8 RPP would cause a deficit of Rs 49 billion annually

Asian Development Bank (ADB) has reported that the Government would have to bear a deficit of Rs 49 Billion annually if it would install eight RPPs. Agreements should be renegotiated.Water and Power Development Authority (WAPDA) has released the audit report of ADB. Load Shedding would not come to a complete end even after the installation of the Rental Power Plants (RPP). Tariff of electricity would have to be raised in 2011 as subsidy would be withdrawn. In 2011 fourteen rental power plants would increase the price by 87%. The tariff in 2011 would raise the electricity prices to Rs 10.23 per unit. Advance payment of 14% to the companies was a mistake. If the Government installs 8 RPP then it would face a deficit of Rs 49 billion annually, while if the Government opts for 14 RPP then the deficit would swell up to Rs 79 billion per year. 500MW of IPPs are not being utilized to produce electricity due to administrative reasons.