The Public Accounts Committee of the Parliament has directed the Ministry of Water and Power to present inquiry report on Nandipur power plant by October 10. The committee meeting held here under the chairmanship of Syed Khursheed Ahmad Shah was informed by Naseem Khokhar, Secretary Ministry of Water and Power, that Rs 246.90 billion are outstanding against various public and private sector entities of Power Distribution Companies (Discos).
Khokhar said that Quetta Electric Supply Company has to receive Rs 86 billion from various clients in Quetta region, while Sukkur Electric Supply Company has to receive Rs 60 billion from power consumers and Lahore Electric Supply Company has to receive Rs 40 billion from electricity consumers. The PAC discussed and review audit paras of different attached departments of the Ministry of Water and Power. Audit officials told the committee that speedy recovery of outstanding dues of various Discos is must to address the circular debt problems otherwise it will escalate to manifold.
The Ministry of Water and Power officials said that multibillion rupees cases have been pending in various courts since long, while Rs 10.20 billion cases are undertaken by the National Accountability Bureau (NAB). It was informed that billions of rupees are outstanding against the government of Azad Kashmir on account of power bills.
Chairman Water and Power Development Authority (Wapda) Lieutenant-General (retired) Muzammil Hussain informed the PAC that Neelum-Jhelum Hydro Power Plant would start operation by February 1, and by April next year it would be able to generate 969 megawatt electricity. He said that the plant would earn US $ 360 million per annum. The project was originally conceived in 2005 with an estimated cost of Rs 84 billion. However, the cost was gradually increased to Rs 500 billion. Hussain said that after devastating earthquake in October 2005, the project was redesigned and subsequently the cost increased manifolds.
He informed the committee that necessary infrastructure including installation of 425 towers and stringing for distribution of electricity has been completed and the filling of tunnels would start by October and the water would release for electricity generation by January 2018.
In order to clear 6 years backlog, PAC Chairman Syed Khursheed Ahmed Shah divided the audit reports to 4 sub-committees. He assigned audit reports of 2012-2013 to Shahida Akhtar Ali, 2013-2014 to Sardar Ashiq Hussain Gopang, 2014-2015 to Syed Naveed Qamar and 2015-2016 to Shafqat Mehmood''s committees. Shah then issued direction to the audit officials to produce the recent audit reports before the PAC as scrutiny of such an outdated audit paras is nothing but to digging out the graves.
As per NAB briefing to the committee, the cost of the project increased by billions of rupees because of a two-year delay in the project''s commencement. The bureau said that the Law Ministry did not give a post facto legal opinion on the agreement related to financing for the power project, and the file was stuck with the ministry from April 7, 2009, to August 24, 2011. Subsequently, the cost of the project escalated.
As per audit report, Nandipur power project was scheduled to be completed on April 16, 2011 with a cost of Rs 22.334.7 billion. The audit estimated that escalation of cost of the project caused loss of Rs 35.04 billion, blockage of Rs 7.32 billion revenue and additional demurrage charges caused over Rs 1 billion and total estimated loss to national kitty crossed Rs 43.37 billion.
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