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The Japanese government, that pulled the plug on a US$ 30 million program loan linked to power sector reforms, says government will have to renegotiate funding under its new unbundling plan for the CEB. The Power Minister said a deal for reforming the loss making CEB was agreed to with unions last week.
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A committee set up to recommend reforms in the sector proposed to the Cabinet that CEB Act be amended to become the holding company of a number of limited liability companies to do power generation, transmission and distribution.
Under earlier reform proposals the CEB Act was to be repealed after the limited liability companies are set up under Treasury ownership.
The Cabinet agreed to amend the CEB Act for it to become a holding company and amend the Electricity Reforms Act to support the new ownership structure despite opposition from some Marxist backed unions.
The Japan Bank for International Cooperation (JBIC), that withdrew a US$ 30 million loan that could have helped reduce the s