PAKISTAN: Government shelves power projects

26 July 1996

The local Fauji Electric Power Company (Fepco) has said that the government has not provided the final approval needed for its oilfired power plant in Baluchistan. Industry sources say that the government has also shelved a project to be built by Enron Corporation of the US.

The news confirms earlier doubts that the government could start to turn projects down as more schemes than are necessary to meet the country's power requirements start to take shape. Project sources say that more projects could be cancelled by the government.

The 1993-98 economic development plan estimated requirements for the period at 3,500 MW. Projects with capacity totalling 7,020 MW were granted letters of support by the government. A Water & Power Ministry official declined to comment on the Fepco and Enron projects but stated that the ministry expects the total capacity of projects which reach financial close to be roughly equivalent to the required 3,500 MW. He also commented that projects which fail to meet government deadlines for financial close will not be approved. The official said the next development plan, spanning 1998-2003, will favour power projects using indigenous fuels such as coal and low BTU gas. Both the cancelled projects planned to use imported oil (MEED 5:7:96).

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