A delegation of seven British oil and gas companies has arrived in Islamabad to explore opportunities in Pakistan's energy sector, diplomatic sources said Thursday.
The group, sponsored by the Society of British Gas Industries and the Trade Partners UK, has already held talks with industry officials in Karachi and Lahore.
The group was "very positive" about the potential opportunities in Pakistan, a British High Commission statement said.
"It is quite clear that there are opportunities, here in Pakistan, for British companies supplying the oil and gas sector," it quoted a member as saying upon the delegation's arrival here on Wednesday.
During their stay in Pakistan the group is scheduled to have meetings with the petroleum ministry officials and major private sector investors in the oil and gas industry, it said.
The visit came as the state-run Water and Power Development Authority (Wapda) amicably resolved a several year-old dispute over power tariff and management with Britain's International Power Company (IPC) which purchased 36 percent shares in the country's Kot Addu Power Company (Kapco) in 1996.
Under the agreement signed by IPC Chief, Peter Giller, and Wapda Chairman, Lieutenant General Zulfiqar Ali Khan, Kapco agreed to reduce the tariff from existing 5.6 US cents to 4.8 cents per kilowat hours to Wapda.
Under the revised power purchase agreement Wapda will save 1.5 billion dollars over the next 25 years, officials said adding that Wapda would also have a role in the Kapco management because of its 64 percent share in the project.
Peter Giller of International Power observed that "dispute was more psychological than financial." He said his company had already made an investment of more than 400 million dollars and "we are optimistic that in future our investment will increase."
Kapco and Hub Power Company (Hubco) were involved in a bitter tarrif row with Wapda. Finance Minister Shaukat Aziz said the accord would substantially help resolve the dispute with Hubco also.
Wapda claims Hubco and several other independent power producers secured exorbitant rates during former prime minister Benazir Bhutto's government.
Hubco denies the charge.
Pakistani military ruler General Pervez Musharraf has vowed to resolve the tariff tussle which has badly shaken investor confidence -- ISLAMABAD (AFP)
© 2000 Al Bawaba (www.albawaba.com)
