PR
No. 315"
PRESS RELEASE
SAUDI AMBASSADOR CALLS ON MINISTER FOR RELIGIOUS AFFAIRS
Islamabad, 30th
January, 2010
Ambassador of Kingdom of Saudi Arabia, H.E Abdul Aziz Al-Ghadeer, called on Federal Minister for Religious Affairs, Syed Hamid Saeed Kazmi here today. They discussed matters pertaining regional and international scenario of the Muslim world as well as strengthening of the relations in order to safeguard the mutual interest of the both brotherly Islamic countries.
The Minister thanked the Saudi Envoy for extending full support of Saudi government for completion of the current successful Hajj Operation. He said that the arrangements, facilities and cooperation extended by the Saudi government to the Pakistani Hajj pilgrims during their stay in Makka and Madina were commendable. He also thanked custodian of Harmain Sharifain for kind cooperation, extended to Hajj Pilgrims and expressed his best wishes for the prosperity of the Saudi Government and People.
A Conference of all Ministers of Religious Affairs of Muslim Countries which will likely to be held in Pakistan in the current year also came under discussion in the meeting. They deliberated upon ways and means of the conference with a special focus how to hold the moot in the present state of affairs in Pakistan.
They also reviewed the progress of the under consideration Memorandum of Understandings (MOUs) that include exchange of Ulemas between the two countries, provision of guarantee to the Islamic Values and publication of books. The MOUs will be signed between Saudi Arabia and Pakistan after completion of the work of the same.
**AJM/Ahmad**
PR
No. 316
PRESS RELEASE
Islamabad, 30th
January, 2010
Minister of State for Communication, Chaudhry Imtiaz Safdar Waraich called on Prime Minister Syed Yusuf Raza Gilani at the PM’s House here this afternoon.
He briefed the Prime Minister about matters relating to his Ministry and informed him on the status of ongoing development schemes in his constituency.
**PMMO/Ahmad**
PR No. 317
PRESS RELEASE
Islamabad, 30th January, 2010
Prime Minister Syed Yusuf Raza Gilani has strongly condemned the bomb blast at a security check post in Bajaur this afternoon.
The Prime Minister expressed deep grief and sorrow over the loss of lives in this tragic incident.
He ordered for immediate inquiry into the incident and provision of best medical facilities to the injured.
**PMMO/Ahmad**
PR
No. 318
PRESS RELEASE
Islamabad, 30th
January, 2010
Prime Minister Syed Yusuf Raza Gilani has said that Pakistan accords high priority to its relations with ASEAN countries, particularly with Vietnam as part of its “Look East Policy”. He congratulated Vietnam on assuming the Chairmanship of ASEAN for the current year and hoped that under Vietnamese stewardship, Pakistan’s cases for the full dialogue partnership and Free Trade Agreement with ASEAN countries will be finalized and asked the Vietnam government to take initiative in this regard.
The Prime Minister was talking to Mr. Nguyen Quang Thuc, the outgoing Ambassador of the Socialist Republic of Vietnam, who paid a farewell call on him at the PM’s House this afternoon.
The Prime Minister felicitated the Vietnam Ambassador on successful conclusion of his tenure and commended his relentless efforts in promoting bilateral relations, particularly in enhancing trade and towards further improving economic ties during the tenure of his posting in Islamabad. He also asked him to convey his best wishes to the Prime Minister of Vietnam.
While underscoring the need for high level visits to impart fresh impetus to the existing bilateral cordial ties, the Prime Minister asked the Ambassador to convey his invitation to the Prime Minister of Vietnam to undertake an official visit to Pakistan, on mutually convenient dates in the near future.
The Prime Minister stated it is imperative to promote exchange at every level including people-to-people contacts, visits of Parliamentarians as well as among the corporate sector of Pakistan and Vietnam to bring the two countries closer.
Ambassador Thuc thanked the Prime Minister and the Government of Pakistan for the complete cooperation and support given to him in discharge of his duties as Ambassador in Islamabad and expressed the confidence that his successor will also be accorded similar cooperation in the future. He termed Pakistan as his second home and vowed to continue working for the promotion of bilateral ties of both countries even in his future capacities.
**PMMO/Ahmad**
PR
No. 319
PRESS RELEASE
Islamabad, 30th
January, 2010
Dr. Fehmida Mirza, Speaker National Assembly proceeded to Karachi from Benazir International Airport Islamabad on Thursday evening. She would be leaving for Iran on a 3 days official visit alongwith a Parliamentary Delegation. Iranian Ambassador in Pakistan Mashallah Shakeri saw her off at Benazir International Airport.
On this occasion Iranian Ambassador apprised the Madam Speaker about the details of her upcoming visit to Iran. The Madam Speaker is visiting Iran on the invitation of Speaker Iranian Majlis-e-Shoora (Parliament), Ali Ahmed Larijani.
Madam Speaker would also meet Iranian Spritual Leader, Ayatollah Khomeini, Iranian President, Speaker of the Iranian Majlis-e-Shoora and other high government functionaries and parliamentarians during her visit to Iran. The visit will strengthen bilateral relations between the two fraternal countries and enhance mutual cooperation in all sectors of economy.
The delegation comprises of MNAs from all the political parties of the National Assembly and Officials of the National Assembly Secretariat.
**MT/Ahmad**
PR
No. 320
PRESS RELEASE
Islamabad, 30th
January, 2010
Outgoing Secretary Petroleum and Natural Resources, Mr. Mahmood Saleem Mahmood paid a farewell call on Prime Minister Syed Yusuf Raza Gilani at the PM’s House here this afternoon.
The Prime Minister appreciated the services rendered by him during his service and wished him the best in future.
Mr. Mahmood Saleem thanked the Prime Minister for his guidance during his tenure of posting as federal secretary.
**PMMO/Ahmad**
PR
No. 321
PRESS RELEASE
EXPERTS URGE THE NEED FOR MAINSTREAMING OF DISASTER RISK REDUCTION (DRR)
SYSTEM FOR SUSTAINABLE INDUSTRIALIZATION
Islamabad, 30th
January, 2010
In order to achieve the goal of rapid growth in the industrial sector, integration of the Disaster Risk Reduction system is mandatory to be adopted by all the public and private sector industrial units in the country.
This declaration was the outcome of a two-day long training course organized by the Ministry of Industries & Production, in collaboration with the National Disaster Management Authority (NDMA) and United Nations Development Program (UNDP), held on January 28-29, 2010 at a local hotel in Islamabad. The training was attended by representatives of various chambers of commerce & industries, industrial units and officials of various Ministries across the country.
During the two-day training course, the participants were trained on various concepts and terminologies, related to Disaster Risks Reduction, DRM systems in Pakistan, techniques of undertaking disaster risks assessment, capacity and vulnerability assessment. The training also focused on identification of industrial hazards and disaster risks in various industrial sectors of Pakistan, especially textile, steel, surgical, cutlery, sports goods, chemical, leather etc.
Mr. Shaukat N. Tahir, Senior Member, NDMA was chief guest for the concluding session of the training course. He awarded certificates to the participants and said that participation by high profile representatives of the industries would result in formulation of an effective plan for mainstreaming DRR into the development and management process. He stressed upon the participants to coordinate with the NDMA for technical assistance/planning in DRR for developing an effective mechanism to mitigate the risks of disasters in the industrial sector.
While appreciating the efforts of the NDMA, for holding such a productive training course, the members of industrial units said that it was an experience learning/sharing event which would be implemented by them with zeal and spirit.
**CMI/Ahmad**
PR No. 322
PRESS RELEASE
WATTO MEETS AJK LEADERSHIP
Islamabad, 30th January, 2010
Federal Minister for Kashmir Affairs & Gilgit-Baltistan, Mian Manzoor Ahmad Watto, in a derive to observe 5th February Kashmir Solidarity Day with national importance, held meetings with the Kashmiri leaders. Resultantly, he held a meeting with the former Prime Minister and President AJK, Sardar Abdul Qayyum and took advice from him how to observe Solidarity Day with national fervour.
Meanwhile, he met on Saturday with the Prime Minister of AJK, Raja Farooq Haider, Chief Minister Gilgit Baltistan, Syed Mehdi Shah and former Prime Minister of AJK, Sardar Muhammad Yaqoob at his residence on Saturday. They discussed issues regarding regional and national importance and to observe Solidarity Day with enthusiasm and honourably.
PR No. 323
PRESS RELEASE
ISSUES RAISED BY MEDIA IN ADB REPORT ON RPPS
Islamabad, 30th January, 2010
Today’s national press has carried extensive reporting and evaluation of the ADB report on the RPPs. In order to clarify the GOP position, an issue wise account has been developed which is indicated below:-
Un-utilized Capacity:
a. It has been alleged that GOP is not utilizing the available generation capacity to the maximum and artificial shortfall has been attributed. Factually, there is no idle or unutilized capacity with WAPDA / PEPCO Thermal Plants. The statement that 2000 MW was available does not hold water because two different activities viz use of so-called un-utilized capacity and induction of CFLs have been merged to form one activity. Actually, the 997 MW of plants are not permanently closed. These instead remain inoperative for short period and thus cannot be considered towards any permanent solution in this regard. Southern Electric Power (119 MW) is being dispatched regularly while issues with Japan Power have been settled and the plant shall be available by 10th February, 2010. M/s. Tapal and Gul Ahmad (IPPs) are already available in KESC system. Indeed 486 MW of gas based capacity remains compromised for 2 -3 months at GE Rental Plant Shaikhupura (150 MW), Alstom Renal Plant Bhikki (136 MW) and GTPS Faisalabad (200 MW) due to non-availability of gas in SNGPL system. The first two of these plants were inducted in the system as RPPs by the previous government in 2006 against unsolicited proposals and with unconfirmed gas supply contracts. These plants are to retire on 22.02.2010 and 23.06.2010 respectively. The government has no intention of extending their RSAs.
b. Conservation measures are already afoot, but the induction of 30 million CFLs under PM’s national CFL replacement plan is yet to start.
c. Considering the above 2000 MW as potential available capacity which could be tapped to reduce the present deficit is simply incorrect. However, availability of additional gas combined with provision of CFLs would surely help in reducing demand. It may, however, be contended that 4500 MW deficit during 2009 summers is bound to increase to at least 5000 – 5500 MW in 2010 summers if new capacities are not added. Therefore the government is doing its best to add more power to national grid from a combination of generation sources – be it IPPs, RPPs, hydel or others.
Weak Legal & Contractual Structure :
a. It again has been incorrectly reported that GOP made a recourse to weak legal and contractual structure while negotiating RPPs contracts. The factual position is that GOP financial difficulties constrained it to substitute Standby Letter of Credit (SBLC) with GOP guarantee and higher down payment. Moreover, annual fee payable to the banks (7-10%) for confirmation of SBLC is a non-recoverable expense while increases in advance payment has reduced the subsequent contractual payment liabilities of the buyer and, as such, payments are recovered through monthly rental charges. Confirmed SBLC of Rental Charges in US$ over a period of 5 years is a very strong financial instrument equivalent to cash in hand of RPPs against which it could raise (100%) debt financing as opposed to the offered GOP Guarantee along with (14%) down payment.
b. SBLC is encashable over the counter without any contestation by the buyer and also without any time delays. Whereas in case of GOP Guarantee, at least 45 days are required for the payments or upon full and final determination by arbitral tribunal in case dispute is raised by the GOP.
c. Actually, higher upfront payment to the seller were secured through an advance payment guarantee of higher equivalent amount in favour of the buyer and therefore there were no change in the net financial position of the parties and that is why higher upfront payments were not considered even by the ADB in their financial model. Change in down payments after receipt of bids is considered material or adverse only if it impacted the financial, equity, or project risk profile which is not the case. The changed conditions were in favour of the buyer rather then the seller and did not impact either the selection criteria or award criteria that could have obligated re-tendering.
d. The upfront payments actually are mobilization advances for development, engineering, procurement and construction stages of the contract which are common placed in all standard EPC contracts for the IPPs. In case of abandonment of the project, buyer has the right to terminate the contract and recover outstanding amounts due to it as a secured party from the sale of plant and machinery. Different contracts are signed pursuant to different Request for Proposals and governed by varying terms and conditions contained therein. Each successive round of bidding process was an attempt to overcome impediments faced in previous biddings and was designed to bring about improvements.
e. Bids floated by PEPCO for PPR Guddu, Young Gen, and Techno Extension were site specific with fixed capacities and specific Performance Guarantee amount was specified. Bids floated by PPIB included Performance Guarantee (@US$5000/MW). Assumption that penalties for late commissioning are equivalent to one month rental charges is not true in the RPPs cases. Penalties specified in such contracts were in accordance with the terms of respective RFPs.
f. Reasons for post - bid variations are logical as monthly rental charges vary from project to project based on the tariffs quoted in the bids. Actually, 3 types of securities are available with buyer to ensure commercial operations on target date. Firstly, prime security is Advance Payment Guarantee which is encashable to recover the advance payments made in case the Target Commercial Operations Date is not achieved by the Seller. Secondly, Performance Guarantee is encashable in full amount upon delay in the achievement of Target Commercial Operations Date. Thirdly, penalties are imposed in specified amounts recoverable from monthly rental charges.
Transparency Issues:
a. Power acquisition program for the RPP was duly authorised by the ECC and Cabinet, whereas NEPRA was consulted for terms and conditions of the rental contracts which were ultimately derived from the RFP that was again approved by the ECC. Requirement of an ICB as preferred mode for acquisition of the RPPs was recommended by NEPRA and implemented accordingly.
b. Different contracts were signed pursuant to different Request for Proposals and thus were governed by terms and conditions contained therein. Each successive round of bidding process was an attempt to overcome impediments faced in previous biddings and improvements were brought about.
c. Moreover, rental contracts are governed by the laws of Pakistan including Import Policy Order 2009. Import Policy Order incorporates implementation of specialized third party pre-shipment inspection regime for specified old and used plant and machinery with adequate safeguards for ensuring serviceability and significant residual value. These have been taken care of during all processing stages.
Tariff:
a. Most of the reports and analysis carried in the press about possible increase in tariff on account of 08 or 14 RPPs induction are incorrect. ADB’s calculation and prognosis regarding possible increase of power tariff on account of withdrawal of tariff differential subsidies during FY 2010-2011 and NEPRA determined monthly fuel prices adjustments due to possible increase in international oil price has been clubbed together as being on account of induction of RPPs – all of which is inherently incorrect. The truth is that induction of 08 RPPs in a higher demand growth scenario will result in tariff increase of only 6.1% and possible induction of 14 RPPs will increase the tariff by 9.99%. The tariff increase in case of low demand scenario would only be 3.7% and 7.4% respectively during 2010-2011. As such, any other increase in tariff due to withdrawal of subsidies or increase in fuel / gas prices or any negative change generation – mix due to drought condition cannot be considered as being on account of induction of renal power.
Load Shedding:
a. ADB’s contention that load shedding will not end even with induction of 14 RPPs in 2011-2012 is a qualified statement since induction of additional new generation capacities for 2012 and onwards would be needed – otherwise power deficit would again surface. It is also a fact that relegation or reduction in the RPP program would add on the present power deficit and mitigation thereof will take more time at a great cost to the economy. Thus, understanding this logic does not need any rocket science because demand in Pakistan is fastly growing and can only be serviced through new additions. It is because of this fact that government has gone for short term, mid term and long term solutions to the problem. As ADB required information / data for 2010 only, it was not provided details of mid term power generation plans. Moreover, when no RPPs or very few with generation capacities would start in 2010, RPP program will not have any impact on possible mitigation of power deficits.
Low Gas Supply:
a. The M/o Water and Power is in the process of negotiations with M/o Petroleum to enhance gas supply for thermal plants in order to optimize their full capacity generation. During peak winter season there are gas provision fluctuations in consideration of maximum domestic and industrial consumption patterns which have to be taken into account while addressing power generation issues during peak consumption season.
Conclusion:
a. In conclusion, it is stated that all the recommendations of the ADB report have already been approved by the GOP in its Cabinet Meeting on Wednesday, 27th January, 2010. The government’s perspective on various aspects of the ADB report are also explicitly stated in the comments attached to the ADB report placed on the website of PEPCO & PPIB.
PR No. 324
PRESS RELEASE
CHILDREN ARE CUSTODIAN OF OUR FUTURE: SHAHBAZ BHATTI
Islamabad, 30th January, 2010
Federal Minister for Minorities Affairs Mr. Shahbaz Bhatti said children are future of our country and there is a need to invest on our future and to focus on them.
Addressing the annual prize distribution ceremony of St. Paul High School, Wah, he said those who are misguiding children by handing guns in their hands are “enemies of humanity”.
“Children have their rights and they should be holding books and pens in their hands instead of tools to repair vehicles”, he asserted.
Terming child labor as the biggest evil of our society, he said government is trying to curb this social evil which is perturbing our social norms.
Terming terrorism and extremism as the greatest threats to our country, he said, “PPP government is determined to overcome these challenges and it will succeed in its aim”.
While paying rich tributes to armed forces, the minister categorically stated that every child of our country is a frontline fighter in the war against terror.
Shahbaz Bhatti urged terrorists to leave the path of militancy and make this country “peaceful place of living”.
He said that no religion preaches terrorism and extremism and all religions teach lesson of peace and brotherhood.
The Minister maintained that the steps being taken by the government for the empowerment of minorities are commendable.
He urged children to pay full attention towards their studies only then they will be productive citizens of the society.
The Minister on this occasion announced a prize money of one hundred thousand rupees for the children who performed on the occasion.
Earlier, the principal of the school welcomed the minister and other distinguished guests and highlighted the salient features and achievements of the school.
PR No. 325
PRESS RELEASE
FEDERAL COMMUNICATIONS MINISTER URGES TIMELY COMPLETION OF FIRST PHASE OF
NORTHERN BY PASS
Islamabad, 30th January, 2010
The Federal Minister for Communications Dr. Arbab Alamgir Khan Khalil has urged the NHA officials to timely complete the first phase of Northern Bypass so that access to the Central Asian States and Afghanistan through Pak-Afghanistan is strengthened and trade, tourism, industry and agriculture in the region get a boost. He said that with the completion of this highway, the economy of the country will surely improve.
He expressed these views while talking to NHA officials during his inspection visit of the construction work of the 1st Phase of the Northern Bypass. Earlier, the federal minister traveled from Islamabad to Peshawar through the Motorway and made stops-over at various points and inspected the construction work at the Motorway.
The federal minister also planted a sapling at one point and urged the officials to take good care of the trees along the Motorway. He also inspected the safety fencing along the Motorway.
During his inspection visit of the Northern Bypass, it was told that the 1st Phase of the Northern Bypass will incur two billion rupees and it will be completed in 2011, and the land owners, whose land has been reclaimed for the highway, have received their dues. Now all the land is under NHA’s custody and the contract has already been awarded.
The Federal Minister, while addressing the people of the area, present on the occasion, said that the present government is determined to improve the lives of the people by spreading a network of development works.
He said that the communications sector is the backbone of the economy and we intend to complete all under construction highways well within time and with the completion of Northern Bypasss, not only durable links will be established with the neighboring countries but it will also facilitate agriculture, tourism, trade and industry of the area.
PR No. 326
PRESS RELEASE
Islamabad, 30th January, 2010
Federal Coordinator for IDPs, Mohtarma Asma Arbab Alamgir chaired a meeting of party leaders’ from seven districts of Malakand Division, on the issues relating to IDPs. Managing Director of Pakistan Bait-ul-Maal Mr. Zamurad Khan also attended the meeting.
The meeting deliberated on the problems faced by IDPs and showed its strong resolve to finding their solution. The party leadership of the Malakand Division was assured of the settlement of issues of their areas. They were told that the President and the Prime Minister were also fully determined to address these problems. The meeting showed its full confidence over the President Asif Ali Zardari. They reiterated their commitment to stand by the party leadership in each and every circumstance.
The meeting decided to convene the workers’ convention of Malakand Division, as soon as possible, to plan an effective strategy for resolution of problems being faced by the residents of that area. The meeting was held in the Prime Minister’s Secretariat today.
PR
No. 327
PRESS RELEASE
Islamabad, 30th
January, 2010
Prime Minister Syed Yusuf Raza Gilani paid a surprise visit to the F.G. Girls Model Higher Secondary School, G-8/4, Islamabad today. During the visit he attended the 10th class of the School where the subject of Pakistan Studies was being taught. He also interacted with the students to assess their standard of knowledge. The Prime Minister was disappointed to observe that the knowledge of the students was very poor. The teaching staff capability was also below standard.
The Prime Minister has taken a serious notice of the declining standard of education in the Federal Government Institutions in Islamabad. The students also pointed out the shortage of teachers particularly in the fields of Biology, Mathematics and English subjects.
The Prime Minister has been pleased to observe that the existing teaching staff requires immediate capacity building and training in their relevant subjects. The teaching methodology of the staff also appeared to be archaic.
The Prime Minister has directed that the Ministry of Education in collaboration with the Federal Directorate of Education may take immediate necessary measures to chalk out a plan for improvement of the capacity building of the teaching staff. The training of all existing teachers be made mandatory to update their knowledge and to equip them with modern techniques of teaching. He also directed to fill the shortage of teachers in the Federal Government Institutions, where required on immediate basis.
The proposed capacity building/training programme for the Federal Government Schools teaching staff needs to be prepared within a period of 30 days for implementation. If needed, donor agencies shall also be associated for the same through the Economic Affairs Division.
PR No. 328
PRESS RELEASE
ARMY CHIEF MEETS PRIME MINISTER
Islamabad, 30th January, 2010
Chief of Army Staff, General Ashfaq Pervaiz Kayani called on the Prime Minister, Syed Yusuf Raza Gilani at the PM’s House this evening.
The Army Chief briefed the Prime Minister about his meetings with top officers of NATO in Brussels regarding new international strategy in Afghanistan. Chiefs of military staff from more than sixty countries attended the meeting at NATO Headquarters.
The Army Chief also briefed the Prime Minister about the on-going security forces operation in the South Waziristan. Overall national security situation also came under discussion in the meeting.
The Prime Minister praised the valor of soldiers and personnel of other law enforcing agencies who laid their lives for the national cause. He said that the nation is proud of its security forces who are striving for restoration of peace in the terror affected areas.