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Saturday April 27, 2024

Blaming others for own follies

By our correspondents
December 02, 2015
Much has been talked about the 525 megawatt Nandipur Thermal Power Plant. Almost every second person in the country has been and is making the incumbent government target the irrational delay in the completion of the project. Ironically, even those who were in power when construction of this power plant was contracted to a Chinese company — Dong Fang Electric Corporation — in January 2008, vent spleen at the sitting regime for their own misadventure that caused delay in the plant completion and subsequent increase in cost from its original Rs23 billion to Rs58.4 billion. Though we, as a nation, claim to have grown up, the culture of leg pulling, blame game and political point scoring on non-issues is yet there with all its monsters.
The positive angle of this whole episode is that the Nandipur power plant is now operational with full capacity of 425 megawatts and has so far produced electricity worth Rs5.6 billion. As per initial planning, the plant would be converted to gas with a target of 525MW that would lead to reduction in the per unit generation cost. But the questions, why we allow the culture of opposition for the sake of opposition to get roots in our political system and why don’t we welcome good gestures of others meant for national building, still remain unanswered. In recent months, the PTI and PPP have launched an accusatory campaign over the Nandipur power plant. The PTI continued raising hell by claiming that the actual cost of the plant was Rs22 billion and it shot up to Rs84 billion; the loadshedding could not be controlled even in 2020; the government is pressuring Wapda to start the plant prematurely. Even the PPP, whose government’s had mishandled the project, was on the front foot accusing the current regime of commissioning expensive projects and taking kickbacks, and claimed that Nandipur is the most expensive project in the world.
Though these allegations were very critical, however, PM Sharif was quick to take notice of these charges and directed the auditor general to probe on three points: a) reason behind the increasing cost of the project, b) amount that has been spent so far and c) whether the board, administration of the project and the contractor fulfilled their responsibilities.
The government is filing its answers of the objections raised in the fresh audit report after presenting it to the prime minister. However, this report at the first stage has clarified that delay by the PPP government, and massive fluctuation in exchange and interest rates were the main factors that led to escalation in the plant cost. It also rejected the claims of spending Rs84 billion on the project with the assertion that wrong statistics were presented regarding the cost of the project, and its shutting down.
Even Nepra and now the inquiry commission, the inquiry commission formed to probe the project misappropriations, have rejected all objections that the project’s cost had escalated to Rs84 billion, it would not generate 425MW electricity, fuel treatment plant was under capacity, and the plant would be closed in near future. The Pepco had signed the plant contract with the Chinese company in 2008 during the PPP’s previous government in the Centre. It was scheduled to be completed by April 2011. However, it is an open secret that why didn’t the PPP government clear the $85 million worth machinery that was imported to complete the Nandipur project for two years (March 2010 to March 2012) and let the machinery rust at the Karachi port. That was a huge loss for the cash-starved government of a country which is constantly experiencing acute energy shortfall for the last several years. The painful tale does not end here as the Chinese company, being unable to sustain with the discouraging situation, terminated the contract demanding $40 million saying it had suffered colossal losses due to the non-clearance of the machinery at the Karachi port.
Though completion of the Nandipur power plant with an inflated cost was a gigantic task for the PML-N government, which inherited multiple crises from the PPP regime, yet it soon after coming to power in June 2013 took remedial measures; convinced the Chinese company to resume construction work on the plant; the Ecnec gave approval to the project with an inflated cost of Rs58.4 billion.
According to current status, Rs51 billion have been spent on the project out of the total projected PC-1 cost of Rs58.416 billion and around Rs7 billion were yet to be utilised. Due to litigation, the project could not be completed by 2011, and the present PML-N government started work on the same PC-1 in 2013 and spent only Rs67 million on its re-mobilisation. Even the NAB’s first probe into the Nandipur probe last month covered its stages from approval to inauguration.
On the other hand, the PML-N leadership’s claims in 2013 election rallies to end power crisis in six months or so were something that drew ire of public criticism at the later stage. Things cannot be corrected overnight, but it was also a fact that the N-League after coming into power did not adopt the policy of shelving projects of the previous PPP government and focused on critical areas particularly power sector. As a matter of fact, the government is currently continuing more than 26 power projects including construction of dams initiated by the previous PPP government which include Neelum-Jhelum Hydro Power Project (969MW) (with assistance from China, Kuwait, Saudi Arabia, IDB and Opec), Tarbela Fourth Extension Hydro Power Project (1410MW) (Swabi) (World Bank, IDA), Dasu Hydro Power Project Northern Areas (4320MW) (Kohistan).
The fresh audit report on the plant on one hand has put the current regime on safe side while on the other it exposed the intentions of political opposition forces who are still believe point scoring on non-issues would deliver at last. In fact this is no public service; they appear to be oblivious of the masses’ miseries; they need to be mindful of whether they have done for the public when there were in power corridors. Will opposition forces ever appreciate government’s positive initiatives and review their way of politics is still a million dollars question.