Rental Power Projects bleed national exchequer

Pakistan

Rental Power Projects bleed national exchequer

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Despite spending Rs 50 billion, rental power units could not produce even 20 percent of electricity.

11 November,2011 07:29 pm

The Rental Power Projects became controversial after the objection raised by NEPRA in 2009. Even Asian Development Bank did not approve of them.The government took loan of over Rs 24 billion from the banks to pay the advance for the projects on 17 percent interest. In a five year deal, it was decided to pay Rs 18 to 20 per unit. Owing to the dearth of fuel, these units could not give their required or maximum output.Now the price of per unit has gone up to Rs 42. The total output is limited to 31 megawatts per month. According to an estimate Rs 5 billion have been spent on the projects so far and God knows how much money would be spent on them in the coming years.