KARACHI (September 02 2009): Oil and Gas Development Company (OGDC) has hit hydrocarbon reserves in its exploratory well Nashpa No 01, district Karak of NWFP. According to information sent to KSE here Tuesday, the well has produced 3,000 barrels of oil and 9.678 mmcf per day of gas on 32/64" choke size at wellhead flowing pressure of 2340 PSI. The well is a joint venture between OGDC, PPL (30 pc) and Government Holdings (pvt) Ltd (05 pc). The well was spudded on June 29, 2008 and drilled down to its target depth of 4384 meters.

ISLAMABAD (September 02 2009): The technical experts of Pakistan and Iran on Tuesday discussed the standards and codes of the engineering, which would be utilised in construction of the Iran-Pakistan (IP) gas pipeline project. The five-member Iranian team was led by Iran 's Director Gas Exports, while the six-member Pakistan team was headed by Managing Director Inter State Gas System Hasan Nawab.

According to a senior official, as the pipeline would be constructed in both Iran and Pakistan territories, hence, the standards and codes of the engineering would be the same for the whole IP gas line. Although the pipeline will be constructed under the segmented approach under which Iran will construct the pipeline in its area and Pakistan will construct in its own area from Iran border to Nawab Shah, but factually the pipeline will be the same from Paras field (Iran) to Nawab Shah (Pakistan).

According to sources, such meetings would continue at operational level and that officials of both the countries would meet again after Eid-ul-Fitr. On the issue of comfort letter, the source said as per this letter, the Government of Pakistan would have to allow a third country to import gas through IP pipeline in the event of any such country joining the project in the future.

Such permission, however, will be subject to the gas tariff and transit fee that would be worked out at that time's best practices. Pakistan and Iran signed an initial agreement in the Iranian Capital, Tehran on Sunday during last visit of President Asif Ali Zardari to Iran . Under the agreement, the gas pipeline could be extended in future to take Iranian gas to India.

ISLAMABAD (September 12 2009): Oil and Gas Development Company Limited (OGDCL), the Operator of Nashpa E.L., together with its Joint Venture partners ie PPL and GHPL has discovered additional hydrocarbon reserves of 4,200 barrels oil per day and 17 million cubic feet of gas per day in the upper Lockhart Zone conducted on September 10, 2009. The Nashpa Well No 1 discovery was announced earlier on September 2, located in District Karak of NWFP.

Nashpa 1 well was spudded on June 29, 2008 and drilled down to the depth of 4,384 M. Initially, one of the potential zones, middle Lockhart was tested on August 31, 2009 which flowed 3000 BBLs/Day of crude Oil and 9.7 MMSCFD of gas. Subsequently, testing of additional zones continued which resulted in finding of significant reserves of hydrocarbons at upper Lockhart. Initial testing of this zone produced about 4,200 barrels of oil per day and 17 million of gas per day.-PR.

ISLAMABAD (September 16 2009): The Federal Minister for Petroleum & Natural resources Syed Naveed Qamar here, on Tuesday, reaffirmed government's full commitment to its effective role for the E&P sector adding that the upstream oil and gas companies (E&P Companies) will lead the way to securing the energy future of the country.

He was visiting Pakistan Petroleum Exploration & production Companies Association (PPEPCA) and discussed in detail the way forward for the government and the industry to synergize their efforts for the energy security of Pakistan . The minister was extensively briefed on the current ongoing operations of the Oil and Gas industry and various issues like Taxation, security concerns and community, related matters were discussed. Syed Naveed Qamar assured the industry that the issues raised in the meeting would be looked into by the government and resolved amicably.

He said that the companies would have to make combined efforts as all stakeholders have to be on the same page to achieve success. He said that the government is in the process of introducing a package intending to create goodwill towards all stakeholders and aiming to address issues of the upstream oil and gas companies.

While discussing the community related issues in the exploration of areas, it was observed that the expectations of the local communities rise considerably when a concession is granted and E&P companies arrive in the area. This usually results into higher land rates, pressure for jobs for locals and expectation for the development of health, roads, water and other infrastructure development.

The government was requested to take some reassuring steps to improve the security perception of the country. It was proposed that while E&P companies would continue to fulfil their obligations under the PCA they would prefer to involve government agencies for the purpose of interacting with the local communities. This would involve government bodies in the use of social welfare funds for community projects and use of production bonus funds for infrastructure development.

It was also proposed that a mechanism should be instituted to use part of Royalty proceeds to be ploughed back into the districts from where these are generated and used for infrastructure development. Similarly it was suggested that part of government share of training funds should be used for training of local people so that they can be gainfully employed in the projects.

To further address the concerns of the local communities it was proposed that the area rentals should also be utilised in that area. Taxation issues faced by the industry also came under discussion. Earlier, Chairman PPEPCA, Janos Feher welcomed the Minister for Petroleum and Natural Resources Syed Naveed Qamar to the meeting. The minister became the first in the history of PPEPCA the premier body of E&P sector to visit its office.-PR.

KARACHI (September 16 2009): Oil and Gas Development Company (OGDC) has struck oil and gas reserves in Dakhni Well No 11, district Attock Punjab. According to information sent to Karachi Stocks Exchange (KSE) here on Tuesday, the well has produced 95 barrels per day of oil and 3.06 mmcf per day of gas on 32/64" choke size at wellhead flowing pressure of 600 PSI.

This is developed well and it was for the first time that Shinwari/Samanasuk formations have been successfully tested for oil and gas. The purpose of drilling was to test the potential of Chorgali, Sakessar, Lockhart, Patala, Samanasuk, Shinwari, Datta and Kingriali formations. The well was spudded on July 18, 2008 and was drilled down to the depth of 4,844 meters.

ISLAMABAD : Federal Minister for Petroleum and Natural Resources, Syed Naveed Qamar said here on Saturday that partnership with foreign companies, coupled with the involvement of the local stakeholders, was one of the keys to unlocking the potential of reserves for the benefit of the country.

Talking to Dr. Michael Koch, Ambassador of the Federal Republic of Germany who called on him here he said foreign companies should come together and collaborate with public sector companies to promote transfer of know-how, generate employment and community development. 

Matters pertaining to bilateral interest, particularly investment opportunities in Pakistan came under discussion during the meeting, said a press release issued here Saturday.

He said that the government was pursuing vigorously multi-pronged approach to promote efficacious utilization of precious natural resource.

He said that his ministry would extend all the assistance necessary to facilitate investors.

ISLAMABAD (APP) - Dr. Michael Koch, the ambassador of the Federal Republic of Germany, called on Federal Minister for Petroleum and Natural Resources, Syed Naveed Qamar and discussed the matters pertaining to bilateral interest, particularly investment opportunities in Pakistan came under discussion during the meeting.

Naveed Qamar informed the ambassador that in view of the country's huge energy needs, and with supplies finding it difficult to keep pace with the demands, a multi-pronged approach to promote efficacious utilization of precious natural resource and fast- tracking exploration and production in the indigenous upstream oil and gas sector and through imports were being vigorously pursued. Dr. Koch informed the Minister of the vast experience the German companies had in various processes including exploration, extraction and transportation.

OMV delegation calls on Qamar

A delegation comprising senior management of OMV Exploration and Production called on Minister for Petroleum and Natural Resources, Syed Naveed Qamar, here at his office.

Dr. George Watchel, the incumbent General Manager of the company, introduced the delegation led by General Manager OMV, Dr. Elmar Collins, to the Minister.

While reviewing the company's performance in Pakistan over the years, the prospects of upcoming projects came under discussion during the meeting.

Appreciating Dr. Watchel for his invaluable contribution in exploratory work, particularly in the gas sector in Pakistan since many years, Syed Naveed Qamar also welcomed Dr. Elmar to office. He said that investment opportunities for E&P companies existed in the country's upstream oil and gas sector and all the necessary assistance to facilitate investors' initiatives would be extended.

ISLAMABAD (September 01 2009): Chinese companies would transfer technology to Pakistan to generate solar and wind energy, which would be provided to farmers for irrigation across the country. The National Assembly Standing Committee on Finance was told by the Zarai Traqiati Bank Limited (ZTBL) that it was working on the project in collaboration with the Alternative Energy Development Board (AEDB).

The funding of the project to generate about 2,000 to 3000 MW would be done by the ZTBL, said ZTBL President Zaka Ashraf. The committee was apprised that cost of each unit would be from Rs 1 million to Rs 2.6 million. The bank is also working on a project of biogas and electricity generated from this project would be used by farmers to increase agriculture produce.

Zaka Ashraf said that agriculture credit facility is being provided to only 7 per cent farmers and his banks wanted to increase it to 25 per cent. At present, he said that agri. lending is restricted to Rs 75 billion which could be increased easily to Rs 795 billion. He said that the previous government had disbanded all agriculture-related activities and bank was restricted to only lending but the present government has decided to start all the agricultural related activities.

He said that ZTBL officials would be available in every district to provide credit and technology to the farmers at one point. To a question about mentioning two tractors scheme, he said that it was because Benazir Tractor Scheme was launched by the federal government and green tractors scheme by the Punjab government.

The committee members said that windmill project would be a scam to the credit of this government and the bank was advised not to get involved in business which is not in its mandate. Some members said that the loan of ZTBL was misused with the connivance of the bank officials. Even more than the half was going into non-agriculture sector. The ZTBL role, they said was very important for its growth and it should focused all its effort to improve the growth of this sector.

Faisal Saleh Hayat also raised the issue of ZTBL President appointment saying why the State Bank of Pakistan has not yet given clearance of his appointment as President of the Bank. An ugly scene was created on this issue when PPP lady lawmaker Nafisa Shah said that this is mere allegation and we not let anybody to defame the party due to personal reasons.

Zaka said the question of not giving clearance should be asked by the SBP and not from him. However, he said that his all action would be legal even if the regulator did not give his clearance. Faisal also protested over absence of Finance Minister Shaukat Tarin from the meeting. He said that the Minister should abandon all other engagement to cover the meeting because the members have a lot of questions on current economic situation that could have been raised during the meeting.

Sept 5: PAKISTAN has a vast desert area in Thar that is lying without any use. A fraction of this area could be gainfully utilised to produce electricity through the process of Concentrated Solar Power (CSP).

This process utilises thousands of parabolic mirrors which focus or concentrate sunlight on pipe carrying water that is heated through the concentrated solar rays and gets converted into steam. The steam thus produced is used to power the steam turbines which in turn generate electricity.

The process is cheaper and more efficient than the usual form of solar power that uses solar panels to convert the sunlight into electricity.

It may be mentioned that a project with the name of Desertec has already been launched by 12 European companies with a hefty amount of $560bn using this process.

Through this project, huge solar farms involving thousands and thousands of mirrors would be set up in the desert of Africa and the Middle East . Only, 0.3 per cent desert area would be used to produce electricity which would be delivered to Europe 's homes and facto ries by the end of the next decade.

The electricity so generated would cost less than oil and would be sufficient to meet 15 per cent of Europe 's total electricity demand by 2030.

The electricity would be brought to Europe over a long distance besides passing through the sea. It is estimated that CSP may be able to meet 25 per cent of total world energy demand by 2050.

Keeping this spectacular example in view, Pakistan should also venture into the production of electricity through concentrated solar power (CSP). By tapping energy through CSP, the country wouldn't pay for the import of oil as the raw material used would be the sun's rays. This project can easily be started in the vast Thar Desert .

KARACHI (September 06 2009): Pakistan Electric Power Company (Pepco) has invited bids from international firms to design, manufacture, supply, installation, testing and commissioning of 220kV, D/C, Twin Bundle, in/out arrangement at its Shalamar Substation (GIS) for interconnection with the existing RAVI-KSK transmission line.

An advertisement published in a London-based newspaper states that as Pepco had received a loan from the Japan International Corporation Agency (JICA) toward the foreign currency component cost of 220kV/132kV Shalamar Substation (GIS) and allied 220 kV D/C overhead Transmission Line Project, it has invited the bids from eligible bidders for the arrangements of 220kV, D/C, Twin Bundle project under the contract.

It said that the bidding would be conducted through the international competitive bidding procedures specified in the guidelines for procurement under JICA ODA loans. According to the advertisement, the bidders are needed to have at least five years experience in design, manufacture, supply, installation, testing and commissioning of major plant comprising 220kV/132kV transmission lines based on a similar design and capacities.

KARACHI (September 07 2009): A Chinese state-run company, Shenhua Group Corporation, which had rolled back its plan in 2006, is likely to invest $1.5 billion for setting up 1,000 Megawatts coal-fired plants, it is reliably learnt.

The Sindh government had started re-establishing contacts with the Chinese firm and was giving assurances that no hindrance would be put in place in the project, sources told Business Recorder.

They said President Asif Ali Zardari, during his last visit to China , had also met with the representatives of the Shenhua Group Corporation and assured them of full co-operation by the government.

According to the sources, the federal government had contacted the Chinese firm in October 2006 to start work at Thar Coal sites and offered increased electricity rates. But, the company rolled back its plan after the National Electric Power Regulatory Authority (Nepra) fixed the lowest power purchase rates, they added.

Since it was made compulsory that tariff once agreed would not change for 30 years, so the company was insisting to increase the tariff, which would be viable enough to run the business. The rolling back of the plan was a major setback for the country as it was facing the worst ever electricity shortage, they opined.

Recently, a delegation, nominated by the Sindh government, headed by a member of the Thar Coal Energy Board, Syed Asad Ali Shah, and Secretary Mines and Mineral Development Department, Aijaz Khan, went to China and held talks with the representatives of the Shenhua Group Corporation for the restart of work on Thar Coal, they further said.

Sources said the 'ill attitude' of the federal authorities during the tenure of previous regime had compelled the firm to roll back its plan worth $1.5 billion, causing a big loss to the country. The Shenhua Group Corporation had already carried out feasibility studies of Block-II of Thar Coal and the work would shortly be started if the company returned, they said.

They said another Chinese Company, Sino Coal, was playing an active role in restoring the contacts between the government and the Shenhua Group Corporation and it was hoped that at least 1,000MW electricity would be added to the national grid in three years.

Shenhua had vast experience in generating electricity from coal-fired power plants and completed detailed feasibility in collaboration with Geological Survey of Pakistan, they said.

The sources said the uniformed pricing formula for electricity purchase was needed to guarantee foreign investors to set up coal-fired power plants. Many foreign and local companies had carried out feasibility studies confirming availability of vast coal reserves but they were reluctant to start power generation due to 'unfair' pricing formula for the coal fired power generation, sources further said.

LAHORE (September 07 2009): Chief Minister Punjab Muhammad Shahbaz Sharif has invited Chinese companies to invest in coal-based power generation project in the province. Talking to a delegation of Sino Coal International Engineering Group, China which called on him here on Sunday, Shahbaz said that China is a close and trusted friend of Pakistan and Pak-China friendship withstood the tests of time.

He said China had extended invaluable co-operation for socio-economic development of Pakistan and its investment in various projects is highly encouraging.

He said that Pakistan is facing serious energy crisis, which is adversely affecting the growth of agriculture, industrial and other sectors. There are huge coal reserves in Punjab and the government is working on various projects for coal-fired power generation, he added.

As the country has large reserves of high-grade coal, so in wake of the severe energy crisis being faced by the country work on alternate sources of energy generation is being carried out expeditiously, he added. He said that Punjab government constructing Taunsa Barrage Hydel Power Project, which would result in generation of 120 megawatt electricity.

He said that negotiations were being held with different countries for energy generation, however, it was the desire of Punjab government that China should come forward for investment in these projects.

He said that Punjab government wanted to set up plants for generation of energy from coal in Dera Ghazi Khan and Chakwal and the Chinese companies which had the required expertise in this sector should benefit from the investment opportunities. He said that joint ventures could also be initiated in this sector.

Referring to his recent visit to China , Chief Minister Punjab said that a number of agreements were signed for bilateral co-operation in agriculture, irrigation, energy, infrastructure, solid waste and other sectors which are being given a practical shape.

The head of Chinese delegation, Zhaojian, said that Punjab was facing serious energy deficit and in accordance with the desire of the Chief Minister, projects of generation of energy from coal would be initiated expeditiously and a feasibility report would be prepared within two months after considering all options.

Secretary Mines Saifullah Chattha, Secretary Industries Rao Manzar Hayat, Deputy Chairman Investment Board Pir Saad Ehsanuddin, Chief Executive Officer Pak-China Bureau Zafar Mehmood Chaudhry as well as other officers were present in the meeting.

KARACHI , Sept 8: The government of Sindh and Engro Power Generation Ltd signed on Tuesday an agreement for generating 600-1,000MW of electricity from Thar coal.

Sindh Secretary for Mines and Mineral Development Aijaz Ali Khan, Engro Ltd's CEO Asad Umer and Engro Power Generation's CEO Khalid Mansoor signed the agreement at the Chief Minister's House. Chief Minister Qaim Ali Shah and Irrigation and Power Minister Murad Ali Shah were present on the occasion.

Under the agreement, the provincial government will make 40 per cent investment and Engro 60 per cent. Two per cent of the profit will be spent on welfare of the people of the area.

A feasibility study of the project will be completed in 18 months.

Talking to journalists after the signing ceremony, the chief minister said the Thar coal project, the first of its kind under the public-private partnership, would be of great economic benefit.

KARACHI (September 10 2009): The Sindh government is trying to get financial assistance from Asian Development Bank (ADB) to commence work on the project of 50MW solar-thermal plant. Sources in Planning and Development (P&D) department told Business Recorder on Wednesday that the summary in this regard was moved by the Environment and Alternative Energy (E&AE) department, which was approved by the Chief Minister.

Consequently, a meeting was convened by Additional Chief Secretary (ACS), P&D on August 26, 2009 to discuss the modalities for setting up a 50 MW solar-thermal plant in the province, which decided that the private sector would be inducted for the project and the government would work as facilitator.

Sources said that these kinds of projects were implemented by the private sector. Therefore, the government has sought to get financial assistance from ADB to commence the project as soon as possible. Furthermore, they said, the E&AE department has prepared a feasibility report for the project, but it was not appreciated by the ACS.

He was of the view that the feasibility study should have been conducted by the consultant to evolve a flawless layout for the project. Sources said that ACS also directed the E&AE department to get engaged any consultant firm for carrying out another fresh feasibility study for the project.

They said that the department has been directed to hold meetings with stakeholders for preparing small and medium size renewable energy project (5 to 10 MW) based on solar energy at the coastal belt of the province as CM is keen in the execution of these projects to minimise electricity shortfall.

ISLAMABAD (September 11 2009): The United States, under its Energy Efficiency and Capacity Building programme, will significantly reduce the Pakistan's energy shortfall of 1500 MW over the next three years through efficient use and conservation of energy. USAID-Mission Director in Pakistan Robert J.Wilson briefed the media on Thursday about the USAID programme to be launched in Pakistan .

The agency recently started the Energy Efficiency and Capacity Building programme to address 5,000 MW shortfall that threatens businesses and undermines Pakistan 's economic and social stability. According to details, a multi-faceted and co-ordinated approach will include conducting energy audit of firms, facilitating a shift to energy-efficient equipment, improving building codes and launching public information campaigns.

Talking to media, Wilson said the US was going to introduce effective reporting, monitoring and execution system in implementing the multi-million USAID support programmes in Pakistan to spend the 1.5 billion-dollar annual assistance.

He said that the USAID programme was aimed at strengthening businesses, improving agricultural productivity and rehabilitation of the energy sector, adding the USAID would also launch several new programmes in various sectors, including micro, small and medium business development, economic reforms, workforce development, trade, energy efficiency and agriculture in the coming years. Wilson said that the USAID was going to recruit a large number of staff to implement the programmes in different sectors.

He dispelled the impression that majority of the staff would be US nationals, saying that over 80 percent staff would be Pakistani and some senior members would be probably from the US to implement the programmes in an effective manner.

"We are not going to exclude any Pakistani institute from our programmes if it has capability to efficiently execute them," he said. "We have to fix the targets under the new programmes and efficient and skilled staff would be needed to meet the targets," he added.

He mentioned that around 3.4 billion dollars were spent by the USAID since 2003 in Pakistan in health, education, strengthening of the democratic institutions, agriculture sector as well as in the reconstruction and rehabilitation of the earthquake-affected areas of NWFP and Azad Jammu and Kashmir (AJK). He further said that the US would continue its support in these sectors with new targets and would also support in strengthening of the democratic institutions and media development.

He also dispelled the impression that the US was attaching any tough conditions with the Kerry-Lugar Bill, under which Pakistan would receive 1.5 billion-dollar annual assistance for socio-economic development. Wilson said that in the new USAID programmes, agriculture, health, education, job creations and strengthening of the democratic institutions were the priority areas.

Besides, under the USAD programme, as many as 10,000 new community midwives would be trained by 2012 to provide safe deliveries and referrals for proper care in rural villages. The USAID trained 1,618 women from rural villages in an 18-month midwifery programme from 2004 to March 2009.

LAHORE (September 12 2009): Punjab Chief Minister, Shahbaz Sharif has invited the American Business Forum (ABF) to invest and cooperate in projects relating to hydel and coal-based power generation, on which the Punjab government is working to overcome energy crisis. He made this gesture during a meeting with the members of ABF's executive body, who led by the forum's president Rizwan Ullah Khan called on him, here on Friday, said an official.

The Chief Minister said a complete transparency was being maintained in the implementation of all the power generation projects, adding the Punjab province had huge coal reserves and power generation plants would be set up in Dera Ghazi Khan and Chakwal.

He said coal would be acquired from Balochistan for the plant in Dera Ghazi Khan, and negotiations had been held with the Balochistan government in this regard.

He said the Punjab government had created a favourable atmosphere for foreign investment and all out help was being extended for the purpose, adding foreign investors would be provided complete protection in the province. According to him, an investment board comprising professionals has been set up for the promotion of trade and industrial activities in the province.

"The American Business Forum is playing a commendable role with regard to bilateral relations, economic co-operation as well as development of the province. The Forum should also come forward to assist in the projects of power generation and benefit from investment opportunities in different projects. It should also give its proposals with regard to the promotion of information technology and IT park."

While giving a detailed briefing about economic and trade activities of the Forum in the Punjab, ABF President Rizwan Ullah Khan said the Punjab was a hub of economic and trade activities and there were vast investment opportunities in the province. He said the Punjab was an ideal place for foreign investment and the ABF had keen interest in investment in different projects. All out assistance would be offered in Information Technology, power generation and other sectors, he added.

Member National Assembly, Khawaja Muhammad Asif, Senior Political Assistant Pervez Malik, Vice Chairman Punjab Investment Board, Pir Saad Ahsanuddin, Secretary Commerce and members of the executive body of the American Business Forum were present on the occasion.

ISLAMABAD (September 15 2009): Minister for Water and Power, Raja Pervez Ashraf, here, on Monday, said that the government will consider the China's proposal for upgradation and rehabilitation of existing thermal power plants to enhance their generation capacity and facilitate the foreign companies.

He said that this while talking to a three-member delegation of Shanghai Electric Power Generation Group, headed by International Services Director, Guo Feng who called on the minister here. The minister said that the government is taking all steps to end power crisis within shortest possible time frame and all the resources are being utilised in this regard. He added the government wants to generate maximum from the oldest public sector thermal power plants.

He said that different proposals are already under consideration for rehabilitation of power plants. He added that the decision in this regard would be taken soon. He welcomed the Chinese proposal and asked them to submit a detailed feasibility report to the Ministry.

Earlier, Guo Feng briefed the minister about their proposal and said that they are initially interested to rehabilitate and expand the capability of two units of Muzaffargarh power plants. After rehabilitation the generation capacity will raise from 220 MW to 350 MW from both units. It will also protect the environment and save fuel with maximum benefits and minimum investment.

ISLAMABAD (September 16 2009): Managing Director Pakistan Electric Power Company (Pepco) Tahir Basharat Cheema on Tuesday said that an investment of around US $2 billion is expected in power sector through Rental Power Projects (RPPs). In a briefing given to media persons here, he said besides investment in power sector additional electricity of 1675 MW will be added in the system by December 2009 when nine rental power projects will start generation.

He added an overall 2250 MW electricity will be generated through RPPs in current fiscal year. He said two rental projects had already started generation included Atlas Power (213MW) and Attock Generation (156MW) while remaining seven will start functioning by December 2009 included Nishat (196 MW), Engro (203MW), Saif Power (213MW), Fauji Foundation (176MW), Sapphire Electric Company (213MW) and Orient Power Company (213MW).

He said all proposals of RPPs were accepted only with bid bonds, performance guarantee by sponsors, monthly rental payments are to be made only after commissioning of the plant while penalty will be imposed on delay in commissioning. He said there was no pressure from the government on any bank in the public or private sector to fund any rental project, adding, lenders to rental power companies undertake their own due diligence and take decisions based on their own financial position.

He clarified that the rental tariff for the projects was different being dependent on factors including projects were located at different sites as per system requirements and projects had different fuel consumption and different fuels.

He added others factors were variation in project cost due to difference in technology and age of machinery and variations in financing and sources and costs. Basharat Cheema said for the first time the idea of starting rental power projects was presented in 2005 when the country was facing acute power shortfall.

He added since 2005, every government remained committed to work on RPPs to overcome energy deficit problem. He said it was the only option to have RPPs in the country, as shortest possible time was required to generate electricity from RPPs. He said there were several other aspects that favours the idea of RPPs like such projects could be installed at any place as there was no need of large area for its installation unlike IPPs.

ISLAMABAD (September 18 2009): The Asian Development Bank (ADB) is extending $780 million to Pakistan through a multi-tranche financing facility for priority energy efficiency projects that will secure the country's growing energy needs and reduce its reliance on costly, polluting fossil fuels, said Bayanjargal Byambasaikhan, energy specialist with ADB's Central and West Asia Department.

According to the information made available on the ADB website Thursday, the $1.18 billion Energy Efficiency Investment Program underpins Pakistan 's first-ever initiative to make both the pursuit of energy security and low-carbon growth a single strategic priority. The 10-year program puts energy efficiency and the adoption of clean technologies at the heart of government planning and public investments.

"The mainstreaming of energy efficiency into policy and planning marks a radical change for Pakistan and creates a major opportunity for new clean energy investments," said Bayanjargal Byambasaikhan. He added Pakistan currently suffers from a huge gap in energy supply and demand, resulting in regular, lengthy power outages, which is a key factor behind its present economic difficulties.

The power deficit stems from growing consumer demand, combined with a lack of new investment, large-scale system losses and inability to attract the private sector. The government has responded with interim measures such as rental power generation, but this is a short term measure that falls well short of the country's needs.

"Energy efficiency saves money, and is the quickest and most climate-friendly way of bridging the energy gap and securing energy supplies," said Byambasaikhan. The 'Multi-tranche Financing Facility' will finance short to medium-term energy efficiency projects, including the replacement of incandescent light bulbs with more efficient and cost-effective compact fluorescent lamps. The facility, which will release funds in tranches, will provide a portion of the government's 10-year energy efficiency investment plan, estimated at $3.8 billion.

Targeted energy savings under the program will reduce the country's energy intensity, while cutting greenhouse gas emissions by an estimated 30%. The overall gains in annual savings by fiscal year 2019 are expected to be around $4 billion. Major social benefits, such as increased household incomes, jobs, and reduced poverty levels, will flow.

The programme will help the government reduce public expenditures and subsidies, easing the debt problem in the power sector, which has weighed on attempts at improvements in the past. It also removes financial barriers to investment in clean energy technology, opening the way for increased private sector involvement with ADB, and other development partners, helping to leverage commercial financing support. Projects in the program are expected to be eligible for earning carbon revenues under the Clean Development Mechanism of the Kyoto Protocol.

Through the facility, ADB will extend $760 million in loans from its ordinary capital resources in tranches. It will provide a further $20 million from its concessional Asian Development Fund. Co-financing equivalent to €150 million will be provided by Agence Française de Development, with the government financing $200 million equivalent. ADB is the government's lead partner in the energy sector, providing around one-third of total assistance, and it will work closely with other development partners to support the 10-year programme, which will be co-ordinated by the Planning Commission.

ISLAMABAD (September 19 2009): Secretary of State Hillary Clinton will announce selected energy projects in her upcoming visit to Pakistan, US envoy to Pakistan Anne W Patterson said while talking to Prime Minister Syed Yousuf Raza Gilani at PM House on Friday. Both leaders discussed various aspects of bilateral relations between the two countries.

The US Ambassador informed the Prime Minister that a team of experts from the United States would be visiting Pakistan early next month to discuss the energy projects chosen by the US side, which the Secretary of State Hillary Clinton would announce in her forthcoming visit.

According to a statement, she also assured the Prime Minister that Kerry Lugar Bill will be passed by the US Congress in coming weeks and most of the financial assistance included in it will be funneled through the established government institutions and mechanisms such as Benazir Income Support Programme, Higher Education Commission, Basic Health Units and through government institutions assisting dislocated persons.

Patterson said the US government was highly appreciative of the government of Pakistan handling of dislocated persons, their rehabilitation and the endeavors to reconstruct the affected areas of Malakand Division. She reaffirmed her government's commitment to remain steadfast in its support to Pakistan in the reconstruction phase of Swat and Malakand areas.

The Prime Minister while thanking the US government for co-hosting the Friends of Democratic Pakistan Summit scheduled to be held in New York , expressed the hope that this congregation of the leadership of the friendly countries would provide the needed impetus for realization of pledges of assistance made in Tokyo . He also hoped that the World Bank Trust Fund for Pakistan would be announced during the Summit to enroll the support of smaller donors for development projects in the country.

While dilating upon the Pakistan's ongoing operation against militants, the Prime Minister underlined the urgency for replenishment of ammunition and equipment needed by Pakistan 's Armed Forces to successfully bring this campaign to its logical conclusion. The Prime Minister also reaffirmed his government's priority to focus on the energy sector and asked the US and other donor countries to come forward with immediate assistance to help the government overcome the present energy deficit.

LAHORE (September 20 2009): Pakistan Electric Power Company (PEPCO) and Harbin Power Engineering (HPE), China signed contract for 747 MW Combined Cycle Project located at Guddu Power Company under the Central Power Generation Company Limited (GENCO II) at WAPDA house here on Saturday. On the occasion, MD PEPCO Tahir Basharat Cheema said the project is part of PEPCO`s long term initiative to provide reliable and cost effective power to the people of Pakistan.

He added that PEPCO has been able to successfully negotiate and finalise the deal at competitive market prices with highest efficiency of all installed and under construction projects in Pakistan with a net efficiency of 54.5 percent. The project will replace the existing underrated units 1,2,3 and 4 at Guddu which at present are only generating 250 MW or so.

He said Harbin Power Engineering (HPE) china is a leading Engineering company having considerable experience in power plants. Harbin also has wide experience in Pakistan and had been involved in projects at Guddu, Faisalabad , Kotri, Jamshoro, Muzafargarh and Malakand. They will use the gas turbines from General Electric USA, which is the world's largest gas turbine supplier with extensive experience both internationally and Pakistan as well.

The gas turbine contemplated for the project is Frame size 9-FA which is amongst the most effective and best in the world. These gas turbines utilise the latest metallurgical advances and coatings to produce one of the highest possible efficiencies. The project was signed by GUO-YU President Harbin Power Engineering and Tahir Basharat Cheema, who later informed that by shutting down inefficient and outlived Guddu units and utilising gas a new combine cycle will provide tremendous saving due to almost double electricity production, with improved availability parameters.

NEW YORK (September 24 2009): Foreign Minister, Shah Mahmood Qureshi spent a busy day at the United Nations on Tuesday, meeting with his counterparts from some European, Central Asian and African countries on advancing bilateral relationships in economic and diplomatic fields.

In a meeting with the Tajik Foreign Minister Hamrokhon Zarifi, the top Pakistani diplomat, who is accompanying President Asif Ali Zardari to UN General Assembly session, discussed the situation in Afghanistan and the recent elections in that country.

They discussed prospects of bringing 4000MW electricity from Tajikistan to Pakistan with the Tajik diplomat reiterating his country's desire to supply electricity to Pakistan , as it has surplus power. Foreign Minister Qureshi underlined the need for starting negotiations on free trade agreement as a framework to bolster commerce between the two countries.

Qureshi and Austrian Foreign Minister, Michael Spndelegger also discussed bilateral relations. The foreign minister briefed his Austrian counterpart on Pakistan 's successful anti-terrorism efforts in Swat.

He reiterated Islamabad 's call for getting greater access to the robust European market, saying expansion in trade would help spur economic growth and bring employment to people. The foreign minister said Pakistan is pleased that the European Union has agreed to start negotiations on the subject.

Meanwhile, Qureshi said, Pakistan wants to avail GSP facility. Foreign Minister Qureshi also had a meeting with an Italian parliamentary delegation, led by its former foreign minister and exchanged views on UN Security Council reforms.

The Italian parliamentarians were appreciative of Pakistan 's efforts in fight against terrorism and expressed their support for Islamabad 's desire for greater access to the European market. The members of the Italian delegation said they see Pakistan as a prospective and attractive investment destination.

Meanwhile, the Pakistani foreign minister and his Egyptian counterpart Ahmed Aboul Gheit also exchanged views on expanding bilateral economic co-operation and agreed that the joint ministerial commission should meet at the earliest. The Egyptian diplomat extended an invitation to Shah Mahmood Qureshi to visit Cairo at his earliest convenience.

Discussing growing level of Egyptian investment in Pakistan , Gheit said Egyptian entrepreneurs see Pakistan , as a lucrative investment destination. Qureshi briefed the Egyptian foreign minister about Pakistan-India relations and the situation in Afghanistan.

ISLAMABAD (September 25 2009): National power system would have over 42 MW power produced from alternate sources besides existing sources of hydal and thermal systems by December 31 to resolve power crisis in the country. Well-placed sources in Alternative Energy Development Board (AEDB) revealed on Thursday that the Board is set to pour 35 MW electricity produced from Biogas, 6 MW from wind and 1 MW from micro-level hydro projects operated by its various stakeholders and private power producers by December this year.

They said that as an advisory board, AEDB has taken great stride during last one year since its formal inception to meet its objectives and also assured that the share of renewable energy in the system will increase manifolds by the end of next year.

Giving brief account to APP on the Board's achievements so far, they said that the first 6 MW wind power plant of commercial scale in country's history was inaugurated on 19th April 2009 and Micro Wind Turbines of below 10 KW, 125 KW and 20 KW have been installed in Karachi, Landhi and Kallar Kahar respectively besides setting up of new measuring masts for wind mapping in all four provinces.

Similarly, the sources said, that 3,000 off-grid, rural homes electrified through solar energy in district Tharparker, Sindh besides launching programme for Accelerated Development of Solar Water Heaters. The sources of AEDB also told that in the wake of on-going power crisis in the country, the Board has special focus on utilisation of Biogas and small hydel projects out of which 35 MW of Biogas/Waste and 1 MW of micro-level hydel projects have been made operational by Shakarganj Sugar Mills and Blue Star Energy.