Govt to involve private sector for GENCOs efficiency

Our Staff Reporter ISLAMABAD - Private sector Operation and Maintenance (O&M) contractors will be inducted to make the public sector power generation companies (GENCOs) run more efficiently and to make them give maximum output. With passage of time the electricity generating capacity of the GENCOs has been declined from the originally installed capacity and out of that derated capacity, availability remains dismally low. After enhancement of GENCOs, additional about 2000 MW will be made available to the national grid. This was stated by the Minister for Water & Power Syed Naveed Qamar while chairing the 89th meeting of the Board of Private Power and Infrastructure Board (PPIB) held Wednesday. The decision of induction of private sector O&M contractors is one of the steps of present government to improve the current power deficit situation in the country through efficiently managing the system, besides adding more megawatts through new projects. The other major initiative being taken by the GoP in this context is the conversion of existing thermal power stations to cheaper fuels like coal, LNG etc. The Minister stated that while construction of thermal power projects was a short term solution, government is prioritising its local resources like coal and hydropower. In this regard the government is providing its full support to the investors. Qamar said that in order to make electricity affordable, a good energy mix is necessary, and therefore the use of indigenous resource like hydropower and our local coal at Thar, as well as imported coal is being stressed. The Managing Director PPIB informed the Board in this context that under Policy for Power Generation 2002, standardised security agreements for coal-based power generation IPPs have been prepared by PPIB in consultation with relevant stakeholders; the Board today approved the same for submission to the ECC for approval. The meeting was informed that so far twelve private power projects of more than 2,400MW have been commissioned since March 2009.