view to improving the efficiency of power sector, it is learnt.
Sources said the names for Board of Directors of holding companies have been finalised and would be submitted to Prime Minister Syed Yousuf Raza Gilani for approval. They said the Board of the holding company would enjoy complete financial and administrative authority in taking decisions to give confidence to the people and donors that there was normal business in power sector. The Chief Executive Officers (CEOs) of Gencos would be appointed by the new board of the holding company and the CCoR would approve appointments.
The government has also decided to dissolve Pakistan Electric Power Company (Pepco) by October 30, 2011 and Central Power Purchasing Agency (CPPA) would replace Pepco while majority of members in the new board of CPPA would be from private sector.
Sources said the government has decided to appoint the Chief Executive Officers (CEOs) of eight distribution companies in the next three days and candidates would be finalised from among 200 aspirants after interviews starting (today) Friday. The designed measures would minimise the role of ministries in power sector. According to a statement, the meeting of CCoR presided over by Minister for Finance Dr Abdul Hafeez Sheikh decided to accelerate structural reforms in power sector under the Power Sector Reforms Plan 2010, finalised by the CCoR.
The committee discussed in detail the reconstitution of the Board of Directors (BoDs) of power sector companies. After due deliberations, the CCoR finalised the names of BoDs of Genco Holding Company for four Gencos and Sukkur Electric Power Company (Sepco).
The CCoR also deliberated the setting up of Central Power Purchase Authority (CPPA) and its BoDs. They decided that two representatives from government side, two from private sector, two from distribution companies and two from consumers side would be included in BoDs. The committee also discussed the appointments of CEOs in Discos. It was directed that the appointments of CEOs in Discos be finalised on an urgent basis.
Earlier, Federal Minister for Finance & Economic Affairs, Dr Abdul Hafeez Sheikh had a meeting with European Commission Ambassador Lars Gunnar Wigemark in which he appreciated the EU's assistance for development and natural disasters in Pakistan, acknowledging the EU support for enhanced market access to the EU and stressed for the package's early operationalisation as it is still under process at WTO. He urged the EU's support for GSP for Pakistan and said that Pakistan wants more trade as it brings investment and create jobs. The minister gave an update to the ambassador on economic situation, fiscal position and relationship with the IMF. European Commission Ambassador discussed the progress on the implementation of Multi-annual Indicative Programme-II (MIP-II) signed in June 2011.