Circular debt: IPPs paid Rs 341.35 billion, National Assembly told

05 Nov, 2013

The government paid Rs 341.35 billion to Independent Power Producers (IPPs) under the head of circular debt during 2012-13 till date, the National Assembly was informed on Monday. In a written reply to a question, Ministry for Water and Power told the House that total increase in power generation capacity stood at 2,568 megawatt - 1,724 MW increase in thermal power and 844 MW in hydel power.
About Golan Gol hydropower project, the House was informed that the project consists of 4 lots and work on two lots (housing colony and power house) is under way with 27 percent progress. However, lot 3.2 that relates to tendering of electrical and mechanical works under the previous bidding process, the bids were opened in June, 2011, later on due to controversies raised by the competitive bidders and finally on the directives of National Accountability Bureau in March 2013 Water and Power Development Authority (Wapda) annulled the bidding process.
Re-tendering of lot 3.2 (E&M Works) is in process and delay in opening of bids is due to a petition filed by the lowest evaluated bidder of the previous tendering process. The authority is simultaneously working on carving out modalities to revive the previous tendering process to save time and any possible increase in the cost, the ministry maintained.
The House was informed that original PC-1 of the project was approved by Ecnec in June 2002 at a cost of Rs 7.2 billion. However, due to non-availability of donor funding, the implementation process got delayed. The project was tendered in stages starting from 2008 and after receiving bids, the actual cost was estimated at Rs 28 billion. Revised PC-1 is under submission to Planning Commission for approval by Ecnec. Reportedly there is no deliberate delay on any person's part.
To another question, the ministry stated in a written reply that the delegation of China Southern Grid Company (CSG) visited NTDC from September 23 to 24, 2013.Detailed presentations were given to the delegation about the network and system operations of NTDC together with development projects. During these discussions, the matter of training and capacity building of NTDC engineers was also taken up. The CSG agreed to provide assistance in this regard only in technical and engineering fields.
For this purpose, the CSG said their training facilities are now quite advanced and the CSG would be pleased to meet NTDC requirements. The CSG, however, intimated that it is not possible for them to provide training in the field of utility management and related fields because they too depend on their foreign partners, ie, Hardworld University and US utility companies for this purpose. Presently, the NTDC is in the process of assessment of training needs of engineers working in difference departments. After completion of this assessment, a formal request will be made to the CSG by December 2013.
Meanwhile, Information Technology and Telecommunication Ministry in a written reply in the National Assembly, said around 100 countries are exporting Information Technology (IT) services from Pakistan including 40 percent by the United States, adding that major IT services exporting countries included UAE, UK, Netherlands, China, Bahrain, Singapore, Canada, Germany, Norway, Saudi Arabia, Japan, Thailand, Malaysia, Switzerland, Australia, Denmark, Sweden, Ireland and South Korea. The House was also informed that 17 private enterprises in Pakistan have achieved the target of annual IT exports services exceeding one million US dollars.

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