Wapda gears up efforts to finish unfinished jobs

LAHORE: Muzammil Hussain, chairman of the Water and Power Development Authority (Wapda) talked about hydroelectricity and water storage during an interview. 

Q: Why have so many Wapda projects been delayed?

A: Most of such protects were launched in haste without going through proper procedures that also resulted in cost overrun. After assuming charge (August 2016), I found that Wapda was paying penalties to contractors of Dasu project. Its construction contract was awarded two years back without acquiring the required land. The contractors claimed mobilisation charges as they were sitting idle at the site. Within three months I got the survey of the area done and immediately acquired 500 acres of land. Now, the contractors face penalties as they are still to bring in the needed equipment at the site. I also cancelled the contract of a foreign contractor that subcontracted his entire contract to another party against rules. This is the first (foreign) contract scrapped by Wapda in the last 39 years. We also sent messages to other contractors to mend their ways. We have arranged Rs144 billion funding from domestic banks and Dasu is scheduled to produce 2,200 megawatts (MW) of electricity in 2021 and another 2,200 MW in 2024.

I am making it sure that no contract is awarded without financial closure and a timeline be strictly followed. This has happened in case of Neelam Jehlum project that was launched 14 years ago. The project was scheduled to complete in four years at a cost of Rs84 billion but no financial closure was made and no timeline for each stage was decided. The project’s cost has escalated to over Rs500 billion. When I came, the first thing I arranged was the availability of finances and then the timeline for each step of this project. As progress on each stage is being monitored and subject to fine on contractors for delays, it is on target. The first power generator would start in February 2018 and the next two in March and April same year.

Q: What are your top priorities?

A: Completing the long-delayed water and power projects is my top priority. In my opinion, the water storage situation is more serious than the power crisis. In the absence of new dams, we are throwing on an average 32-40 million acre feet (MAF) of water annually into the sea. Experts say one MAF water generates economic activity worth $500 million. We are throwing $16-20 billion into the sea. The nation agreed on building Bhasha Diamer dam but we were hoodwinked by the Asian Development Bank that for years has been negotiating terms of funding for this dam and then all of a sudden backed out, claiming that the dam is allegedly being built on a disputed territory.

I have convinced the government to build the water reservoir of the dam from our own resources. The Wapda would spend Rs100 billion a year for seven years to build the reservoir. The money would be raised through loans from banks and some yearly grant from the federal government. It would then be easier to obtain funding for power house after completion of water reservoir.

Q: When will 1,410MW Tarbela 4th extension project be completed?

A: There was no coordinated schedule of work completion. There was a lack of coordination among the employer, consultants and contractors. Manufacturing of main inlet valve – a critical equipment to complete intake structure – was pending for the last two years. The issues were taken head-on and Wapda timeline shows that first 460MW units would be operational in December 2017 and remaining two of 460MW each during high water-flow season in 2018.

Q: What about Kachhi canal project that is crucial for Balochistan?

A: This again is a case of cost overrun. The amount needed for its completion is Rs55 billion. I have arranged through federal government Rs10 billion to partially complete the canal project up to Dera Bugti. It will be operational in December this year and would irrigate 72,000 acres of farmland in Dera Bugti. We will need another Rs45 billion to complete the canal network that will irrigate another 100,000 acres. The work would be initiated when funds are made available.