While expressing serious concerns over cost overrun of various power generation projects, Senate Standing Committee on Water and Power has sought a detailed briefing from the government on cost escalation of Nandipur power plant. A meeting of the committee chaired by Senator Taj Haider decided to take a briefing from Ministry of Water and Power on cost escalation of Nandipur power project, Sahiwal Power Plant and Neelum-Jhelum Hydro Power Project in the first phase.
The committee also constituted a four-member sub-committee headed by Nauman Wazir to take a briefing on the reasons behind cost escalation of these projects and submit a report to the main committee. Nauman Wazir said the ultimate sufferers of cost escalation of the project are the consumers because over-expenditures are recovered through tariff. He added that 425MW Nandipur power project was approved with Rs 23 billion cost initially which was subsequently revised upward to Rs 42 billion and further to Rs 65 billion. The government, he said, sought tariff increase from the regulator, which was refused.
Wazir and other members of the committee suggested that the government must follow some countries'' standard with respect to equipment from Chinese to avert Malakand-II and Nandipur power projects like fiasco. Wazir said that substandard equipment is the major cause behind frequent breakdowns of Malakand-II.
The committee also expressed concerns over low voltage of electricity in various areas and directed the ministry to resolve the issues because it is causing loss to consumers on account of damage to electric appliances. A complaint regarding low voltage was also filed in the Senate Secretariat which was subsequently referred to the committee by the chairman Senate to take up with the officials of relevant distribution company.
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