Two NTDC projects: Ali-led body to find a way out of ‘questionable’ contracts

ISLAMABAD: The Senate Standing Committee on Power has constituted a three-member committee headed by caretaker Minister for Power and Petroleum, Secretary Power and Managing Director NEPAK to find a way out of questionable contracts of two National Transmission and Despatch Company (NTDC) projects - one funded by the Asian Development Bank(ADB) and other financed by the World Bank.

Presided over by Senator Azam Nazir Tarar, the committee directed the three-member committee to look into the contracts of both projects in light of minutes of Senate Committee on Power, the Power Division’s own aggrieved view point and the winning bidders’ reservations and submit it to the Senate Standing Committee.

The Committee will bring the facts to the fore and review the procedures of the projects. “The committee will probe if there was any misappropriation or procedural lapses which goes beyond the procedure and is mala fide as well,” said an official. The committee will discuss the matter with the World Bank and the ADB.

‘Corruption’ in contract award: Power Division-Senate panel dispute deepens

The decision was taken by the Committee after going through the documents and viewpoints of Power Division and its attached Organizations like NTDC and NESPAK on the tender of ACSR Bunting Conductors for a transmission line from Sangal to 500 kV Maira switching station.

The Board of Directors (BoD) of NTDC in its meeting held on December 27, 2023 had already approved re-evaluation of contract of ACSR bunting conductors. The Senate Standing Committee, headed by Senator Azam Nazir Tarar, in its previous meeting gave 20 days to the Minister for Power and Petroleum, Muhammad Ali, for a comprehensive briefing on two suspicious contracts which the committee is investigating for the last few months.

Secretary Power and MD NTDC also briefed the Committee on the recommendations of Standing Committee in awarding the contracts to M/s Sinohydro Corporation for Lot-1 and M/s Harbin Electric International for Lot-II and Consultant M/s GOPA Intec for construction of 765 kV double circuit transmission line from Dasu hydropower station to Islamabad I/C grid station.

Turkish Ambassador to Pakistan and representatives of Turkish Company M/s SA-RA briefed the caretaker Minister about the tactics used by the NTDC to extend favour to Chinese companies and German Consultant M/s GOPA.

Chairman Standing Committee maintained that it is important to complete the projects with the cooperation of international organizations. He said He advised the Secretary, Power Division to review previous reports and the tendering process in awarding of contracts in both projects and recommended submitting a comprehensive report within three weeks.

Managing Director NTDC informed the Committee that power transmission from Dasu project will commence from May 2024.

Senator Bahramand Tangi proposed that there should be an internal inquiry in Power Division regarding the contract.

Standing Committee argued that the caretaker Minister for Power and Petroleum is a technocrat and neutral, and he should probe facts adding that all aspects of transparency on the issue of contracts should be taken into consideration.

Additional Secretary Power Incharge, Asad ur Rehman Gilani informed the Committee that the working on bringing the industrial tariff to cents 9/kWh has been completed, adding that revision of tariff is necessary to run industry. “If the wheel of industry moves, then people will get employment and issue of circular debt between various institutions will also be resolved,” he added.

The Standing Committee sought details on the circular debt in the power sector and summoned Secretary Finance on energy sector circular debt briefing in the next meeting. Secretary Finance will also brief the Committee about funds for the development projects.

According to a press release The committee members also discussed in detail the petitioner’s complaint regarding the restoration of electricity in Mirani Dam Feeder, Dasht, District Kech. The petitioner expressed that for the past four years, more than 50 percent of consumers have been affected by the lack of electricity. In addition to this, there is no check and balance regarding meters and electricity bills. The CEO, QESCO, in his defense, explained that there has been frequent electricity theft and conductor theft, coupled with a lack of cooperation from the administration, which contributes to the issue. He also added that they had to bear 95% losses in this regard.

The Chairman of the committee, Senator Azam Nazeer Tarar, suggested to the secretary, Power Division that the issue be resolved on humanitarian grounds, as it is the moral responsibility of the authority to address the necessities of consumers. The secretary assured the committee members that he would consider the matter as a special case. The chairman of the committee also recommended that the CEO of Quetta Electric Supply Company (QESCO) provide a detailed report on why the issue has not been resolved for the last four years, who was responsible for malpractice, and measures taken by QESCO to restore the electricity in the area.

Furthermore, regarding the 236 Federal Government Power Sector Development schemes awarded to Multan Electric Power Company (MEPCO), it was briefed that the execution funds received amounted to Rs. 299.983 million.

Under the Sustainable Development Goals Achievement Program (SAP), out of the 235 schemes, 39 are 100% completed, while 43 are partially completed. It was reported that these projects will be completed before February 8, 2024, and the CEO of Multan Electric Power Company (MEPCO) will provide a detailed report in the next meeting.

The meeting was attended by Senator Bahramand Khan Tangi, Senator Zeeshan Khanzada, Senator Sana Jamali, Senator Fida Muhammad, Senator Saifullah Sarwar Khan Nyazee, the Secretary of the Ministry of Energy (Power Division), and senior officials from the Ministry of Energy (Power Division).

Copyright Business Recorder, 2024