Identifier
Created
Classification
Origin
08KARACHI600
2008-11-10 11:49:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Consulate Karachi
Cable title:  

SINDH - DESPITE GOP CLAIM POWER OUTAGES CONTINUE IN

Tags:  ENRG PGOV ECON PK 
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RR RUEHLH RUEHPW
DE RUEHKP #0600 3151149
ZNR UUUUU ZZH
R 101149Z NOV 08
FM AMCONSUL KARACHI
TO RUEHC/SECSTATE WASHDC 0745
INFO RUEHIL/AMEMBASSY ISLAMABAD 0211
RUEHLH/AMCONSUL LAHORE 2604
RUEHPW/AMCONSUL PESHAWAR 4487
RUCPDOC/DEPT OF COMMERCE WASHDC
RHEBAAA/DEPT OF ENERGY WASHDC
RUEAIIA/CIA WASHDC
RUMICEA/USCENTCOM INTEL CEN MACDILL AFB FL
RHMFIUU/CDR USCENTCOM MACDILL AFB FL
RUEKJCS/SECDEF WASHINGTON DC
UNCLAS KARACHI 000600 

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: ENRG PGOV ECON PK
SUBJECT: SINDH - DESPITE GOP CLAIM POWER OUTAGES CONTINUE IN
KARACHI

Ref: Karachi 587

UNCLAS KARACHI 000600

SENSITIVE
SIPDIS

E.O. 12958: N/A
TAGS: ENRG PGOV ECON PK
SUBJECT: SINDH - DESPITE GOP CLAIM POWER OUTAGES CONTINUE IN
KARACHI

Ref: Karachi 587


1. (SBU) Summary. An official with the Karachi Electric Supply
Company (KESC) disagreed with a GOP statement that the frequent
power outages had ended on November 1. Members of Karachi's major
trade associations agreed with his assessment, but expected the
frequency of the outages to decrease - an assessment the KESC
official believed was unrealistic. KESC is facing a supply
shortfall of up to 600MW and does not appear poised to resolve this
problem in the near term. End summary.


2. (SBU) In a November 3 conversation with Post, Karachi Electric
Supply Company (KESC) Operations Director Siddiqui disputed a recent
media report that quoted Federal Minister of Power Raja Pervez
Ashraf as claiming that power outages had ended in Pakistan as of
November 1. In the report, Ashraf said that the shortages had ended
due to an increase in water levels in the country's rivers and dams
(that can be used for hydroelectric generation).

Industrial Associations Say Shortages Continue
-------------- -


3. (SBU) Sindh Industrial Trading Estates (SITE) Association of
Trade and Industry Chair Nisar Shekhani, Karachi Chamber of Commerce
and Industry (KCCI) Public Relations Manager Shafiq Beg, and Korangi
Association of Industry (KATI) Secretary Nehal Akhtar all agreed
that Karachi's power outages, which average 6 to 8 hours daily, have
continued unabated, even after November 1. However, they expected
the length of load-shedding would gradually decrease in the upcoming
winter months as demand lessens. In contrast, KESC's Siddiqui said
that while electricity demand typically decreases around 30 percent
in most of the country during this season, it has historically
remained relatively high in Karachi.

KESC Not Meeting Demand
--------------


4. (SBU) Frequent, unpredictable power outages have plagued
Karachi's business community for well over a year as the city's
decrepit private power provider, KESC, has struggled to meet demand.
These outages, combined with a recent rate hike, have begun to take
a toll on industry (reftel). This metropolis of 18 million suffers
from an estimated shortfall of about 600MW of power - around 40
percent of KESC's claimed 1500MW power generation capacity.


5. (SBU) Comment: Faced with an estimated nine percent increase
in demand annually and an outdated and inefficient transmission and
distribution system, it is doubtful that KESC will be able to meet
the city's energy demands anytime soon. Even if the company's
announced new power generation plans come to fruition, it will take
several years and require a significant capital investment by its
new owner, Dubai-based Abrajj Capital, before the company can come
close to satisfying consumer needs. Karachi's newspapers frequently
announce new government plans for power generation facilities, most
listed as in the "planning stage," but real action has yet to
materialize. Frequent power outages will most likely continue to
plague Karachi's citizens and businesses over the next few years.

Anske