The World Bank has arranged talks between Pakistan and the country's largest independent power producer Hubco to break a deadlock over their bitter tariff row, a newspaper said Saturday, November 11.
In a letter World Bank president James D Wolfenson has requested Pakistani Finance Minister Shaukat Aziz to meet with Hubco directors in the Gulf state of Dubai on November 15, Dawn said, quoting government sources.
An official of the bank will also participate in the talks, the sources told the paper.
The more than three-year old row centers on the demand that Hubco reduce the rate at which it sells electricity to state-run Water and Power Development Authority,
Hubco said last week it had made an offer in September to reduce the tariff from 6.7 cents to 5.5 cents per kilowatt-hour. But Wapda reportedly wants the company to lower the rate still further.
Saudi Arabia's Xenel Industries and Britain's National Power have major stakes in Hubco.
Pakistani military government, which emerged from a coup late last year, has vowed to seek an early solution to the dispute which is seen to be impeding the flow of foreign investment.— (AFP)
© Agence France Presse 2000
© 2000 Mena Report (www.menareport.com)