CCI to be convened to discuss LNG

Sindh government''s serious reservations with respect to establishing two liquefied natural gas (LNG)-based power plants in Punjab and the proposed draft of LNG Policy 2015 have compelled the federal government to convene a Council of Common Interest (CCI) meeting, informed sources told Business Recorder. Sources added that the two projects (i) 1230 MW (Gross) combined cycle power plant project at Haveli Bahadur Shah, Jhang costing Rs 98.104 billion and (ii) 1223 MW (Gross) Combined Cycle Power Plant at Balloki, Kasur, Rs 92.336 billion were submitted to Ecnec by the Water and Power Ministry for approval.
In spite of the Sindh government expressing serious concerns on the planned LNG based power plants in Punjab during the Executive Committee of National Economic Council (Ecnec) held on February 17 the Finance Minister Ishaq Dar-led meeting nonetheless gave approval, in principle, to the 2453 MW LNG-based power plants. Sources said that Finance Minister Sindh Murad Ali Shah during the Ecnec meeting reportedly cited Article 154 of the Constitution, which refers to federal legislative list, the constitution of CCI and its meeting once in every 90 days to resolve differences on any issue between federation and provinces as constitutional requirements that the federal government had failed to meet.
Dar gave his approval, in principle, after a lengthy discussion and constituted a committee with senior officials of Water & Power, Petroleum & Natural Resources, Attorney General, Provincial Finance Ministers, and Federal Secretary Law with a request to meet within a week to resolve the issue of interpretation of Article 154 of Constitution.
Murad Ali Shah reportedly argued that gas was a provincial matter and any decision to this effect must be taken in a meeting of the CCI. However, the federal finance minister stated that LNG was being imported and was not locally produced. Sources further stated that Sindh government has also been complaining that federal government has been taking such decision at the forum of Economic Co-ordination Committee (ECC) of the Cabinet instead of placing them at the forum of CCI. As the provinces have no representation at the ECC, the federal government must bring these issues before the CCI for broader consensus or removing any discord.
Sources in the finance ministry stated that although population census is not on the agenda but is expected to be discussed during the CCI meeting. However, sources in finance ministry and official of Ministry of Inter-Provincial Co-ordination cited different dates for a CCI meeting. According to sources in finance ministry, CCI meeting would be held on February 26. Officials of IPC, however, stated that a meeting will be held on February 29, 2016.