Power sector corporatisation: Prime Minister gives ministries and Wapda a week for timetable

Prime Minister Shaukat Aziz has given one week to the concerned ministries and Wapda, for submission of the timetable of the power sector corporatisation, sources told Business Recorder. "The Prime Minister has sought a clear timetable, along with dates against each and every action required, within one week," said sources close to the meeting. The PM gave these directions to Minister for Water and Power Liaquat Ali Jatoi, Secretary Finance, and Wapda Chairman during briefing on issues relating to corporatisation of power sector here on Monday. The meeting had been called prior to meeting with World Bank Country Director John Wall, who had written a letter to the Secretary Finance about not fulfilling actions agreed for Poverty Reduction Support Credit-II (PRSC-II).
Sources said that the Prime Minister was not happy with the pace of progress, saying that a team effort was required to meet the deadline of one week, so that it could be conveyed to the World Bank.
Liaquat Ail Jatoi, whose directives had been ignored by Wapda on power sector corporatisation, was said to have taken the line against the utility in the meeting, sources said.
Prime Minister also heard reservations of World Bank team headed by the Country Director John Wall, who said that progress on the agreed actions was not satisfactory and some push was required from the top.
The Prime Minister informed the WB team that one week has been given to the concerned ministries, Wapda and Pepco for submission of a timetable for actions, which would be conveyed to the bank.
Sources said that Shaukat asked the World Bank to help prepare financial models for the Distribution companies (Discos) of Wapda, which was still far behind the anticipated progress.
The bank's team also took up issues, like lenders' consent for transfer of loans from Wapda to companies, handling of contracts with independent power producers and formulation of rules for Central Power Purchasing Agent (CPPA).
After meeting with the Prime Minister, Jatoi held an hour-long meeting with Secretary Water and Power Ashfaq Mahmood to finalise strategy to implement the directives of Prime Minister regarding corporatisation of power sector.
The World Bank's visiting energy sector mission also held a meeting with the Secretary Water and Power who assured them that differential power tariff would be finalised by July 15.
The WB team, sources said, was of the view that Wapda's lower staff has been allocated and transferred to the new entities but the transfer of officers has not yet been completed.
"Clearly, in the absence of full cadre of officers and managerial staff, the entities will face difficulties in operating in a fully empowered and responsive manner. We want clear deadline regarding the transfer of officers," the team said.