ISLAMABAD: The Supreme Court (SC) was told on Thursday that Wapda had been paying a monthly rent of $9.49 million to three Rental Power Projects (RPPs) - Karkey, Reshma and Gulf. The SC directed the counsel for Reshma Power Plant to deposit outstanding amount of two billion rupees mobilisation advance with a mark-up into Wapda account. The court asked NEPRA to submit details of Reference Tariff and Generation Tariff of the RPPs before the court.
It needs to be mentioned here that Reshma plant, which is supposed to produce 200 megawatts (MW) of electricity, is actually producing only 5MW electricity. The counsel for the plant submitted a draft of Rs 2.53 billion to the SC with a plea that the project had already started producing electricity but if required, the company was ready to return the amount paid to it in advance.
A division bench of the SC comprising Chief Justice Iftikhar Muhammad Chaudhry and Justice Khilji Arif Hussain has been hearing a suo motu and identical petitions filed by federal minister Faisal Saleh Hayat and PML (N) leader Khawaja Muhammad Asif against RPPs.
During the course of hearing, amicus curie Anwar Kamal, advocate Supreme Court Akram Sheikh, Faisal Saleh Hayat, Khawaja Muhammad Asif, Additional Secretary Wapda, and MD Pepco appeared before the bench. Former Federal Minister for Water and Power Raja Pervez Ashraf, Private Power Infrastructure Board (PPIB) legal staff and Nepra representatives were also present in the court.
The bench was informed that Wapda had paid Rs 65.18 million Customs Duty for 9 RPPs, including Rs 36.74 million for Karkey Power Project. The Chief Justice expressed his surprise to learn that even Wapda had also paid the Customs Duty for the RPPs. He showed his displeasure over the manner in which contracts for RPPs were awarded.
On the occasion, Syed Faisal Saleh Hayat alleged that Iqbal Z Ahmed was awarded contracts for five RPPs and that he allegedly transferred substantial amount of Rs 1.7 billion abroad. Hayat added that Nepra was now disapproving RPPs, adding that had the Authority had shown its responsibility two years ago the situation would have been entirely different today.
He said that Ministry of Water and Power was passing the buck to Cabinet which, he said, was not responsible for the acts of the ministry. According to him, the nation is being pushed towards darkness. Justice Khilji then remarked that the nation was not being pushed towards darkness but "you are" forcing the nation towards darkness.
Anwar Kamal while contended that the Letter of Award (LoA) of RPPs was issued by PPIB whereas the Rental Service Contract (RSC) was signed by Genco. He added that according to International Competitive Bidding (ICB) bidders were supposed to determine tariff.
According to him, National Transmission and Dispatch Company (NTDC) purchases power from the Karkey at the rate of Rs 42 per unit which is later sold to KESC at Rs 7 per unit and then KESC supplies the power to its consumers at Rs 9 per unit. Kamal added that cost difference of Rs 33 is realised from the consumers all over the country which, he said, was an unjustified practice. The hearing was adjourned till November 21.
Comments
Comments are closed.