The lawmakers in Senate on Tuesday expressed concern over extension in lease contract of Saindak Copper Gold Project between Saindak Metals Limited and Metallurgical Corporation of China for another five years - November 01, 2017 to October 31, 2022. PkMAP Senator Usman Khan Kakar from Balochistan and PTI's Muhammad Azam Swati wanted to know why the contract was not awarded through open tendering.
Kakar also alleged that the Chinese had shown production of gold and copper and income thereof is much lesser than the actual. He asked if there was not any mechanism to ascertain the related facts. Deputy Chairman Senate Maulana Abdul Ghafoor Haideri, who was chairing the question hour, deferred the question, which was originally asked in writing by Dr Jehanzeb Jamaldini of BNP-Mengal.
However, in the written answer, Minister for Energy Jam Kamal Khan shared the information regarding extension of the contract. Federal Minister for Energy Awais Ahmed Leghari, who was present in the House, said that a total of Rs 303, 193 million were payable to the IPPs. He explained the IPPs' demand based on payables-circular debt as on October 12, 2017 was Rs 198,326 million under IPPs 1994 Policy, while Rs 90,445 million under IPPs 2002 Policy and Rs 14,422 million under IPPs Policy (Nuclear), 1994.
The minister said the International Centre for Settlement of Investment Disputes has not imposed any fine on the government of Pakistan. However, the centre has rendered its award on case filed against Pakistan by the Karkey Karadeniz on August 22, 2017. The government has not to pay any monthly profit to the plant. Legal recourse mechanism was being deliberated upon in consultation with all stakeholders as per the Center's rules and regulations.
JI Senator Sirajul Haq had asked if it was a fact that ICSID had imposed a fine of $700 million in the arbitration case of Turkish rental power plant, Karkay, and the government of Pakistan had also to pay $5.6 million as monthly profit to the plant. To another question by Senator Jehanzeb Jamaldini, Minister for Energy Jam Kamal Khan said that the government is committed to the execution of the Iran-Pakistan gas Pipeline Project.
Due to international sanctions on Iran, Pakistan issued force majeure notice to Iran in March 2014. In view thereof, Pakistan proposed to amend the Gas Sales and Purchase Agreement (GSPA) enabling the parties to complete their respective sections of the pipelines within the extended period. The project, he noted, came under discussion during the visit of the President of Iran to Pakistan in March 2016. Both sides agreed to resolve all outstanding issues. The approval of the competent authority has been sought to negotiate amendment in GSPA with Iran.
He maintained that Pakistan would take forward with Iran the mutual cooperation in energy sector in the time to come. Awais Leghari said that NEPRA law was being amended, envisaging a maximum of three-year jail term for those involved in electricity over-billing. He said the NA committee concerned had already approved the draft legislation with consensus. He said the move would discourage the distribution companies' trend of fleecing consumers for their own mis-governance.
He said they were initiating the process of hearing complaints by NEPRA down to the sub-division level from the current month and the regulatory body has been asked to open related offices for hearing accordingly. The minister clarified that the massive power outages in parts of Punjab and Sindh was due to smog phenomenon, which affected the transmission lines. He said it was not power load-shedding, as reported by the media.
Joint opposition staged a token walkout from the Senate against absence of ministers from the house to respond to some agenda items. "Shouldn't the House be shut? Said Rabbani when he was informed neither federal nor state ministers for national health services was available with regards to a motion by PPP Senator Sherry Rehman.
Leader of opposition Senator Aitzaz Ahsan rose to say this was a disgraceful situation that the ministers are not available in the House. He added the frustration expressed by the chair was quite understandable and then he led the opposition's walkout from the Senate. Responding to a calling attention notice by PkMAP Senator Usman Kakar, Federal Minister for Energy Awais Leghari said that 10,000 tube wells in Balochistan would be converted to solar energy this year under a transparent model to save precious money. He pointed out over 30,000 tube wells were eating up massive subsidy every year in Balochistan.
He also said that the work on Chashma-Dera Ismail Khan transmission line would be completed by March next year and the work on Dera Ismail Khan-Zhob would take two-three years for completion. He added details had been finalized for signing of an agreement with Asian Development Bank for funds for the second transmission line. Earlier, Senator Kakar said that the under-construction Chashma-Zhob power transmission line has been facing delay for the last two-three years while his province continued to face acute power shortage, as the existing transmission line could not handle 1000MW power load.
He lamented over 50 per cent agriculture in Balochistan stood devastated due to non-availability of water and power, as farmers relied on 33000 tube wells for irrigation. He added Balochistan's electricity demand was 1650MW while it is being supplied only 450MW. In its report, the Senate Standing Committee on Finance and Revenue has called on Nepra, Ogra, PTA and PEMRA to pay their obligatory three per cent regulatory duty to the Competition Commission of Pakistan. The report was tabled in the House by Senator Mohsin Leghari on behalf of Senator Saleem Mandviwalla who heads the committee.