ISLAMABAD - Terming the decision to privatise strategically important and economically viable project of Neelum Jhelum hydropower project a blunder, an expert at the Planning Commission has advised the government to rethink its decision with a cool head before embarking on the idea.
It is very strange that the project is located in the sensitive and strategic border area and the government is talking of its privatisation, an expert of the Planning Commission told The Nation on the condition of anonymity, adding that as a planning expert I will advise the government to first better consult the military experts in this regard.
The Neelum River flows across the militarised Line of Control (LoC) that separates the Indian and Pakistani administered parts of Jammu and Kashmir and which has witnessed 1947 war between the two South Asian neighbours and is in constant tension since then. Neelum-Jhelum Hydroelectric Project is located in the vicinity Muzaffarabad. It envisages the diversion of Neelum River water through a tunnel out-falling into Jhelum River. The intake Neelum-Jhelum is at Nauseri 41km east of Muzaffarabad and has installed capacity of 969mw. This is not merely a power or business venture, you are talking about the privatisation of a project located in a sensitive area where you are confronting your enemy for the last 69 years, the official maintained.
It is pertinent to mention here that disappointed by the delay and the escalating cost of the project the 15th meeting of the Cabinet Committee on Energy, chaired by the Prime Minister, decided that a committee will be formed to look into the possibility of privatising the Nellum-Jhelum Power Project. The committee will be tasked to present its report within three months.
The decision of the committee on privatisation has yet to come but it will be bad luck if they decided to go with the decision of privatisation. According to my knowledge a Chinese company has already shown its interest in the privatisation of the project, the official informed. “I know Chinese are our friend but as a nation you have to set a limit both for your friends and enemies.” the official maintained.
Besides its location which is in proximity with border, the official said that the decision is economically faulty too. About 70 percent work on the project and 80 percent on the tunnel has been completed, so how can you ask a private company in this stage to come and ripe the benefits, the official questioned. According the ministry of Water and Power upon completion, Neelum Jhelum hydropower project would contribute 5.15 billion units of cheap electricity to the national grid and the annual benefits accruing from the project are estimated at Rs 45 billion.
Keeping view the earnings estimates, if even the government spend total Rs414 billion on the project it will get it back in 10 years. In this stage the project hardly requires Rs150 to 200 billion which can be earned in maximum three to four years time, the official said.
For a controversial project of metro bus, which runs on government subsidies, the government can arrange Rs 80 billion so why they cannot arrange funds for the strategically important and economically beneficial project of Neelum Jhelum, the official maintained. We want timely completion of the project but not at the price of compromising national interest, the official said. However the expert supports the idea of looking the possibility of entering into a partnership with investors to ensure its timely completion.
The revised estimated cost of the project has increased by 50 percent from Rs 274 billion to Rs 414 billion. It is also worth mentioning that during last two years, of the current government, the target completion date of the project has been revised three times.
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