Foreign-funded power projects: Senate panel demands action against malpractice culprits

ISLAMABAD: The Senate Standing Committee on Economic Affairs, while expressing serious concerns over lack of accountability and delay in foreign-funded power projects, called for strict action against those involved in malpractice.

The Senate Standing Committee on Economic Affairs, chaired by Senator Saifullah Abro, met here on Tuesday, to discuss all ongoing and completed projects related to power sector (NTDC projects) multilateral, bilateral partners and UN agencies including their proposals, tendering process along with consultant and up to date progress, interest paid by federal government/departments and any other related information from 2002 till date and complaints received during the tendering process of all ongoing and completed projects of power sector under multilateral, bilateral partners and UN agencies.

The Economic Affairs special secretary provided an update on completed and ongoing projects in the power sector. However, Abro pointed out that no project had been fully completed or finalised, citing the Tarbela 5th Extension Hydropower (T5HP), 500KV double circuit TL under World Bank as a specific example.

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He noted that although the contract was signed in July 2022, defects were identified afterward. He emphasised that contract clearly stipulated a 7-8 month mobilisation period and questioned whether the agreement had been finalised without securing the required performance guarantee. Despite progress in some areas, he expressed concern over the prolonged finalisation of certain projects.

While reviewing delays in NTDC projects, Abro questioned the protracted timeline, highlighting that the contract was awarded in 2020 and should not have taken this long to finalise. He, along with other committee members, underscored the importance of transparency in all stages of project execution.

The DMD, NTDC also informed the committee that process of procurement in NTDC needs to be improved and under process for smooth completion of project in future. A procurement policy will be approved by mid – April, 2025 in this regard.

He also recommended including clauses in procurement policies to address corruption and employee negligence, asking the ministry to share an amended draft policy with the committee. Additionally, he requested detailed information about individuals responsible for the delays and action to be taken against officials involved in it.

Dasu HPP (Transmission Line) 765KV TL, Abro noted that 114 transmission towers out of a planned 64 had been completed, with 252 towers still under construction.

He questioned the timeline for completing the remaining foundations and demanded clarity on when the 114 foundations were finalised. He also inquired why only 83 towers out of the 109 completed foundations were erected and requested deadlines for the remaining 71 towers. The committee recommended NTDC to submit the Gantt Chart indicating number of towers completed or under construction to the committee.

The committee also discussed the delays in the hydropower project, specifically Progress Lot-III. Abro highlighted concerns about inefficiencies, asking, “Who was responsible for the bidding documents? Why were these not included in the TOR? If new questions arose, how long did it take to address them? What actions were taken to mitigate delays?” He urged that the details of delays be shared with the committee members.

Abro emphasised the importance of transparent criteria for hiring consultants, raising concerns about discrepancies in NTDC’s hiring practices. He pointed out that the 765kV transmission line project is a first-of-its-kind initiative, yet there were evident issues with the experience and technical approach.

He called for the sharing of bidding data sheets and tender documents with the committee. The committee also recommended NTDC to provide the list of key experts to the committee.

While scrutinizing Lot IV of the Dasu HPP (Transmission Line) 765KV TL, Abro expressed serious concerns about accountability and called for strict action against those involved in malpractice. The committee was informed that 1st lowest bidder submitted Rs35 billion as its final price at the time of bid opening.

However, the committee found out that earlier the taxes amount was not included in the bid. The evaluation was done as per tender documents. The taxes amount of Rs1.2 billion was included when the contract was signed.

The committee took serious notice of it and unanimously decided to write a letter to Federal Minister for Energy (Power Division) in this regard. The committee also recommended NTDC to take action against officials involved in it and recover the amount from the company qualified for LoT-IV.

The committee also sought names of officials involved in signing of contract for LoT-IV. He recommended NTDC to provide the information related to number of firms participated along with a copy of letter of acceptance to the committee.

The committee reviewed delays in projects under the Irrigation Department and the Transport and Mass Transit Department of the provincial government of Sindh. The committee recommended both departments to provide the briefing material as per the agenda item of the meeting.

Abro recommended that Economic Affairs secretary to write a letter to chief secretary, Government of Sindh to enhance efficiency and accountability in project execution and ensure the presence of concerned persons in the next committee meeting.

Copyright Business Recorder, 2024