Delayed power projects

IT has long been understood that one of the most important pillars in the election strategy of the PML-N is to commission power projects in the pipeline in time for the general election, and with the augmented power generation, go to the electorate and ask them whether or not the party has fulfilled its pledge to eliminate load-shedding during its tenure. All along it has been pointed out that though this strategy is sound in terms of how democratic politics is supposed to operate, by being directly responsive to the needs of the people, it has a number of weaknesses that could be its undoing. Chief among these is the financial aspect, where additional megawatts pumped into a leaky transmission and distribution system would only cause a more rapid accumulation of the circular debt, with its potential to choke the power sector. Now another major weakness is coming into view: the rush to commission these plants has resulted in a series of technical faults that are delaying commercial operations, while adding to the costs.

At issue are five power projects, three LNG-fired plants in Punjab, the Neelum Jhelum hydropower project, which is already years behind schedule with cost overruns in the billions, as well as an extension project in Tarbela that will add 1,410 MW once completed. In total, these projects have a generation capacity of 6,000 MW. The three LNG power plants have suffered from a series of technical problems that are complicating the start of commercial operations, and potentially driving up the cost at which they will provide power to the national grid. These plants have received numerous extensions already, and were last expected to begin commercial operations by December 2017. But a series of continuing technical problems has pushed that date further down, with the latest being May 2018. This puts them very close to the last days of the government, and if the issues they are facing are not resolved in accordance with the new timeline, it is probable that their commissioning could be pushed into the tenure of the next government. This is just another reminder that in pursuit of delivering on its promise to eliminate load-shedding — a laudable goal — the government has relied excessively on adding new power and not enough on reforming the power sector to improve its governance.

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