Controversy erupts over privatisation of PoGB power projects

Public TV English
Public TV English
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HUNZA(PoGB): After the privatisation of power projects in Pakistan-occupied Gilgit-Baltistan, leaders of the Awami Workers Party expressed concern over the decision to transfer four power plants and all future electricity projects, and all water resources in the district, to a multinational corporation.

The privatization of power projects has become a contentious issue, giving rise to concern among local leaders and communities.

According to a press release, the Awami Workers Party Gilgit-Baltistan District Hunza chapter declared, “We believe this move jeopardizes the people of Hunza by potentially depriving them of their natural water resources, jobs, and land, and could entrap them in global corporate capitalism.”

A controversial and opaque agreement set for August 14 will transfer four public sector power plants in Hunza–Mayoon, Hassanabad, Khyber, and Misgar–to Industrial Promotion Services (IPS), a multinational company funded by the World Bank and EU under the guise of a public-private partnership.

The statement further criticized the agreement, asserting, “We contend that this deal lacks legal legitimacy as Hunza remains a disputed and unsettled district. The local population, who are the rightful stewards of the land and water resources according to international agreements, were neither consulted nor gave their consent. Additionally, the elected representatives and political leadership of the area were also excluded from this process.”

There are fears that privatization could lead to the exploitation of local resources and negatively impact the livelihoods of residents. The potential for increased utility costs and reduced access to essential services are major concerns for local communities.

Overall, the privatization of power projects in Gilgit-Baltistan is seen by many as a controversial move. Communities in Gilgit-Baltistan are worried that decisions made by multinational corporations or distant authorities may not align with their needs or interests.

Moreover, the management and development of power projects in Gilgit-Baltistan have been marred by concerns about corruption, which has heightened local frustrations.

There have been allegations of a lack of transparency in the decision-making processes for power projects. The details of agreements, contracts, and project management are often not made publicly available, leading to suspicions of corrupt practices and misuse of authority.

Reports suggest that funds allocated for power projects may be misappropriated or mismanaged. Corruption can lead to the diversion of financial resources away from project development and maintenance, impacting the quality and efficiency of power infrastructure. (ANI)

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