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Privitisation commission slams KESC deal

Metropolitan
Electricity, cable theft irks KESC
ISLAMABAD: The Privatization Commission in its latest report termed the privatization agreement with the KESC, ‘a week agreement.’
‘The Case Study of KESC,’ an analysis conducted by the Privatisation Commission revealed that the new management was in breach of the agreement with the Government of Pakistan.
The report said that the new management, Abraaj Entity, failed to install additional generation capacity of 1,000 megawatts within three years of the privatization and that there was also no improvement in the transmission system. The Commission has recommended that the government conduct a comprehensive ‘technical audit’ of power plants owned and operated by the KESC.When contacted, the Federal Minister for Privatization Syed Naveed Qamar said that the KESC example has overshadowed the entire investment climate in the country.
The minister said that there was a lot of documentation and many legal aspects that missing in the agreement. For example, Qamar said, the purchase agreement which was not as strong as it should be, as it was missing the bank guarantees that required judging the worth of commitments of further investments in both distribution and generation. These commitments were locked in without much needed bank guarantees, he added.
Earlier, in the National Conference on ‘Privatisation with Public Private Partnership,’ the World Bank’s country Director in Pakistan, Yusupha Crookes said that the privatisation policy of the present government was complicated, because of which transactions continued to linger. Mr Crookes suggested the government streamline and simplify its policies so that foreign investors could easily understand them.
Syed Naveed Qamar in his welcome address said that the government has revamped its privatisation policy and decided that the government will not sell more than 26 per cent of share of any entity. He said that 12 per cent shares of an entity will be reserved for workers.
The Advisor to Prime Minister on Finance, Shaukat Tarin, said that the government couldn’t afford paying huge subsidies on electricity for long. Therefore, Tarin said, the government has planned to privitise all the power generation and distribution companies as soon as possible.
Later, talking to reporters, Tarin made assurances that the government would not increase power tariffs until load shedding was completely halted in December 2009. To a question he admitted that the increase in petroleum prices would be inflationary and it would be a challenge for State Bank to maintain the money supply. Tarin went on to say that the government wouldn’t interfere in the setting of petroleum prices and all benefits would be passed to consumers as prices fall in international market.
President Asif Ali Zardari kicked off consultative process within the party for constitutional reforms. [PTV News] 04 Jul, 2009
Debutant Aamer rocks Sri Lanka in first Test

GALLE: Pakistan's teenaged fast bowler Mohammad Aamer grabbed two quick wickets before Sri Lanka recovered from a shaky start in the first cricket Test here Saturday.The hosts went to lunch on the opening day at 104-3 after being sent in to bat by Pakistani captain Younus Khan on a wicket freshened up by early morning rain in this coastal town.Sri Lanka slipped to 21-2 before Tharanga Paranavitana (57 not out) and Mahela Jayawardene (30) retrieved the situation by adding 75 for the third wicket.The 17-year-old Aamer, who was one of Pakistan's heroes in their triumphant World Twenty20 campaign in England last month, justified his Test debut at the expense of seasoned all-rounder Abdur Razzaq.The left-armer struck with the last ball of his first over in Test cricket when he bowled opener Malinda Warnapura for two as the batsman was beaten by pace and chopped the ball on his off-stump.Aamer then removed Sri Lankan captain Kumar Sangakkara in his third over, forcing the star batsman to edge a short ball to Shoaib Malik at third slip.Aamer should have taken two more wickets but Malik dropped Paranavitana, then on four, and wicket-keeper Kamran Akmal let off Jayawardene before the batsman had scored a run.Akmal made amends 90 minutes later when he snapped up Jayawardene off fast bowler Abdur Rauf, but not before the former Sri Lankan captain had partnered Paranavitana in the rescue act.The three-match series is the first between the two nations since armed gunmen attacked the Sri Lankan team bus in the Pakistani city of Lahore on March 3 while on way to resume a Test match.The attack injured seven Sri Lankan players and killed eight local security men.The first Test began 13 days after Pakistan defeated Sri Lanka in the World Twenty20 final at Lord's on June 21.Pakistan opted for a lone specialist spinner in Saeed Ajmal, while veteran batsman Mohammad Yousuf returned to the Test side after 18 months, having broken links with the unauthorised Indian Cricket League.Aamer was one of the three debutants for Pakistan alongside Ajmal and Rauf.Sri Lanka brought in left-arm spinner Rangana Herath to partner Ajantha Mendis in the absence of world record holder Muttiah Muralitharan, who was ruled out with a knee injury.
Costa Rica is world's greenest, happiest country

Costa Rica is the greenest and happiest country in the world, according to a new list that ranks nations by combining measures of their ecological footprint with the happiness of their citizens.
Britain is only halfway up the Happy Planet Index (HPI), calculated by the New Economics Foundation (NEF), in 74th place of 143 nations surveyed. The United States features in the 114th slot in the table. The top 10 is dominated by countries from Latin America, while African countries bulk out the bottom of the table.
The HPI measures how much of the Earth's resources nations use and how long and happy a life their citizens enjoy as a result. First calculated in 2006, the second edition adds data on almost all the world's countries and now covers 99% of the world's population.
NEF says the HPI is a much better way of looking the success of countries than through standard measures of economic growth. The HPI shows, for example, that fast-growing economies such as the US, China and India were all greener and happier 20 years ago than they are today.
"The HPI suggests that the path we have been following is, without exception, unable to deliver all three goals: high life satisfaction, high life expectancy and 'one-planet living'," says Saamah Abdallah, NEF researcher and the report's lead author. "Instead we need a new development model that delivers good lives that don't cost the Earth for all."
Costa Ricans top the list because they report the highest life satisfaction in the world, they live slightly longer than Americans, yet have an ecological footprint that is less than a quarter the size. The country only narrowly fails to achieve the goal of what NEF calls "one-planet living": consuming its fair share of the Earth's natural resources.
The report says the differences between nations show that it is possible to live long, happy lives with much smaller ecological footprints than the highest-consuming nations.
The new HPI also provides the first ever analysis of trends over time for what are supposedly the world's most developed nations, the Organisation for Economic Cooperation and Development (OECD).
OECD nations' HPI scores plummeted between 1960 and the late 1970s. Although there have been some gains since then, HPI scores were still higher in 1961 than in 2005.
Life satisfaction and life expectancy combined have increased 15% over the 45-year period for those living in the rich nations, but it has come at the cost of a 72% rise in their ecological footprint. And the three largest countries in the world – China, India and the US, which are aggressively pursuing growth-based development models – have all seen their HPI scores drop in that time.
The highest placed western nation is the Netherlands. People there live on average over a year longer than people in the US, and have similar levels of life satisfaction – yet their per capita ecological footprint is less than half the size. The Netherlands is therefore over twice as environmentally efficient at achieving good lives as the US, Nef says.
The report sets out a "Happy Planet Charter" calling for an unprecedented collective global effort to develop a "new narrative" of human progress, encourage good lives that don't cost the earth, and to reduce consumption in the highest-consuming nations – which it says is the biggest barrier to sustainable wellbeing.
Britain is only halfway up the Happy Planet Index (HPI), calculated by the New Economics Foundation (NEF), in 74th place of 143 nations surveyed. The United States features in the 114th slot in the table. The top 10 is dominated by countries from Latin America, while African countries bulk out the bottom of the table.
The HPI measures how much of the Earth's resources nations use and how long and happy a life their citizens enjoy as a result. First calculated in 2006, the second edition adds data on almost all the world's countries and now covers 99% of the world's population.
NEF says the HPI is a much better way of looking the success of countries than through standard measures of economic growth. The HPI shows, for example, that fast-growing economies such as the US, China and India were all greener and happier 20 years ago than they are today.
"The HPI suggests that the path we have been following is, without exception, unable to deliver all three goals: high life satisfaction, high life expectancy and 'one-planet living'," says Saamah Abdallah, NEF researcher and the report's lead author. "Instead we need a new development model that delivers good lives that don't cost the Earth for all."
Costa Ricans top the list because they report the highest life satisfaction in the world, they live slightly longer than Americans, yet have an ecological footprint that is less than a quarter the size. The country only narrowly fails to achieve the goal of what NEF calls "one-planet living": consuming its fair share of the Earth's natural resources.
The report says the differences between nations show that it is possible to live long, happy lives with much smaller ecological footprints than the highest-consuming nations.
The new HPI also provides the first ever analysis of trends over time for what are supposedly the world's most developed nations, the Organisation for Economic Cooperation and Development (OECD).
OECD nations' HPI scores plummeted between 1960 and the late 1970s. Although there have been some gains since then, HPI scores were still higher in 1961 than in 2005.
Life satisfaction and life expectancy combined have increased 15% over the 45-year period for those living in the rich nations, but it has come at the cost of a 72% rise in their ecological footprint. And the three largest countries in the world – China, India and the US, which are aggressively pursuing growth-based development models – have all seen their HPI scores drop in that time.
The highest placed western nation is the Netherlands. People there live on average over a year longer than people in the US, and have similar levels of life satisfaction – yet their per capita ecological footprint is less than half the size. The Netherlands is therefore over twice as environmentally efficient at achieving good lives as the US, Nef says.
The report sets out a "Happy Planet Charter" calling for an unprecedented collective global effort to develop a "new narrative" of human progress, encourage good lives that don't cost the earth, and to reduce consumption in the highest-consuming nations – which it says is the biggest barrier to sustainable wellbeing.
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