Scrutinising the CPEC

The main component of the $46 billion CPEC is the addition of 17,080MW electricity to the national grid. For this $35 billion has been set aside. This comes to $2.05 million for generating one megawatt power through projects being built under the CPEC. The 1,180MW Bhikki Power Project is being built in Sheikhupura under the Quaid-e-Azam Thermal Power programme (not included in the CPEC) of the Punjab government. The project cost is only $539 million based on competitive international tendering. The construction cost for generating one megawatt is thus $0.457 million as against $2.05 million of the CPEC.

Now take the case of two power projects of 1,320MW capacity each, included in the CPEC, that are under construction at Sahiwal and the Port Qasim at the cost of $1,800 million and $2,080 million, respectively. The cost of these projects is not based on any competitive bidding. Consequently, over-invoicing of 198 percent and 245 percent, respectively, was allowed for these projects when compared with the Bhikki Power project. This means that the total cost to add 17,080MWs power to the national grid under the CPEC, if scrutinised in the financial terms of the Bhikki project, should be $7.806 billion instead of $35 billion. Should this be overlooked as an omission, an oversight or a blunder – or a scam?

Imtiaz Husain Qureshi

Karachi