KESC rejects allegations by Senate panel

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KARACHI  : The Karachi Electric Supply Company (KESC) has dismissed as baseless the allegations levelled against it by a sub-committee of the Senate’s Standing Committee on Water and Power.

 

In a statement issued on Thursday, KESC termed the allegations a negative propaganda which would have an adverse impact on Pakistan’s attempts to woo foreign investors.

 

The KESC said that its privatisation had taken place in accordance with the law after approval of the Economic Coordination Committee (ECC), federal cabinet and the Chamber of Commerce and Industry (CCI). The subsequent induction of Abraaj Capital as a new shareholder in 2009 was legally in order.

 

According to the statement, Abraaj Capital has already invested $361 million for adding new generation capacity (1,010mw) and rehabilitation of network infrastructure which complies with their obligations under the April, 2009 amendment agreement between the government of Pakistan and KESC. Since then the overall investment in KESC through debt and equity is around $1 billion. On the issue of 650mw from National Transmission and Despatch Company (NTDC), the KESC clarified that it served over 20 million consumers across 6,500 square kilometres stretching from Gharo to Uthal, Bela, Vinder, Lasbela and Hub industrial zones in Balochistan. Contrary to a popular misconception, the KESC did not have excess megawatt capacity to spare, said the statement.

 

It said the transmission and distribution losses which were around 40 per cent at the time of KESC’s privatisation had been brought down to 28pc in 2013.




Courtesy:  dawn


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