Neelum-Jhelum transmission line: Senate body expresses reservations at award of contract

Senate's Standing Committee on Water and Power on Thursday expressed serious reservations over awarding contract of Neelum-Jhelum transmission lines (by the previous government) and sought details of annual expenditures of nine Power Distribution Companies (DISCOs) with break up.
The Committee directed the National Transmission and Dispatch Company (NTDC) to stop forthwith implementing the project, as Public Procurement Regulatory Authority (Pepra) rules had not been followed while awarding the Rs 23 billion contract to a single bidder.
The Committee decided to further deliberate on the contract awarding process before deciding its fate.
The Committee observed that the tender of the award had been awarded in January 2012 while the formal approval was sought from the Executive Committee of the National Economic Council (ECNEC) on August 27, 2012.
Chairman of the Committee Zahid Khan refused to accept the arguments of Managing Director NTDC, Planning Commission and decided to further discus the issue in next meeting.
The Committee directed Nepra to provide detailed basket price of hydel power generation from June to September 2013 in the next meeting scheduled to be held on November 8. The benefits of increase in hydel generation must be passed on to the consumers, it added.
The Committee directed Secretary Ministry of Water and Power Saifullah Chatta to suspend the official of National Electric Power Regulatory Authority (Nepra) and report to the Committee.
The official had refused to answer the questions of the Committee allegedly saying that the documents of Nepra are sacred and cannot be handed over to anyone.
Chairman Nepra Naeem Khawaja told the Committee that the government was paying substantial subsidy to the consumers of nine DISCOs. However, the overall subsidy to the consumers has decreased as compared to last year, he added.
The DISCOs have also been directed to decrease their line losses by one percent annually. Currently, the line losses of nine percent are ranging from 9.5 percent to 28 percent.
Secretary Ministry of Water and Power Saifullah Chatta said the government had already decided in 2010 to privatise Muzaffargarh and Lakhra Power Plants. The previous government had also decided to privatise Peshawar Electric Power Company (Pesco), Faisalabad Electric Power Company (Fesco) or Hyderabad Power Supply Company (Hesco).
Chairman of the Committee Zahid inquired whether there is approval of the Council of Common Interest (CCI) and sought the minutes of the meeting of the CCI, so that the former Chief Minister of Khyber Pakhtunkhwa Amir Hayder Khan Hoti could be questioned as it negates the policy of ANP.