Parliamentary panel questions Nandipur power plant’s cost overrun

ISLAMABAD: A parliamentary panel on Friday questioned the Nandipur power plant performance and hefty cost overrun of Rs36 billion in a span of 15 months and cautioned that it will never allow the government to collect this amount from the masses in the shape of increased electricity tariff. 

The panel noted that 425 megawatts Nandipur power plant was originally estimated at Rs22 billion, but in 15-month period it went up to Rs58 billion, but at the same time despite its completion, the plant is not only unable generate up to the optimum, but also producing costly electricity. 

The sub-committee of the Senate Standing Committee on Water and Power that met here with the Senator Numan Wazir Khattak in the chair also expressed serious concern over unjust collection of Rs62 billion from Karachiites in their electricity bills and asked the Water and Power Ministry to make arrangements for returning this amount to the power consumers. 

The ministry’s high official told the committee that K-electric that was the sole privatised power distribution company in this mega city was not providing relief in tariff to the consumers like other state-owned distribution companies.

However, Nepra’s senior representative assured the committee that it will look into the matter and will consider this in its tariff for KE in weeks to come. Regarding Rs36 billion cost overrun of Nandipur plant in a short period of 15 months, the committee cautioned the ministry that it will never allow the government to pass on this burden to consumers and collect it from them in the shape of increased electricity tariff.

“It is the government which is responsible for delay and increased cost and not the masses,” the committee said. It said masses should not be punished for the wrongdoings that they never committed.

The Water and Power Ministry official said delay was due to the Law and Justice Ministry’s not providing timely reply and opinion on the project in 2011.  Additional director Nandipur said the plant is functional since January 18, 2017 and running at full capacity. He further said the plant was kept shut since September, 2016 for the purpose of inspection and some maintenance.

The committee also expressed disappointment over power generation gap of power generation companies (Gencos) plants and directed the Water and Power Ministry to submit details of economic merit order of Gencos and independent power producers (IPPs).

Chairman of the committee asked the officials of the ministry that why there was a lot of difference in efficiency between public sector thermal power plants and IPPs. He also read the efficiency level of private IPPs i.e. Nishat Power Limited is running at 45pc efficiency, Orient 51pc, Saif Power 51pc, Foundation Power 48pc and Liberty Power 45 percent.

Convener of the committee said the issue of loadshedding could be resolved if these Genco plants work efficiently. He said the generation gap is over 43 percent this time but if these plants are properly maintained they can produce more power.

The committee expressed reservation over the absence of CEO Nandipur project in the meeting. It also decided to visit Nandipur project site soon after the next meeting.