International Finance Corporation, Lahore Chamber of Commerce and Industry discuss policy barriers to captive power generation

Lahore, December 10, 2013 (PPI-OT): International Finance Corporation (IFC) and the Lahore Chamber of Commerce and Industry (LCCI) on Tuesday discussed threadbare regulatory and policy barriers to captive power generation and private-to-private models of electricity to reduce the current power deficit.

LCCI former President Mian Anjum Nisar, LCCI Executive Committee Member Chaudhry Muhammad Aslam and Akber Sheikh held talks with the International Finance Corporation (IFC) team comprising Saima Zuberi, Ricardo Arias, Aijaz Ahmad, Affifa Raihana, Dalia Sakr, Etienne Rafi.

The IFC team apprised the LCCI members that they are increasing their focus on infrastructure sectors and are looking to identify how it can best support private investment in selected countries including Pakistan.

They also endorsed the LCCI idea of making the energy audits obligatory in the private sector as is a prerequisite to enhance efficiency and great step towards conservation of energy.. IFC team spoke about the importance of captive power generation and private-to private sales of energy in solving the energy crisis in the country.

They were of the view that this would reduce the dependence on the national grid. IFC delegates also talked about facilitating the investors in giving loans for captive power generation and private-to-private sale of energy. They said there would be no cap on the loan and would depend entirely on the need of the project.

They said that they would also facilitate Banks in giving loans for captive power/private-to-private power generation as Banks currently are reluctant to finance these types of ventures and only concentrate on traditional collateral based lending.

They informed the gathering that talks with Banks in this regard are in process. Both IFC team and LCCI members were of the view that excessive time taken by Government in approvals is a big obstacle in facilitation of private sector for power generation.

The IFC delegation highlighted the importance of the Lahore Chamber of Commerce and Industry as a hub of knowledge and invited the Chamber to join hands with IFC in creating the awareness among members of efficient energy use.

Mian Anjum Nisar appreciated the International Finance Corporation (IFC) initiative saying that the exercise would contribute considerably towards assisting the government efforts to attract private sector investment into power sector development and help solve provincial energy shortage. Anjum Nisar also briefed the IFC team about the prevailing energy crisis in the country.

He highlighted the problem of expensive energy mix and said that high energy price and shortages were the hitches to captive power generation in the province of Punjab. He talked about excess gas shortage in the province of Punjab as compared to other provinces.

He said that captive power generation by the sugar industry is currently very low. He was of the view that encouraging captive power generation is very important to solve the prevailing energy crisis in the country.

For more information, contact:
Shahid Khalil
Information Department
Lahore Chamber of Commerce and Industry (LCCI)
11-Shahrah-e-Aiwan-e-Tijarat,
Lahore -54000, Pakistan
Tel: +9242 111 222 499
Fax: +92 42 636 8854

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