ISLAMABAD: Minister for Planning, Development and Special Initiatives Ahsan Iqbal has directed Water and Power Development Authority (Wapda) to rationalise the cost of 800-MW Mohmand Dam Hydropower Project (HPP).
These directions were issued during a meeting of Central Development Working Party (CDWP) held under the chairmanship of Minister for Planning Development & Special Initiatives/ Deputy Chairman Planning Commission.
Official documents reveal that Chief Energy (Power), M/o PD&SI apprised the forum that objective of the project is to construct 220-kV double circuit transmission lines for dispersal of power from under construction 800-MW Mohmand HPP. The 1st unit of Mohmand HPP will start producing power in August 2026 and the power plant will be fully operational by December 2026.
He informed that scope of the project comprised of construction of total 135-km, two 220-kV Double Circuit (D/C) transmission lines, i.e., 70-km from Mohmand HPP to Nowshera and 65-km to proposed Jamrud substation and two line bays to be installed at 220-kV Nowshera Industrial and Jamrud substations. He pointed out that per km cost of the proposed transmission lines of the project are on higher side as compared to similar nature projects being executed in the past by NTDC.
The project was discussed in a pre-CDWP meeting held on May I5, 2023 under the chairmanship of Sr. Chief (Energy), wherein it was decided that the project will be submitted for consideration of CDWP with the recommendations that Power Division/ NTDC will confirm financing of the project by ADB through Economic Affairs Division (EAD) and will rationalize cost of the project, particularly purchase of four vehicles (Rs. 39.6 million), in line with Finance Division guidelines regarding execution of development projects through loans.
Joint Secretary, Power Division stated that ADB financing of the project is confirmed through EAD and the project is based on the information furnished by Wapda regarding the status of Mohmand Dam HPP. Accordingly, NTDC has prepared the proposed evacuation plan. Additional Secretary, EAD confirmed the source of financing from ADB for the project.
Project Director, Monitoring and Evaluation, M/o PD&SI pointed out that provisions of funds made under the heads of Right of Way (RoW), Engineering & Consultancy, Administration and supervision and contingencies need cost rationalization.
The representative of PEC enquired about the timelines for completion of the project and emphasized that it may be synchronized with the actual completion of Mohmand Dam HPP.
In response to the queries, GM Power System Planning (PSP), NTDC apprised that the cost for RoW has been allocated on the basis of similar transmission line projects constructed in that area. However, expenditure will be made as per the actual cost incurred during implementation of the project. Regarding cost rationalization, he apprised that contingencies and consultancy cost are already taken at a bare minimum of 2% of the total cost.
He also informed that the project will be commissioned 6 months ahead of HPP, i.e., in Feb, 2026 in order to allow back-feeding of power for testing and commissioning activities of the HPP.
Regarding PMU, he assured that a dedicated Project Director will be hired for the project and ECNEC guidelines will be followed, in letter and spirit.
Minister for Planning, Development and Special Initiatives observed that the cost of the project needs rationalization. He directed that cost of contingencies may be reduced to 1% and costs of Engineering & Consultancy and Administration & Supervision may be also reduced to 50%. Further requirement of vehicles should be curtailed to 50%, i.e., l x Car and I x Double-Cabin only. He advised Power Division/ NTDC to obtain a certificate from Wapda regarding completion timelines of Mohmand HPP so that timeline for the transmission lines for evacuation of power is accordingly synchronized by NTDC. He also directed NTDC to appoint full time PD for the project for its timely completion and to have an independent Project Director.
Total cost of the project is Rs 13.822 billion, with a FEC of Rs 5.967 billion @US$-Rs 266.67.
Copyright Business Recorder, 2023
Comments
Comments are closed.