Claiming to have spent over $ 1 billion, the K-Electric would be investing an additional $ 2 billion to enhance its capacity to serve the load-shedding-hit metropolis.
This was revealed by a KE spokesman while expressing the utility’s dismay at the “allegations” levelled against the company by Minister for Water and Power Khawaja Asif. The minister’s accusations, he said, were “baseless and clearly untrue”.
“Over the past several years, KE has invested over $ 1 billion for boosting its generation, transmission and distribution network,” the spokesman reminded the federal minister.
Furthermore, he said, the KE would invest an additional $ 2 billion to enhance our capacity to serve Karachi. He said while KE was receiving 650MW from the national grid through NTDC based on an agreement, which is also in place between GOP and regional power distributors for power supply, it was fully compliant with its obligations under the same and had paid Rs 278 billion to NTDC over the past five years as well as adjusted Rs 29 billion of arrears pending in 2008.
He said KE maintained that its privatization took place in accordance with all applicable laws and all relevant approvals were in place from the ECC, Cabinet and CCI. KE denied rumours that there was any move to transfer a strategic stake in the company to any Korean entity.
“KE is considered to be a pioneering corporate organisation as through our various policy initiatives, we have made a substantial contribution in countering the power crisis in Pakistan which has been recognised by international and independent organisations such as IFC, Financial Times as well as the State Bank of Pakistan,” the spokesman said.
The spokesperson said since the past three years KE was up to date on all monthly bills of SSGC as per the mutually agreed payment plan.
He added that in the past 30 months, KE had paid Rs 93.5 billion in respect of current bills as well as an additional amount of Rs 6.4 billion to adjust arrears.
He said, on the other hand, KE was owed more than Rs 111 billion by several federal and provincial government organisations. “Most noteworthy of which is KWSB where Rs 33.8 billion is outstanding till date,” the spokesman added.
He said KE was performing far better in comparison to state-run power suppliers elsewhere in the country and as a result of company’s effective policies and performance, Karachi has become the only city in Pakistan where all five industrial zones as well as 58 percent of the city is exempted from load-shedding.
At a time when the government and the prime minister was seeking to expand foreign investment in the power sector and privatise other state run power suppliers, no government representative should be seen to be undermining such efforts through baseless allegations against KE which is a successful international symbol of privatisation for Pakistan.
