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ISLAMABAD: A high-level panel has recommended that performance audit of Indus River System Authority (Irsa) should be conducted through reputed management consultancy firm as the water regulator sabotaged telemetry system due to lack of expertise in the fields of hydraulic, electronics, software engineering, procurement and M&E capacities, well-informed sources told Business Recorder.

The Federal Cabinet on June 20, 2020, had constituted a panel comprising Deputy Chairman Jehanzeb Khan, Secretary Industries, Afzal Latif and Secretary Aviation Division, Hasan Nasir Jamy to initiate an inquiry into sabotage of the telemetry system.

The panel, in its report stated that Irsa has not been able to put in place a system for monitoring the process for river flows and that the PC-1 prepared by IRSA for installation of telemetry system was deficient with regard to defining various hydraulic conditions experienced at barrages.

Given the gigantic nature of Indus system of rivers and its associated hydraulic structures as well as the level of sophistication associated with state-of-the-art Telemetry Systems, the Committee observed that selection of local consultant (M/S Nespak) and the contractor (M/s Siemens Pakistan) in 2002 was not appropriate. Such a big initiative should have been implemented through International and well reputed consultants and contractors (with track record of success in such projects) under the mode of International Competitive Bidding. Local firms, as appropriate, could be associated for better coordination with the local institutions.

The panel has recommended that emphasis should be placed on engaging a reputable international firm to conduct a feasibility study for projects of such technical nature. The procurement process for hiring of consultants should preferably be on Quality Based Selection mode. Ranking contractor, with demonstrated track record of such solutions should be engaged, preferable in Engineering Procurement and Construction (EPC) mode for execution of the project. The consultant should assess the suitability of employing the EPC mode and make clear recommendations.

The panel’s report further stated that Irsa's organizational structure is deficient in many ways. It lacks expertise in the fields of hydraulics, electronics, software engineering, and has inadequate procurement and M&E capacities. Its management structure needs to be realigned to ensure efficient performance of the obligatory functions. IRSA Act 1992 thus requires full review, both from organizational and functional perspectives. Performance audit of Irsa needs to be conducted by a ranking management consultancy firm, which should also identify the need for future organizational and technological resources.

The panel further stated that the criteria for appointment of Members of Irsa need a review. The current practice has, at times, led to very long stints which results in complacency and inertia. The maximum age for Members also needs lo be revisited. The Federal Government and the Provinces should review the credentials, competence, and suitability of their current nominees for Irsa, and if found necessary, make appropriate replacements.

The water sector is a critical sector for the future of the country. Key water organizations, NOWR, Irsa, Federal Flood Commission, Office of Pakistan Commissioner for Indus Waters, PCR WR, are all direly in need of technical and professional capacities. Water Sector Capacity Building and Advisory Services Project (WCAP) was designed to address this gap, but unfortunately, it could not fulfill its objectives. There is an urgent need to enhance the capabilities of all these organizations and they must be enabled to discharge their legal duties, safeguard Pakistan's interest in international disputes and forums, as well as implement the National Water Policy and Water Accord.

The panel maintained that the fateful decision by Maj. Gen. Farooq Ahmad Khan Chairman, PMIC and subsequently flawed procurement approach by the current members of authority, Sher Zaman Khan (Chairman Irsa/Member Balochistan), Raqib Khan (Member Irsa, KP), Rao Irshad Ali Khan (Member Irsa, Punjab) and Mazhar Ali Shah (Member Irsa, Sindh) led to aborting the project again. The two episodes have virtually sabotaged the initiative. However, the Committee could not find any evidence that this was done through any systematic scheme. It was rather based on incompetence, lack of knowledge and shyness from technology. Irsa is quite comfortable with its usual business modes.

The panel has recommended that for moving ahead, the suitability of current Members of Irsa be reassessed by the Provinces/Federal government. It must be ensured that they have the leadership and competence to not only install the Telemetry System but steer Irsa through much-needed reforms and restructuring.

Copyright Business Recorder, 2020

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