The Ministry for Water and Power Syed Naveed Qamar has said that the private sector contractors would be used to enhance the poor levels of efficiency of public sector power generation companies (GENCOs). He stated this while chairing a meeting of the Private Power and Infrastructure Board (PPIB).
He stressed that private sector operation and maintenance contractors would be inducted to make GENCOs run more efficiently and to make them give maximum output. With the passage of time, electricity generating capacity of GENCOs has depreciated with regards to their originally installed capacity resulting in dismally low output.
After enhancement of GENCOs, an additional 2,000 MW would be made available to the national grid. The decision to induct private sector contractors is part of efforts to improve the current power deficit through efficiently managing the system, besides adding more megawatts through new projects. The other initiative being planned includes conversion of existing thermal power stations to cheaper fuels like coal and LNG.
The minister said that while construction of thermal power projects was a short term solution, government was prioritising local resources like coal and hydropower. The government would provide full support to the investors for these projects. He stated that to make electricity affordable, the use of indigenous resource like hydroelectricity and Thar coal was being stressed upon.
PPIB managing director informed the board that under the Policy for Power Generation 2002, standardised security agreements for coal based power generation IPPs have been prepared in consultation with relevant stakeholders. PPIB have approved the rules and submitted to ECC for approval.
