MD charge-sheeted for not making Rs58 bn Nandipur project fully operational

ISLAMABAD: The Ministry of Water and Power in a bid to preempt the NAB probe has issued a charge sheet to the managing director of 425-525MW Nandipur project for not making it operational on time despite the fact that the project was completed with a huge amount of Rs58.416 billion. An additional Rs28 billion were spent on the project.
The ministry has also sought an explanation from the managing director for not penalising the Chinese company, which has failed to make the project fully operational.
The ministry took this action on the report of the enquiry committee headed by Zargham Ishaq Khan, Joint Secretary (Power).
The ministry spokesman confirmed the development but expressed his inability to divulge the content of the show-cause notice.
According a top official of the ministry, the CoD (date of commissioning) of the project was achieved some 10 to 15 days back but soon after technical faults have resurfaced.
NAB is already probing the massive increase in the cost of the project and is currently examining the causes of the inordinate delay in its functioning.
The PML-N government had taken credit for completing the project in the shortest possible time and Prime Minister Nawaz Sharif inaugurated the plant (one turbine) in May on diesel when even the HSFO treatment plant was not completed. The plant was shut down three days later.
The plant was run on HSFO on simple cycle basis until the June 20, 2014 when it was shut down due to technical failures in the gas turbines and fuel treatment plant.
The plant is being operated by the Chinese on a temporary three-month contract of which one month has elapsed.
The scope of the project and the project cost have been increased without the approval of the ECC or ECNEC to include the dedicated gas pipeline for gas that does not exist.
The managing director of the project decided to have a private O&M contractor (apparently Tenaga of Malaysia of Liberty fame) at an exorbitant rate i.e roughly twice the rate allowed to IPPs.
However, this process has been marred by non transparent operations as per the BoD of GENCO 3 who referred the matter to the CCC of Wapda which refused to give its verdict and the matter was pending with MWP.