ISLAMABAD-While pointing out irregularities in the award of contract for Dasu Transmission Line Project, Senate Committee on Power Chairman Saifullah Abro has said that the World Bank (WB) is financing the project but it doesn’t allow the bank to dictate the terms to the Government of Pakistan and award the project to its blue eyed consultant.
The Senate Standing Committee on Power that met under its Chairman Saifullah Abro was informed by the official of the Power Division that average power tariff has increased by Rs9 per unit during last one year. The committee also took stern notice of recent increase in electricity tariff. Officials of Power Division informed that as of March 2023, per unit price stands at Rs30.55. Officials said that capacity payments to different IPPs is the major reason behind the increase in per unit cost. Senator Saifullah Abro remarked that the government should freeze capacity payments to IPPs by keeping in view the current inflation in the country. He also directed the Power Division to provide details of capacity payments made so far to IPPs in the next meeting. Taking up the matter of construction of 765KV, double circuit transmission line from Dasu Hydro Power Station to Islamabad, the Saifullah Abro remarked that the evidence submitted by NTDC clearly shows that irregularities have been committed while awarding contract to GOPA and directed the NTDC to submit all the necessary documents in the next meeting. The project was financed by World Bank with a cost of $700 million. In the previous meeting, the committee recommended to put the agreement at hold and provide details of hiring consultant GOPA. However, World Bank has maintained that the Senate Standing Committee is not authorised to halt the process. Senator Saifullah Abro claimed that World Bank is financing the project but it doesn’t allow the World Bank to dictate the terms and award the project to his blue eyed consultant.
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NTDC Managing Director (MD) Rana Abdul Jabbar Khan said that the work has been given to the contractor on the request of the World Bank. Senator Saifullah Abro said that the World Bank cannot give dictation to the Government of Pakistan. Strange conditions were placed in the advertisement of expression of interest for hiring the consultant company, Abro remarked. Rana Abdul Jabbar Khan, MD NTDC, apprised, “The project was advertised on 30th December, 2016. 20 firms submitted the applications and out of which six firms were shortlisted.”
“Power Division is always trying to make their favorite retired officer as Managing Director NTDC,” Saifullah Abro remarked, adding that preference is given to retired officers of DISCOs instead of experts. “Officers like you have destroyed the Power sector,” Senator Abro further remarked. “After seeing the briefing of NTDC officials, it seems that the Federal Energy Minister had never taken a briefing from them,” Senator Abro said. Senator Hidayatullah said that NTDC officials are unable to tell anything. If the Federal Minister of Energy takes a briefing from MD NTDC, he will know about his performance, he added. The committee was dissatisfied from the NTDC briefing and said that the company’s officials could not brief the committee properly on a single point. NTDC does not have the required experienced and technical staff to appoint consultants or award contracts, the chairman committee noted.
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NTDC is not providing us documents, Abro said. Attempts were made to mislead the committee with the terms of the World Bank, he maintained. The committee will prepare its report regarding the hiring of consultants for Dasu double transmission line after examining all this matter carefully, Abro said. The chairman directed NTDC that all the proceedings to appoint a consultant should be provided to the committee. “The committee deals with Power Division, we are not accountable to the World Bank,” Saifullah Abro noted.
Moreover, the committee examined the bidding process of K-Electric. Officials of Privatisation Commission apprised the committee that the process was initiated in 2002 and four private entities submitted Expression of Interest (EOI), but only two entities qualified for bidding process which includes Kanooz Al Watan and Hasan Associates with offering bid of Rs1.65 per share (Rs15.86 billion) and Rs1.01 per share (Rs9.71 billion), respectively. However, Kanooz Al Watan did not make the balance payment and K-Electric was awarded to Hasan Associates at Rs1.65 per share amounting to Rs15.86 billion, they added. Furthermore, officials informed that Financial Adviser was appointed by Asian Development Bank to evaluate the value of K-Electric and complete its privatisation process. Senator Saifullah Abro opined that while evaluating the price of K-Electric, what factors were taken into consideration by Financial Adviser. He also directed the Privatisation Commission to provide appointment details of Financial Adviser.
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