ISLAMABAD - The Senate Committee on Power gave a clean chit in the inquiries related to alleged irregularities in three projects including two World Bank funded Dasu Transmission Line projects lot-I, II and tender for procurement of Bunting Conductor financed by Asian Development Bank. Inquiries in the alleged irregularities against all the three projects have been disposed off in a meeting of the Senate Standing Committee on Power that met with Senator Azam Nazeer Tarar in the chair.
It is worth mentioning here that the most vocal voice of Senator Saifullah Abro, who had dig out the alleged irregularities in the World Bank and ADB projects as a chairman of the Senate committee, was silenced last year when he was ousted as chair of the committee in an unprecedented no-confidence move. The session commenced with the chairperson inquiring about the report regarding the two matters regarding awarding of contracts to (M/s Sinohydro Corporation) for LoT-I of Dasu Transmission Line Project (DTLP), (M/s Harbin Electric International) for LoT-II and consultant (M/s GOPA Intec) for construction of 765kV double circuit transmission line from Dasu Hydro Power Station to Islamabad I/C Grid Station and ADB project ACSR Bunting Conductor LoT-II as discussed and referred to Power Division in the last meeting. The managing director, NESPAK provided briefing on World Bank funded Dasu Transmission Line project (DTLP)(Lot-I by M/s Sinohydro Corporation Limited), DTLP (Lot-II by M/s Harbin Electric International), DTLP (Consultant Hiring by M/s GOPA Intec), and alleged irregularities in the procurement of ACSR Bunting Conductor (M/s Newage Cables Lahore) funded by ADB. It was alleged that both responsive companies did not have any experience of Bunting Conductor.
However, owing to domestic preference the 2nd lowest bidder (M/s Newage) became first lowest bidder instead of M/s Henan Tong-Da China which was first lowest bidder. Additionally, MD discussed the pre-qualification matter with Lot-I of DTLP by M/s Sinohydro Corporation Limited thoroughly. Minister for Energy (Power Division) Mohammad Ali added that the World Bank, being the donor agency, has the right to set the framework for changes, emphasizing that there was complete transparency and no malicious action from their end. He also clarified the allegations faced by M/s Harbin Electric International, stating that the accusations were false. On the power sector circular debt, Secretary Power Division claimed of freezing the circular debt at Rs 2310 billion as of December 2023.
He assured the committee of the efforts being made for progress. In detail, the Secretary, Power Division briefed the status of circular debt, explaining that all circular debts had met their set target of Rs. 2,310 trillion as of December 21, 2023, including those successfully negotiated with the IMF, ensuring consistency in 2024 as well. It was informed that Rs85.7 billion have been recovered due to an anti-theft drive that started in the second week of August 2023. The ministry expressed confidence that addressing circular debt would lead to progress rather than regression. The secretary of the Power Division emphasized that they have imposed restrictions on staff posting to control electricity theft, despite objections from the Election Commission.
The committee members also discussed Public Petition No. PP-5485 regarding the restoration of electricity in Mirani Dam Feeder Dasht, District Kech. The Power Division explained that the system had deteriorated due to floods and emphasized the necessity of local support, as 80% of the inefficiency is attributed to a lack of financial resources and law enforcement support. The chairman Committee assured the ministry of his support and recommended writing letter to the provincial government of Balochistan to facilitate the supply of electricity in the area. The Committee members also considered Public Petition No. PP-5652 & 5653 against the management of K-Electric IBC for the illegal disconnection of PMT in Jahanabad near Gulshan-e-Maymar, Karachi. The K-Electric official explained that after analysis, it was discovered that the fault was at the PMT end, and the issue had already been resolved. Additionally, the Managing Director of NESPAK also provided a detailed presentation on the consultancy and progress of all NESPAK projects.