Cabinet Division has constituted a four-member committee to find out " wrongdoings" in interchangeability of Fatima Energy Limited (FEL) from co-generation policy to IPPs' policy, well-informed sources told Business Recorder. The committee which has been constituted on the directions of Cabinet Committee on Energy (CCoE) is being headed by Secretary, Cabinet Division and comprising Secretary, Power Division, Managing Director, Private Power infrastructure Board (PPIB) and Joint Secretary (EA). The PM's Office will probe the accusations against the company.
The sources said former Minister for Water and Power, Khawaja Asif, former Secretary Water and Power Younus Dagha and incumbent Managing Director PPIB Shah Jahan Mirza are responsible for giving special favour to M/s Fatima . MD PPIB is expected to be taken to task as he is also in good books of Minister for Power Sardar Awais Ahmad Khan Leghari.
The terms of reference of the committee are as follows: (i) an analysis of existing co-generation and IPP policies, with a view to ascertaining any lawful possibility of interchangeability of status from one policy to another ; (ii) responsibility (if any) for changing the status of FEL from capacity power plant to IPP by PPIB, both in PPIB and the Ministry; (iii) the tariff impact of change in status from Captive Power Plant to IPP, keeping in view higher tariffs for Captive Plants allowed by NEPRA due to padded capital expenditures; (iv) policy implication of change of FEL status from Captive Plant to IPP due to demand of similar dispensation by other Captive Power Plants with higher tariffs; (v) overall role of PPIB, Power Division (erstwhile M/o Water and Power) and any other entity in FEL conversion case, if done in violation of policy; and, (vi) proceedings before various judicial forums and connivance of any of the public sector entities/ individuals in providing any undue favours.
However, M/s FEL has challenged the federal government saying that a meeting was held between the Prime Minister and the Fatima Energy Limited (FEL) team in presence of the Secretary, Power Division to discuss issues related to delay in COD of the Fatima 120MW power project and to seek guidance on earliest dispatch of power to the National Grid since the FEL power plants is ready and equipped to dispatch power to the same.
During the meeting, FEL was informed that CCOE is holding a fact-finding inquiry in relation to the implementation of Fatima Energy Limited under Cogen Policy 2008. The Prime Minister observed that FEL should also take part in the inquiry to assure accuracy of the report. According to FEL, its stance was that its participation in the committee proceedings is critical to reaching a realistic and fair conclusion.
An earlier inquiry report was presented to CCoE on September 6, 2017 meeting at the direction of the former Prime Minister Nawaz Sharif which was also initiated to probe matters relating to the FEL project headed by Dr Amir. The report unequivocally exonerated FEL and Ministry of Energy for any wrongdoing or malpractice.
FEL has requested that it should be given an opportunity for a hearing to present facts of the project to the members of the committee along with assertions and objective documentary evidence for the committee's consideration.