ADB audit report on rental power plants: Prime Minister assigns implementation to Asim

Prime Minister Yousaf Raza Gilani has entrusted Dr Asim Hussain, Minister for Petroleum and Natural Resources, with the responsibility of implementing Asian Development Bank''s (ADB) audit report on rental power plants (RPPs), after Water and Power Minister Naveed Qamar failed to comply with Cabinet decision.
"Cabinet has transferred the implementation of its decision taken on January 27, 2010 in respect of ADB audit report on RPPs from Water and Power Division to Petroleum and Natural Resources Division and advised the latter to expedite its implementation," official documents available with Business Recorder showed.
According to the documents, the Cabinet had endorsed the conclusions and recommendations suggested by the ADB.
The decision included: (i) eight RPPs (1257 MW inclusive of 101 MW for Larkana and Naudero package) at advanced stages of implementation be vigorously pursued; (ii) 6 RPPs (838 MW) not yet effective, be reviewed in context of legal terms before taking any further action; (iii) 5 RPPs not yet approved/signed be discontinued ;(iv) inconsistencies in contract be removed; (v) contract timelines be strictly enforced; (vi) commercial operation tests should be witnessed and certified by an internationally acceptable independent engineer; (vii) elimination of 100 percent load shedding during peak demand period is not viable option from the affordability perspective; (viii) integrated analysis for optimum use of available gas and new resources be aggressively perused for affordable power; (ix) new IPPs in pipeline, particularly gas-based, should not be delayed; (x) RPPs should be dispatched as " must run" plants 2012; and (xi) import trade policy should include quality control for old and used plants.
The issues of RPPs are still alive and Pakistan Electric Power Company (Pepco), which is scheduled to be disbanded by October 30, 2011, has proposed induction of two RPPs--Kamoki rental power plant and Sialkot rental power plant--in the system. Pepco is ready to pay 7 percent mobilisation advance to these plants from its own resources.
In August 2010, the Cabinet Division and Ministry of Water and Power had locked horns over the implementation status of cabinet decision as the latter had conveyed that the signed RPPs were at various stages of implementation and it may, therefore, not be realistic to re-open the signed agreements for removal of inconsistencies without harming/ delaying the projects.
Cabinet Division, however, maintained that the implementation status appeared to be a departure from the Cabinet decision.
When contacted, an official of Petroleum Ministry told this scribe that the Ministry has received the 27 January 2010 decision of the Cabinet, on which action would be taken.