Development projects: Nespak's inefficiency caused delay: National Assembly panel

A parliamentary committee Thursday observed that the main reason behind the delay in the development projects is inefficiency of The National Engineering Services Pakistan (NESPAK). The committee further observed that as a result of inefficiency of Water and Power Development Authority (Wapda) and NESPAK officials, the national exchequer lost Rs 4 billion. The parliamentarians made these remarks in the meeting of Standing Committee on Planning, Development and Reform which met under the chairmanship of MNA Abdul Majeed Khan Khanan Khail.
The committee noted that NESPAK's officials are inefficient and this factor is causing delay in the projects. The committee discussed the issues related to Mangla Dam Raising Project (MRDP), the acquisition of Land (on lease etc), cancellation of contract and cost increase of the project. The committee raised questions about the cancellation of M/s KKP which caused billions of rupees extra loss to the nation.
KKP representatives blamed that their contract was cancelled, unilaterally, on 24 hour notice. The representative of the KKP construction company informed the committee that, after the termination of their contract, the work of 120 million was handed over to a new company at Rs 1500 million. The contractor blamed NESPAK, who is doing consultancy of the project, for not completing the design work of the project on time adding that the design work was not ready even after two years of the termination of their contract.
Briefing the meeting Joint Secretary Ministry Water and Power, Syed Mehar Ali Shah said that this is routine matter of Wapda that they are awarding the contract first and taking the approval of the minister later. We have called an explanation from Wapda on the issue of not taking prior approval from the Ministry, he added.
The committee also take notice of the appointment of Agriculture Engineer, Manzoor Ali, as a Project Manager Mangla Raising project and said that how can you hand over a project worth Rs 102 billion to an Agriculture Engineer. Chairman of the committee directed that ask Higher Education Commission to provide the syllabus for the Agriculture Engineer.
Chief Water Planning Commissioner said that project management has become a discipline and in Pakistan proper educated people in that discipline are available so therefore appointing an agriculture engineer as a project manager is questionable. He requested the committee to make it compulsory that only the people with project management credential should be appointed as Project Managers, he added.
Chairman of the committee said that it seems the problem is with the consultant and not the contractor and they have caused delay to the projects. NESPAK is taking money in advance from the government but is not working efficiently. The official of NESPAK said that they haven't received any money for the said project. To NESPAK claim, chairman committee responded that this is good that they did not pay because you don't deserve to be paid. "In my opinion all the money should be shifted to the government of Pakistan account from the NESPAK account," he added. The committee was informed that Wapda has lost the case twice in arbitration and spend million rupees on arbitrators who were the ex-employees of the Wapda.
Chaudhry Jafar Iqbal said that "We need to fix the responsibility as besides increasing the cost of the project, million of rupees were paid in litigations". Wapda official said that 24 notices were issued to the KPP as they were moving very slow. The company was supposed to complete its projects till 2008 but it had completed only 25 percent on the project till the time. Finally in 2009 Wapda has cancelled its contract, Wapda official added.
The committee observed that a loss of 4 billion was incurred to the National Exchequer. Interestingly when Joint Secretary Water and Power, Syed Mehar Ali Shah, was enquired about the Ecnec approval for the new cost of the project, he said yes Ecnec has approved the project but later divulged that they have just submitted the summary and it was not approved. Apparently the contract was awarded by Wapda without the prior approval of Ministries of Water and Power, Planning and Ecnec.
The committee directed that all related documents for the revised PC-I for Mangla Raising Project may be provided along with approval of Ecnec. The committee directed that Wapda must provide all documents regarding the cancellation of seven contracts of Mangla Raising Project. The committee asked that Secretary Wapda, Chairman Wapda and MD NESPAK must ensure their presence in the next meeting; otherwise committee will take strict action against them. It was informed to the Committee that there is seepage issue of Mangla Dam but it is not dangerous.