Award of ‘dubious’ contract to German firm: Senate panel accuses World Bank official and power secretary of ‘conniving’ with NTDC

ISLAMABAD: The Senate Standing Committee on Power on Thursday accused Country Director World Bank, Najy Benhassine, Secretary Power, Rashid Mahmood Langrial of conniving with NTDC in the award of a dubious contract to the German firm M/s GOPA Intec.

The contract was for a 765 kV double circuit transmission line from Dasu Hydropower station to Islamabad I/C Station at an estimated cost of $ 800 million and other contracts.

Presided over by Senator Saifullah Abro, the Committee has directed Power Division and NTDC to provide final viewpoint of its Board next week which has already forwarded the reportedly mis-declared contract to its Procurement Committee to be headed by a Professor of National Institute of Management Sciences.

$700m Dasu transmission line: Senate panel smells a rat in NTDC’s contract process

Energy Minister, Muhammad Ali, Secretary Power Division, Rashid Mahmood Langrial, and NEPRA Authority comprising Chairman and Members did not appear before the visibly angered Committee members who decided to issue summons to the entire staff of NEPRA Authority to ensure presence of Authority in its next meeting. The Committee was informed that Power Division has also written a letter to Country Director World Bank, seeking the Bank’s viewpoint on Dasu transmission line project.

The letter says “the issue of award of contract of Lot-1 of Dasu Transmission Line project was under discussion in the Senate Standing Committee on Power for the last six months. After the detailed deliberations, the Committee in its meeting held on August 4,2023 has concluded that award of Lot-1 of DTLP is a mis-procurement conducted by NTDC and Consultant M/s GOPA Intec. The Committee has recommended re-tendering of Lot-1.”

According to the letter, Power Division understands that procurement process for World Bank funded projects is undertaken under the WB guidelines. Accordingly, World Bank is requested to clearly indicate that the process was strictly in line with WB guidelines and no such deviation has occurred which may potentially lead to mis-procurement.

The Standing Committee grilled Power Division for writing such a letter to the World Bank meant to seek “clearance letter” of a contract which was awarded in a suspicious way. Additional Secretary-III Power Division, Arshad Majeed Mohmand also supported the viewpoint of Standing Committee that all wrong doings are clear, suggesting that NTDC Board should give its decision in black and white within a week so that it can be presented before the Committee.

Chairman Standing Committee hurled accusation of “connivance” of Country Director of World Bank in the scandalous contract, who also wrote a letter to Chairman Senate to stop the inquiry by the Power Standing Committee.

“There was a nexus between Country Director World Bank, Secretary Power Rashid Langrial and NTDC in the award of the fishy contract,” said, Senator Abro who also blamed Power Division for destroying the entire power sector. Standing Committee directed Company Secretary NTDC to share the recording of Procurement Committee of NTDC Board to make it part of the proceedings.

Chairman Standing Committee warned that acting Managing Director NESPAK was part of wrongdoings of NTDC.

The Standing Committee rejected formulation of an inter-ministerial committee to probe alleged mis-procurement headed by General Manager of Power Planning and Monitoring Company (PPMC), saying that since the matter has been referred to NTDC Board, and therefore there is no need of any such Committee.

Chairman Standing Committee also hurled accusations at PTI government for extending PPA of KAPCO power plant for 14 months, threatening to summon all Cabinet members in the Committee who accorded approval of extension of first IPP which had completed its life. He directed CPPA-G to provide details of provision of gas to the project as it was given preference over public sector power plants.

He was of the view that IPPs are being given preference on public sector power plants under the garb of economic merit order.

According to an official statement, Senate Committee applauded the Power Division for taking swift action against the line losses and electricity theft in different DISCO’s. Additional Secretary, Power Division, Arshad Majid apprised that approximately around Rs 1 billion worth of recovery has been made in the last few days and the Power Division has also reshuffled the officers of various DISCO’s to ensure its efficiency.

The Chairman Committee Senator Saifullah Abro stated that the Power Division should also reshuffle CEO’s of DISCO’s and BoDs who allegedly acted with mala fide intent and diminished the capacity of power sector.

The Senate body expressed annoyance at the non-implementation of Committee recommendations relating to 765kV double circuit transmission line from Dasu Hydro Power Station to Islamabad.

The Additional Secretary, Power Division noted that the ministry has constituted a Committee to investigate the matter and the report will be submitted once it is completed. Senator Saifullah Abro reiterated that the committee has explicitly identified irregularities in bidding process for the ‘Construction of 765KV double Circuit Transmission line from Dasu Hydro Power Station to Islamabad’ but the irony is that, despite making recommendations several times to take action against the alleged officials, Power Division has not taken any action.

Copyright Business Recorder, 2023