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The News

Published Date: Feb 3, 2011

AEDB clarifies report about dismal performance

attention is invited to Mr Khalid Mustafa’s 02 articles -cum-02 stories
appearing in The News of 26.12.2010 and 27.12.2010 titled “AEDB’s ugly
performance leads to worsening gas crises and AEDB produces 6 MW electricity in
07 years”.

Mustafa has quoted a US-AID study conducted by Arshad Abbasi for Sustainable
Development Policy Institute (SDPI) which concludes that Alternate Energy
Development Board (AEDB) of Ministry of Water and Power has emerged as another
sick organization. Mustafa has levelled a series of charges against AEDB and
Ministry of Water & Power in his said 02 stories.

The matter was taken up with AEDB and US-AID for detailed scrutiny of what
Mustafa unilaterally dilated upon without consulting CEO AEDB and official
spokesperson of Ministry of Water and Power for their views – in total
violation of professional ethics. The outcome is listed below :-

a. Mr. Rosario Chato Calderon, Senior Energy Advisor USAID Pakistan based in
American Embassy, Sector G-5, Diplomatic Enclave, Islamabad vide his email of
28.12.2010 addressed (copy attached) to Mr. Imran Ahmad, Director AEDB,
Islamabad has stated : “None of USAID consultants support SDPI nor hired Mr.
Abbasi. Once you get the report, I would appreciate if you share this with us”

b. Mr. Imran Ahmad, Director AEDB vide his email of 28.12.2010 was shocked to
know if there was any such study/report conducted on AEDB performance, funded
by US AID and supported by SDPI (copy attached). We have been advised legal
remedy by our lawyers against Mustafa’s malicious news stories appearing in The
News of 26 – 27.12.2010. We however have opted to exercise restraint. You are
requested to kindly conduct internal inquiry as to how a malicious reporting by
Khalid Mustafa went to print without cross checking the actual facts from the
authorized officials of AEDB and Ministry of Water and Power both”.

Khalid Mustafa responds: The issue raised by AEDB and Nasir Jamal is simply
peripheral in nature and a lame effort at skirting around the real issue of its
dismal performance. It also betrays a mindset of subservience and
accountability only to the ‘almighty’ USAID unaware of the inconvenient fact
that AEDB’s loyalty must be with the nation and its poor on whose name it takes
funds and loans; and not to USAID, which has placed limited financial resources
for their disposal.

Instead of trying to divert attention from the real issues, AEDB must make
efforts to diffuse the allegations of misconduct and governance inefficacies
that have been levelled against it. It must identify elements that are
consolidating obstinacy to perpetual negligence. It must address vital
questions such as the reasons behind wind IPPs failure to complete their
projects within a stipulated time; explanation on the various irregularities in
financial matters reported by various electronic and print media; openness
measures adopted by AEDB and details on financial expenditures; current
incumbent of AEDB needs to elaborate why valuable funds were spent for the
reconfirmation of wind data compiled by Pakistan Meteorological Department,
which have reached same conclusion after wasting two years. AEDB officials and
Nasir Jamal have downrightly failed to defend themselves except exaggerating
the use of word USAID in the whole debacle. Apparently, this is of more
importance to them as opposed to their dismal performance over the past few
years. Not surprisingly AEDB has not even attempted to defend its non-existent
record of achievement, despite the fact that tremendous local and foreign funding
has been consumed by it. Since its establishment in 2003, AEDB has not even
been able to add a single MW to the national grid.

Sustainable Development Policy Institute (SDPI) recently held its thirteenth
Sustainable Development Conference (SDC) in which a comprehensive presentation
was made on renewable energy potential in Pakistan. The presentation
highlighted the comparisons between Pakistan’s achievements and that of India.
It is pertinent to note that India’s performance in the renewable energy sector
has been unprecedented and impressive. As on 6 June, 2010, it has been able to
add 17173.90 MW and in its fifth year plan, the target was to add 1500 MW power
generated from wind, however a capacity of 5415 MW had been added in their 10th
five year development plan. As per the fifth year target set by the Planning
Commission, AEDB had to add 800 MW of power generating capacity from renewable
energy. Vision 2030 was launched by the Planning Commission, whereby it was
reiterated that 800 MW would be added till 2010 and 9700 MW till 2030. The
presentation highlighted facts and legitimate data demonstrating that AEDB had
issued 113 LOIs to wind IPPs, out of which five wind IPPs were supposed to
commission their projects in 2008. A 450 MW project could have helped to avert
Pakistan’s gas and electricity crisis. Currently, the share of electricity
generation from gas is 46%. If the wind IPPs had gone ahead as planned, a
considerable amount of natural gas could have been saved for domestic

In the press release Nasir Jamal has termed my reporting as malicious and
threatened me of legal action. Through this rejoinder I invite him to gladly
take the matter to any court of law and I would surely place evidence about the
study’s funding. I challenge Nasir Jamal to move the court about his ludicrous
objection on the study funding as I would love to provide the proof in the
court of law so that the truth comes out and whosoever is proven a liar is
fully penalised and stands exposed before the people.

Name of IPP Capacity (MW) Date of Granting License Tariff Rs./kWh Date of
Green Power Pvt Ltd 49.5 27-Apr-07 8.845 Oct-2007
Dawood Power Ltd 49.5 6-Dec-07 10.208 8-Oct-2008
Zorlu Enerji Pakistan Ltd 49.5 23-May-07 10.411 8-Jan-2008
Arabian Sea Wind
Energy Pvt Ltd 49.5 12-May-07 10.251 8-May-2008
Milergo Pakistan Ltd 250 5-Dec-05 6.9653 7-Jan-2008