ISLAMABAD (IRNA) -- The World Bank (WB) has come down hard on the Pakistani government for allowing the Water and Power Development Authority (WAPDA) a public sector entity to install a 500 MW thermal powerhouse, arguing it is a negation of the ongoing process of corporatization power sector.

According to The News, a senior government official said the World Bank expressed its dismay on the government's recent decision allowing WAPDA to install a thermal power house of 500MW at Chichoki Malian, saying it will undermine the government's IPP (independent power producers) policy and lead to further inefficiency.

The government has permitted WAPDA to initiate work on installation of thermal powerhouse, keeping in view increasing power load, for which the country has been facing unprecedented load shedding and President General Pervez Musharraf had to apologize in his last televised address.

However, according to a World Bank letter written to Water and Power Secretary Ashfaq Mehmood on July 12, it was understood that consideration is being given to a thermal generation project to be implemented in the public sector.

While recognizing the need for a fast track solution to the current and projected shortfall in generation capacity, getting WAPDA involved again in thermal power generation could undermine the government's IPP policy and lead to further inefficiency.

The country would benefit more from fast track implementation of the private sector IPPs, rather than expanding WAPDA's capacity.