Neelum-Jhelum surcharge: Senate body for stopping collection through power bills

ISLAMABAD: Senate Standing Committee on Planning, Development and Special Initiatives has recommended stopping immediately the collection of Neelum-Jhelum surcharge through electricity bills from the consumers.

The Committee met with Senator Agha Shahzaib Durrani in the chair at the Parliament House on Tuesday.

The Committee discussed Neelum-Jhelum Hydropower Project, Diamer-Bhasha Dam, and Islamabad Metro Bus Service Project.

The members of the Committee expressed their serious concern over the charging of Neelum-Jhelum surcharge through electricity bills from the consumers, while the project has been completed.

Committee Chairman, Agha Shahzaib Durrani, said, "At what capacity, the government is collecting Neelum-Jhelum surcharge through electricity bills, while the project is fully functioning. Why the money is being collected from the people, while their lives are already in a miserable condition due to the price hike."

The officials of the Water and Power Authority told the Committee that a summary had been submitted to the Economic Coordination Committee (ECC) to divert the collection of Neelum-Jhelum surcharge to Diamer-Bhasha Dam. He said Rs6 billion was collected annually in the form of Neelum-Jhelum surcharge.

The members of the Committee said that first the government had to change the name for collection of surcharge on Neelum-Jhelum then to send a new summary to the ECC in the name of Diamer-Bhasha Dam surcharge.

The Standing Committee sought the details of imposition of surcharge at its next meeting, and recommended immediate removal of Neelum-Jhelum surcharge from electricity bills.

The Committee recommended that the government should send electricity bills without Neelum-Jhelum surcharge next month (December).

The Standing Committee was briefed in detail about the practical and financial progress of Diamer-Bhasha Dam and Mohmand Dam projects. Referring to Bhasha Dam, it was informed that the height of this dam is 272 meters with a storage capacity of 8.1 million acre feet, which can generate 4.5 thousand megawatts of electricity. This project will be completed in 8.5 years.

The Committee was told that PC-I of the project is Rs480 billion, which was approved by the ECNEC on November 14, 2018. The project, to be completed in 2029, will create 16,000 jobs, including 35 percent foreign commercial funding, 33 percent WAPDA, and 26 percent PSDP grants.

The Committee was informed that the project had a board of directors which would consist of public and private members. The Committee sought details of the procedure for appointment of members.

The Committee was informed that a joint venture would be set up with a Chinese company and a Pakistani company. This will include 70 percent Chinese companies and 30 percent Pakistani contractors. It was also informed the Committee that the first PC-I was Rs60 billion which was revised to Rs101 billion, and then revised to Rs175 billion.

About Mohmand Dam, the Committee was told that it would generate 800 megawatts of electricity and supply 304 million gallons of water a day to Peshawar. The project will be completed in five years and eight months.

About Islamabad Metro Bus Service Project, the Capital Development Authority (CDA) official told the Committee that they did not have the authority to run it.

He said the CDA had drafted an ordinance and submitted it to the Interior Ministry, which would be tabled in the Parliament House.

He said that a mass transit authority would be set up, adding it was necessary to set up an authority for ownership of the project. He said the CDA had requested the Punjab Transit Authority but it refused to take up the project.

He said the buses could not be procured till funding was provided. He said the issues would be resolved in a better way and the project would be completed as soon as possible, so that the people could benefit.

Regarding the progress in the water projects of the PSDP of Sindh province for 2019-2020, the Committee expressed its displeasure over the absence of the secretary agriculture Sindh, and decided to review the matter in his presence in the next meeting.

Copyright Business Recorder, 2020