Senate body wants WB-funded project ‘irregularities’ investigated

ISLAMABAD: The Senate’s Standing Committee on Power convened on Tuesday to address concerns related to the award of contracts for the construction of a World Bank-funded 765KV double circuit transmission line from the Dasu hydropower station to Islamabad.

The committee chaired by Senator Azam Nazir Tarar appointed a three-member probe committee, led by the caretaker federal energy minister, to investigate the matter.

Additional members of the committee include the Managing Director of NESPAK and Secretary Power Division. The probe committee is mandated to submit its findings within three weeks, following months of discussions in committee meetings over alleged irregularities in contract awards.

During the meeting, the committee proposed that the Ministry of Energy (Power Division) establish an internal inquiry committee, headed by the secretary Power Division, to address the issues related to pending projects. Specifically, attention was drawn to the construction of 765KV double circuit transmission line from Dasu Hydro Power Station to Islamabad and ADB project ACSR Bunting Conductor LoT-II A.

Notably, previous meetings of the committee held in the last few months revealed violations for mala fide intent in the construction of the transmission line, including award of contracts to disqualified firms for LoT-1 (M/s Synohydro Corporation) and LoT-II (M/s Harbin Electric International) and a consultant (M/s GOPA Intec).

The committee urged the secretary Power Division to review previous reports and the tendering process for both projects, recommending a comprehensive report within three weeks.

Secretary Power Division acknowledged the negative impact of elevated power tariffs on businesses and export industry, discussing efforts to formulate a strategic plan to address these challenges.

The secretary revealed that various schemes are under consideration, and efforts are underway to formulate a model aimed at overcoming the obstacles posed by the current tariff structure. He said in Pakistan the power tariff for the industrial sector was the highest at 14 cents per unit against the region’s rate of 8 cents. He also noted that the gas tariff for the industrial sector in Pakistan was also the highest in the region.

The committee also addressed a petitioner’s complaint regarding the restoration of electricity in Mirani Dam Feeder, Dasht, District Kech. The petitioner stated that for the past four years, more than 50 percent of consumers have been affected by the lack of electricity. In addition to this, there is no check and balance regarding meters and electricity bills.

The CEO of Quetta Electric Supply Company (Qesco) cited electricity theft and conductor theft, coupled with a lack of cooperation from the administration, as contributing factors. The committee chairman suggested resolving the issue on humanitarian grounds, and the secretary assured consideration of the matter as a special case.

The chairman of the committee also recommended that the CEO of Qesco should provide a detailed report on why the issue had not been resolved for the last four years, who was responsible for malpractice and measures taken by Qesco to restore electricity in the area.

In addition, the committee discussed 236 federal government power sector development schemes awarded to the Multan Electric Power Company (Mepco). The CEO of Mepco will provide a detailed report on the execution funds, completion status and plans for the schemes in the next meeting, which is set to include the secretary of finance for a re-evaluation of funds.

The meeting was attended by several senators, including Senator Bahramand Khan Tangi, Senator Zeeshan Khanzada, Senator Sana Jamali, Senator Fida Muhammad, Senator Saifullah Sarwar Khan Nyazee, secretary of the Ministry of Energy (Power Division) and senior officials from the Ministry of Energy (Power Division).