Gwadar transmission line: Iranian firm interested in execution of phase I contract accord

ISLAMABAD: Iranian firm M/s Sunir has shown interest in execution of second part of Gwadar transmission line phase one contract agreement, with complaints of non-payment of huge amount with respect to part one of the project by National Transmission and Despatch Company (NTDC).

On February 19, 2024, in a letter to Secretary Power, Managing Director M/s Sunir, Hasan Gholinezhad stated that after signing the amendment number 2(A) and according to the special instructions of Prime Minister for Pakistan, Sunir started the execution work of Gwadar transmission line immediately even before the starting contractual date.

The result of support from Power Division and all NTDC projects and hard work of Sunir was completion of 30 kilometres transmission line from Polan till Jiwani-Gwadar interconnection i.e. 132 kV line on February 5, 2023 despite security problems in Balochistan, heavy rains, flood and dust storms. The firm did all required works to connect the Gwadar transmission line in Iran and also in Jiwani-Gwadar interconnection point i.e. 132 Kv Line.

Tariff agreed with Iran on additional 100MW power to Gwadar

Now, since the company’s machineries, equipment, site office, warehouse and execution team are at site and from other side all transmission line materials are according to the technical specification of 220 kV in order to execute the complete transmission line(75 kilometres) and related GIS station, Iranian company has requested Secretary Power to instruct the start of second part of phase one (the related contract and its amendments are already signed, the company is ready to start the work with same price according to contract and related amendments) in Gwadar project including approximately 46km transmission line (220 kV) and GIS Grid Station which in this case the capacity of Gwadar TL will be fully used and accordingly other regions in Pakistan can use the power through this line.

However, in another communication, of February 18, 2024, Iranian company intimated Secretary Power, that it has completed Pak-Iran 220 KV interconnection transmission line for the import of additional 100 MW power from Iran to Gwadar region despite many problems like security issues and abnormal conditions like heavy rain and floods on January 2, 2023 in the shortest time period.

The company had started spade works on the project well before the formal signing of the amendment Number 2(A) to the contract of October 4, 2022 on the directions of Pakistani Prime Minister. The work was started without advance payment and by investment from its own resources just to show commitment to a brethren country but unfortunately this was one-sided commitment of payment for invoices. This project was formally inaugurated jointly by the Iranian President and Pakistani Prime Minister on May 18, 2023 transmission line project is currently in operation.

However, unfortunately, the company has not been paid complete payment by NTDC mainly due to the reason that revised PC-I of the project has not been approved which in fact is not related to the signed contract between NTDC and Sunir and is an internal matter of Pakistani Organisations. It would have been done at the time of execution and before completion of the project but unfortunately from last one year all payments have been withheld by NTDC due to PC-1 issue, which is causing severe cash constraints. Resultantly, the company is unable to clear the payments of its vendors.

The company had submitted claims of Euro 5,299,293.30 and Rs 36,113, 320.47 is still to be paid by NTDC (plus the deducted amounts related to retention of previous invoices) despite repeated requests in writings and numerous meetings.

Copyright Business Recorder, 2024