• District Government Tharparkar

• Private Power and Infrastructure Board (PPIB)

Vision of Zila Nazim, Arbab Anwar
Tharparkar enters into a new phase of Development

In accordance with Rule 32 (I) & (III) of Budget Rule 2002, the undersigned being head of District Government Tharparkar is providing vision and set the development priorities sector wise as under during the current financial year 2008-09.

Health Sector

During the current fiscal year 2007-08 an amount of Rs. 237.603 million kept for Health Sector for Development and Non-Development activities, during the fiscal year following targets have been achieved. (Table 1)

The next financial year 2008-09 the District Government will be provided maximum Health facilities to the people of the District, the sufficient funds will be kept for this purpose.

The aims and objectives for the Health Department are as under:

1.     Free vaccination of snake bites, anti rabies and other contingent disease (Hepatitis B&C).

2.     Provide all medical facilities to the Hospital of District Tharparkar.

3.     Awareness campaign against Hepatitis B, C and HIV to the people of Tharparkar.

4.     Better Planning of Hospital buildings and purchasing of quality drugs.

5.     The committee will be formulated to ensure providing basic facilities and advance treatment of T.B. in the District. The committee will present reports to the Zila Nazim, District Coordination Officer and website of District Tharparkar on monthly basis. 

All levels of District Government to coordinate and participate in implementing the vision. 

Education Sector

The current fiscal year 2007-08 amount of Rs. 1171.202 million has been invested in the Education Department. The following targets have been achieved during the year: (Table 2) 

The next financial year 2008-09 the District Government will be provide 39% out of total allocation to Education Sector for the purpose of providing quality of education, improve teacher moral and motivation, identify the professional needs and necessary resources to support teachers, in their professional development and career progression.

Information Technology will be introduced in schools & colleges of District Tharparkar to support students.

New schools will be constructed in remote areas of District Tharparkar.

New libraries will be established in District Tharparkar providing all facilities like computer, internet etc.

The committee will be constituted to check planning and preparation, monitoring and review discussion as well as implementation plan, quality assurance process and appropriate training of teachers. All tears of District Government to coordinate and participate in implementing the vision. 

Agriculture Sector

The funds amounting to Rs. 20.667 million have been allocated for Agriculture Sector during the fiscal year 2007-08.

The following major schemes will be completed during the year:

1.    Installation of Electric Water Lifting Machines @ Progressive Farmer Filed in District Tharparkar.

2.    Establishment of (03 Unit) Cattle Colonies in District Tharparkar.

3.    Construction of Veterinary Centers (10 Units) in District Tharparkar.

4.    Honey Bee keeping on Farmers Field in District Tharparkar.

5.    Strengthening of Two Veterinary Mobile Units in District Tharparkar.

The next financial year 2008-09, Agriculture Sector goal is to contribute to increased growth and reduced rural poverty and enhanced food security in days of drought situation.

The Agriculture Department of District Tharparkar will provide better facilities to farmers regarding agriculture knowledge through print media/ seminars. Introduce modern technologies to convert desert land for cultivation introducing irrigation dip system, marketing system and infrastructure.

The following sector plans will be continual:

1.     Development projects for Agriculture extension and research.

2.     Establishment of small dairy farms.

3.     Breed improvement in livestock.

4.     Tree plantation.

5.     Establishment of Poultry Farms, Sheep and Goat rearing farms. The committee will be constituted to monitor sector targets and check the vision. 

Community Development Sector

During the current fiscal year 2007-08, the funds amounting to Rs. 12.500 million provided to Community Development Sector for providing basic facilities to the community and to improve the quality of Vocational Institution as well as organizing seminars, celebrating various prominent days in District and participation in provincial and national level. During current financial year following schemes of sector will be completed:

1.     Community Center

2.     2 Health Schemes

3.     Construction of 3 Roads

4.     Construction of Mother & Childcare Center

5.     Construction of 2 Musafarkhana

6.     Construction of Government House in Nagarparkar

7.     Construction of Socio-Economic Center in Tharparkar

8.     Construction of Gymkhana Club at Gadhi Bhit in Mithi Town 

The next financial year 2008-09, the role of Community Development Department of District Tharparkar is to initiative in enabling local communities to exert control over the conditions that effect their lives. Efforts should be taken for providing economic security in low-income communities through CCBs. A campaign will be stated for awareness of CCBs to the people of District Tharparkar. Sector allocation of CCBs will be made in next financial year.

Computerized Data Base of registration of CCBs, distribution of funds and scheme information will be introduced.

Works & Services Sector

During the current fiscal year 2008-09, the funds amounting to Rs. 660 million have been provided for Works and Services Department for construction of Roads and other civil works. The following schemes have been completed: 

Roads:

Total 338 KMs 

Buildings:

Agriculture Institutions 14

PP&H Institutions 23

Health Institutions 07

Social Welfare Institutions 04  

Schools:

Up-gradation of High School to Higher Secondary (01 Unit)

Up-gradation of Middle to High School (06 Unit)

Up-gradation of Primary to Middle School (10 Unit)

One/Two Roomed Shelter-less School (300 Nos)

Additional Classrooms in Schools (100 Nos)

Provision of missing facilities with compound wall (50 Units)

Roads are playing vital role of District economy which is mainly used for transporting agriculture production and good to domestic markets. The next financial year 2008-09, District Government will kept 35% of overall allocation to Works & Services Department for Roads, Buildings and Education Works. The quality of work will be monitored. All levels of District Government to coordinate and participate in implementing the vision.

Water Supply & Drainage:

During the Current Financial Year 2007-08 an amount of Rs. 113.31 million are allocated for Water Supply and Drainage system in city area of Mithi and Taluka Headquarters and also portable water will be provided by Digging of Tube-well/Wells to keep the healthy conditions of population of District Tharparkar.

During the next financial year an amount of Rs. 150.00 (M) will be allocated to Water Supply and Drainage Sector for providing better facilities through following schemes:

Digging of Tube-wells

Digging of Wells

Construction of Water Storage Tanks

Provision of Street Light in main Cities

Extension of Water Supply Schemes Mithi - Islamkot, Sunhi Ghoni - Diplo, Khetlari - Diplo and Naukot - Mithi.

Construction of CC Roads in Main Cities.

Construction of Park in Mithi Town to provide re-creational activities to the citizen/ children. 

Information Technology:

During the Current Financial Year 2007-08 the funds amounting to Rs. 12.000 million has been provided for introduction of Information Technology in District Tharparkar for following activities:

Scheme will support timely activities and reports of the District.

Web site of District Tharparkar.

Digitalization of textbooks from class (I-XII).

Introduction of Information Technology in District Government and Schools/ Colleges of District Tharparkar.

Database of Public Sector Development Program and Community Board.

During the year 2008-09 the trainings will be imparted to the officers/ officials of group of offices and Taluka Nazims, Union Council Nazims TMOs and Secretaries of all Union Councils regarding database and usage of computers at Union Council level.

All the TMAs and UCs will be connected with the District Government through database. 

CCBs:

During the Current Financial Year 2007-08 an amount of Rs. 75.00 million are allocated to the scheme proposed by various CCBs in following Sector:

Health Sector: 05.000 million

Education Sector: 05.000 million

Roads Sector: 35.000 million

Agriculture Sector: 05.000 million

Community Development: 20.000 million

Water Supply 8v Drainage: 05.000 million 

During next financial year 2008-09 District Government Tharparkar will allocate 25% of Total District Development Fund for schemes proposed by CCB stakeholders. The Sector-wise position is as under:

Health Sector 10%

Education Sector 10%

Roads Sector 35%

Agriculture Sector 5%

Community Development 25%

Water Supply & Drainage 10%

Information Technology 2%

Other Special Services 3% 

The undersigned is hopeful from the working relationship of all the District Government functionaries to achieve their targets in due course of time for providing better facilities to the people of District Tharparkar in future.

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How Sindh can help eliminate the impending power crisis in Pakistan?

By Asif Ali Abro
Senior Manager (Tharmal) PPIB

Whether it’s the creation of Pakistan, or whether it’s the contribution in revenue generation Sindh’s role has always been that of a buttress. Once again Sindh’s contribution is tremendously required for the better future of Pakistan. This time it’s the ’power crisis’ from which Sindh has to bail out the country and its people.

Our country’s energy requirements are growing exponentially not only because of the unprecedented recent economic boom but also due to unmatched population growth rate. Currently, we have only been able to provide electricity to approximately half of our country’s population. If we were to provide electricity to every citizen of the country the challenge would become simply too difficult to surmount. Even if we set our target to meet the electricity growth as projected by WAPDA in its medium term development framework (MTDF) the challenge would still be tough in terms of arranging and affording the fuel for new projected power generation to meet the power growth under MTDF. The MTDF require more than 31,000 MW net available generation by year 2015. As no additional gas is available beyond year 2010-11 reliance would again have to be made on oil, if additional hydel or coal generation is not made. Currently Private Power & Infrastructure Board (PPIB), who is the one-stop organization of Government of Pakistan for attracting private power generation in the country, is processing 62 expressions of interest (EOI) with a cumulative capacity of 16800 MW. These EOIs which are at various stages of processing contain 23 oil based proposals with cumulative capacity of 4830 MW. At 45% thermal efficiency, calorific value of 40792 BTU/Kg, plant factor of 60% the annual requirements for furnace oil are estimated as 206444 tonnes. The negative impact on economy and national exchequer of importing furnace oil in such huge quantities when crude oil prices are expecting to touch US$ 100 per barrel can be assessed by every one. In fact it is not a matter that we require electricity, but the fact is that we require ’affordable’ electricity otherwise we will not be able to compete with our competitors in the world market for our exports. The situation may appear even worse if we peep in the future beyond 2015. MTDF figures as given by WAPDA provide power demand projection upto year 2016-17. If we further extrapolate the figures of MTDF at a normal power growth rate of 7% the projected total power demand in year 2030 would be above 87,000 MW (see Table A-1).

If gas is not available for targeted 31000 MW in year 2015 and oil cannot be relied upon as fuel because of its exorbitant high prices then the situation can never be better for the targeted total generation of more than 87000 MW. Even some bigger dams would not work for such target. In such gloomy situation coal reserves of Sindh provides a ray of hope for brighter future.

Out of 185 billion tonne coal reserves of Pakistan, 175 billion tonnes are in the province of Sindh. Although, these 175 billion tonnes are of lignite type but they are very much suitable for power generation. Thar reserves are more than enough to meet the target of more than 87000 MW in year 2030.

PPIB who along with the Sindh Coal Authority is currently making efforts to develop private power projects based on coal reserves of Sindh, is processing four coal based expressions of interest (EOIs) of cumulative capacity of 1550 MW. Details of which are given in Table A-2

PPIB is processing these EOIs pursuant to the provisions of Power Generation Policy 2002, on the concept of Integrated Mining cum Power Project. Under the concept of Integrated Mining cum Power Project the private sector investor or group of investors have to develop the mine, extract the coal from it, develop the power project and operate it for the term of the project which may extend upto 30 years.

PPIB is hopeful that the 1550 MW generation all based on coal from Sindh province help reduce the looming crisis. However, Sindh’s coal has to contribute more than the 1550 MW. As pointed out that by year 2030 Pakistan’s power generation requirement would be more than 87000 MW, then Sindh’s coal would have to come in a big to the rescue of Pakistani’s from the dark shadows. That would require some comprehensive planning revolving around the concept of ’Thinking Big’. ’Thinking Big’ entails development of a Super Mega Power Center at Thar in the province of Sindh. Nevertheless, exploiting Thar lignite reserves is not an easy task. First and foremost problem with Thar is that no conventional mining is possible there. The coal is minable only through open pit excavation which in turn is not an easy task given that the over burden ratio is too big and the overburden consists of loose sand. Furthermore, infrastructure including potable and cooling water is also not available. Lack of expertise in open pit coal mining on large scale and power generation on lignite are yet other hindrances in the development of Thar coal. Policy provisions available in Power Generation Policy 2002 being implemented by PPIB is also generic in nature and does not provide detailed framework and support for developing a Super Mega Power Center at Thar. For development of coal projects, the Power Policy 2002 revolves around the concept of ’integrated coal mining cum power projects. Whereas development of Super Mega Power Center require the concept of ’Integrated Approach’ instead of integrated coal mining cum power project. The Integrated Approach entails without limitation (i) capacity and skill development, (ii) infrastructure development as social projects without loading cost therefor on power tariff, (iii) mining of Thar coal under public-private program with guarantees to miners for off-take of certain coal quantum, (iv) power generation in private sector in doable sizes / units with guarantees for coal supply, and (v) transmission of power to load centers again through public  private partnership. All the five constituents can be done simultaneously but discreetly separately. The proposed functions must be separate because when we talk about Super Mega Power Center every constituent of it would itself be very big in its own right. For example development of infrastructure is a daunting task. Thar is a remote desert area where until recently simple jeep-able tracks were the only things available in the name of roads. The people who have visited Thar know a term ’Kaykara’ which is still in use for traveling by the local Thari people. The Kaykara in fact is a variant of truck which can ply in sands of Thar. As regards water availability, people visiting Thar would have seen womenfolk moving in queues for long distances, while pitchers on their heads and hands to fetch water for home and hearth. At other instances tribes can be seen migrating in search of water when there is no rainfall because sustenance of their lives and their cattle’s lives depend primarily on the scanty rainfall. The earnest prayers of Tharis usually are the prayers about rainfall. Their folk songs consist of either prayers for the rain or the thanksgivings when the rainfall occurred. Transporting water to Thar would require either remodeling the Nara Canal irrigation system off-taking from Sukkur Barrage, or constructing an altogether new river from Kotri Barrage.

On the other hand the Think Big concept requires developing a bigger mine for supporting the bigger sized power units. Although economies of scale would support developing bigger size mine but arranging finances and surmounting the technical challenges would not be an easy task. To support financing availability of subordinated loans would be a great help but on its turn creating, managing and operating that fund would also be a big task, which must be accomplished through a specialist group independent from the coal miners or the power producers. Mining in sizzling temperatures and handling huge quantities of sand stripped from the overburden on coal seams are the challenges which can also be accomplished by the specialist groups having no direct concern for the power generation. Once the feasibility studies are available and coal supplies are guaranteed, attracting investment for 600 MW units from different private sector entrepreneurs would be then still be a huge but relatively easier task given the expertise of PPIB in attracting investment in private sector. Although, these functions are to be carried out independently but there must be coherence in the efforts.

To accomplish these discreetly separate functions in a coordinated matter a comprehensive separate Coal Power Policy would be required. However, any such Coal Power Policy would only be successful if the international donor agencies, governments of Pakistan and Sindh work hand in hand and create a fund for the skill/capacity development, creation of subordinated loan, and conduct of feasibility studies.

The probable features of the Coal Power Policy may be summarized as given below:

Objective:

To Develop Thar as a Super Mega Power Center of upto 20,000 MW

Scope:  

Cover Capacity Development, Infrastructure development, Mining, Power Generation, Power Transmission. All four constituents shall be simultaneous but discreetly separate

Funds: 

International donors, GOP and GOS must place necessary funding to cover feasibility studies, projects under infrastructure part and create subordinated loan for mining work

Capacity Development:

It’s essential to develop capacity of institutions involved through trainings and visits of coal plants abroad

Infrastructure:

Projects such as roads, water supply, and other basic necessities would treated as Social projects: not to be loaded on power tariff; would be completed from the funds as described above

Mining:

To be developed through public-private partnership initially in two phases for a total of 6000 MW. Coal off-take may be guaranteed

Power Generation:

EOIs for 600 MW units can be invited initially upto 6000 MW. Coal supply may be guaranteed

Transmission:

Public-Private partnership may be encouraged to develop transmission line for each 50 km stretch upto load demand centers

By developing the Coal Power Policy in support of PPIB, Sindh would not only help rescue Pakistan in eliminating the impending power crisis but would also prove its never diminishing love for Pakistan.

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PPIB Powering the Economy of Pakistan

By Mohammad Yousuf Memon
Managing Director, PPIB

Private Power and Infrastructure Board acts as a one window facility for prospective investors, has been mandated to address the problem of electricity shortfalls in the country by introducing the private sector into the power sector of Pakistan. It provides support to investors in the private power sector on behalf of all ministries, departments and agencies of the GOP for the purposes of setting up of power projects.

Creation of PPIB

By 1994, the problem of power shortages had assumed such acute dimensions that power supply fell short of demand by almost 2000 MW during peak load hours resulting in frequent loadsheddings. Power Policy  1994 was announced, which comprised a comprehensive package of incentives to attract foreign direct investment (FDI) in private power generation projects and PPIB was created to facilitate investors and eliminate unnecessary delays in finalization and approval of projects and to facilitate interaction between the GOP and investors. This was a step towards a major transformation, as traditionally the responsibility of power generation in Pakistan had been with the two vertically integrated public sector utilities namely Water and Power Development Authority (WAPDA) and Karachi Electric Supply Corporation (KESC).

Track Record of PPIB

After announcement of the 1994 Power Policy, PPIB succeeded in attracting Foreign Direct Investment (FDI) worth US$ 4 Billion in only a few years. The world-renowned players of the international arena came to Pakistan and participated in establishing power complexes in the country. These include names like AES, El-Paso, Wartsilla, GE, Midlands Electricity, Coastal Power, Tenaska and Hawkins of USA, National Power UK, Siemens Germany,  ABB Switzerland, Mitsui Japan and TNB Malaysia. International funding agencies and recognized financial institutions like World Bank, IFC, US-Exim Bank, ABN Amro, EDC, Jexim Bank, ANZ, Tomen Japan, Bank of Tokyo and others keenly provided funding to projects, while export credits agencies also actively supported IPPs.   Resultantly, fourteen (14) IPPs with a total generation capacity of around 3,000 MW were commissioned, and are now providing power to the national grid. Hub Power Project which was organized prior to the announcement of the 1994 Power Policy was processed, and was fully functional by March 1997. At present, out of the total capacity of 19,400 MW in the country, around 5,800 MW of capacity is from the private sector, which is roughly one-third of the total power generation in Pakistan. This figure includes the 1,500 MW Kot Addu Power Plant, which was converted into an IPP through privatization.

Policy for Power Generation Projects 2002

With a view to address future power requirements, the GOP announced the Policy for Power Generation Projects 2002 (the “Policy”), which was further improved lately with certain additions to make it more investor friendly. The Policy is a reflection of the radical reforms of the Government of Pakistan to improve the overall economy and the investment climate in the country The Prime Minister, Shaukat Aziz who was the Minister of Finance at that time, led these reforms under the dynamic leadership of President Pervez Musharraf.

This policy contains a clear set of incentives together with a regulatory regime that effectively provide a roadmap to attract the much needed investment in power generation.

Current Achievements

All economic indicators of the country have improved tremendously, and a rising economic growth rate can be witnessed. Since power is the prime mover of economy, the growing economic activities have triggered the need for more power.  The 2002 power policy was accepted with open arms by the local and foreign investors. It is encouraging to note that this time local investors and regional players are very active which again a good omen for the long term stability of the sector.

PPIB is currently processing sixty two (62) multiple fuel (Oil, Coal, gas & Hydel) power projects having a cumulative capacity of 16,790 MW which are expected to be commissioned from year 2008 to 2016, envisaging an investment of about US$ 15 billion. Out of these, Letters of Interest (LoIs) have been issued to 33 projects with a cumulative capacity of 9,276 MW, Letters of support (LoSs) have been issued to 14 projects totaling 2,590 MW, while Implementation Agreements (IAs) have been signed with 12 projects of 2,337 MW  out of these 9 IAs have been signed just in the last four months. A number of companies have also concluded the Direct Implementation Agreements with their lenders, while five IPPs, other project sponsors are aggressively working to achieve financial close. PPIB is doing its utmost to support the investors, and likewise project sponsors are trying their best to achieve various milestones towards the commissioning of projects. While we are expecting a larger volume of megawatts in the next three years, it can be very safely said that 2,575 MW from thirteen projects will be available to the national grid by the year 2010. Out of this 569 MW will be commissioned next year, while 1,447 MW and 559 MW are expected to be injected into the power system in 2009 and 2010 respectively. This I am proud to state, translates into US$ 2 billion of investment through the private sector

Areas of Focus  Treasure of Opportunities  Hydro/Coal Hydropower

The All Mighty Allah has blessed our country with enormous natural resources of which water and coal are the ones which can provide us enormous wealth in the shape of electricity  the prime mover of an economy. The potential of hydropower in Pakistan is around 41,000 MW, and 20,000 of which is considered to be economically viable. Unfortunately out of this only about 15% has been tapped and being used to generate power.

In its current portfolio of 62 projects being processed by PPIB, twenty-one projects with a cumulative capacity of 5,138 MW are hydel. To be located in the areas of NWFP and AJK, these environmentally friendly projects will provide clean energy. There has been a recent breakthrough where the IA has also been signed with the 84 MW New Bong hydel power project which is the first private hydropower project in the country to make such breakthrough, and will make way to other 20 hydropower projects in the pipeline. A number of projects have completed bankable feasibilities and project agreements prepared on international standards with investors friendly incentives and concessions shall be signed in near future. The government has recently approved a rationalized tariff of 5.8 ¢/kWh for hydropower projects which will give further fillip to investment in this sector.

Coal Based Power Generation

Coal is another wealth that our country has been bestowed with. Total coal reserves in Pakistan are estimated to be around 185 Billion tones, mostly concentrated in the province of Sindh, with the main concentration of 175.5 billion tones in Thar alone. Smaller deposits of coal are available in Lakhra, Sondha-Jheruk and other parts of the country. It is an estimate that even half of these deposits are properly exploited it will translate into a power generation of 100,000 MW for the next 30 years.

Power generation through coal may also require the development of the related infrastructure through public-private partnership. We are optimistic that very good projects based on coal will materialize in the future. Currently four projects totaling 1,550 MW are being processed. These include 150 MW Habibullah Energy at Ghotki, 200 MW Dadabhoy Project at Jherruk-Sonda, 200 MW Lakhra Project by Fateh Group and 1000 MW Hassan Associates Project at Thar. Besides these two more projects based on imported coal of 1000 MW each by AES and Mitsui respectively will be located near Karachi. The imported coal is a cheap substitute of imported oil, and will be instrumental in transferring technology into the country and help build up local skills which is again very important for exploitation of local coal resources. Project agreements with the assistance of multilateral banks are being prepared in power generation based on indigenous and imported coal.

PPIB welcomes the potential investors with open arms to be partners with us for our mutual benefit, and help us in powering the nation.

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