The Central Power Purchasing Agency''s (CPPA) Board of Directors (BoD) on Wednesday held its first meeting to discuss different issues of the company. Secretary, Water and Power, Imtiaz Kazi, presided over the meeting. The CPPA will replace Pakistan Electric Power Company (Pepco) after completion of legal formalities and approval of the Prime Minister.
The International Monetary Fund (IMF) has recently criticised the economic managers for not completing power sector reforms as per understanding with the international financial institutions. CPPA''s Board of Directors resolved that all prerequisites necessary to commence business of the company need to be fulfilled to make it a fully functional organisation.
The Board of Directors has constituted two subcommittees concerning technical and human resource matters of the company. CPPA (Guarantee) is a company created to deal with the core functions of transaction of sale and purchase between power generation companies (gencos) in accordance with Nepra regulations. A couple of days ago, Pepco''s BoD approved a resolution to dissolve the company immediately.
Pepco has already transferred the administrative and financial powers of the company to the National Transmission and Dispatch Company (NTDC), which will be temporarily looking after the work until its functions are transferred to the Central Power Purchasing Agency (CPPA). Energy sector analysts are of the view that Pepco''s dissolution will enable the government to qualify for $2 billion loan ($1 billion each from World Bank and ADB).