FRIDAY FEBRUARY 27: Two power projects: government pours cold water on revival efforts

ISLAMABAD: Federal government on Thursday poured cold water on the revival efforts of two Independent Power Producers in relation to a 120. MW Japan Power Generation Company (JPGC) and a 110 MW Southern Electric Power Company Limited (Sepcol), arguing that both power companies are bankrupt.
When this issue came under discussion in Senate's Standing Committee on Water and Power headed by Senator Zahid Khan of ANP and Senator Mohsin Leghari said the two power companies owe Rs 2.50 billion to the federal government and are weak on eligibility and performance counts. Azam Khan, General Manager, National Transmission and Despatch Company (NTDC), informed the committee that the two companies that sold electricity at Rs 8 per unit did not fulfil conditions of Power Purchase Agreement (PPA). He further stated that both companies are also bankrupt.
Minister of State for Water and Power Abid Sher Ali informed the committee that according to secondary agreements signed in 2010, it is mandatory for the companies to ensure furnace oil stocks for six days for which government extends resources in advance. According to the agreement, both power plants were to generate one unit of electricity by consuming 209 gram of furnace oil but their consumption was higher. These companies also failed to fix steam turbines.
Sher Ali stated that Nepra monitors all matters of power generation plants, adding that Economic Co-ordination Committee (ECC) of the Cabinet and Nepra did not approve the agreement. The committee was also informed that all power distribution companies (Discos) have been directed to start recruitment on vacant positions. For this purpose, Discos will advertise in newspapers by March 15, 2015. According to the Ministry of Water and Power, 27,927 positions are vacant in Discos. The Standing Committee was further informed that no one was recruited for Wapda hospitals on a permanent basis though a son of a deceased employee was recruited.
Wapda recruited 149 on a contract basis while four on daily wages and a list of vacant positions below BPS 16 is being prepared. The committee was informed that recruitment for BPS 16 and above will be filled through Federal Public Service Commission (FPSC). Senator Zahid Khan observed that candidates for 30,000 vacant positions will deposit Rs 1200 and Rs 1600 to the National Testing Services (NTS). The committee was informed that Discos are independent and NTS tests are being taken to ensure transparency in recruitment. Senator Nisar Mohmand stressed early recruitment in Wapda hospitals. He further claimed that some Discos have started recruiting whereas others are facing a ban. Double standards in recruitment must be avoided, he argued.
Senator Moula Buksh Chandio stated he met CEO Hesco who claimed that a ban has been imposed on recruitments on Islamabad's instructions. Minister of State for Water and Power Abid Sher Ali said that not a single Disco has been given any such direction and instead Discos have been directed to start recruiting. He said Hesco CEO will be asked to clarify his position.
Managing Director Pepco Omar Rasool informed the committee that recruitment on technical position from BPS 5 to 18 will be filled through NTS. Commenting on delay in completion of Darwat Dam in Sindh, Senator Moula Buksh Chandio and Senator Nisar Mohmand expressed annoyance and directed the Ministry of Water and Power to formulate a universal policy for the entire country. However, Chairman Wapda apprised the committee that only 4 percent work is pending due to delay in the release of funds. Senator Hari Ram sought assurance from the Ministry of Water and Power for allocation of five per cent quota for ministers in recruitments.
Senator Zahid Khan and Senator Nisar Mohmand expressed concern on the closure of Wapda's transformer repair workshop in Chakdara. Abid Sher Ali apprised the committee members that transformer manufacturing company M/s PEL was selling one transformer at Rs 0.6 million and has got a stay order from High Court. Now, government will manufacture transformers at half of the price, he claimed.
Senator Nisar Mohmand raised questions on the tariff of Malakand Power House and power generation. Director Pydo replied that present generation of power house is 54 MW against total generation capacity of 81 MW because of lower release of water by the KPK Irrigation Department. Senator Nisar Mohmand argued that due to replacement of machinery the national exchequer is facing a financial loss. He further stated that a guarantee for the machinery should have been taken at the time of procurement. Replying to a question of Nisar Mohmand regarding construction of 350 small dams in KPK, the committee was informed that 35 MW hydropower projects will be constructed with the help of NGOs, adding that feasibility of 111 projects has already been completed.