Islamabad, April 05, 2023 (PPI-OT):The Senate Committee taken up the matter of construction of 765KV, double transmission line from Dasu Hydro Power Station to Islamabad. The Project was financed by World Bank with a cost of 700 million USD. In the previous meeting, the committee recommended to put the agreement at hold and provide details of Hiring Consultant GOPA. However, World Bank has maintained that the Senate Standing Committee is not authorised to halt the process.
Senator Saifullah Abro claimed that World Bank is financing the project but it doesn’t allow the world bank to dictate the terms and award the project to his blue-eyed consultant. Rana Abdul Jabbar Khan, MD NTDC, apprised that project was advertised on 30th December,2016 and 20 firms have submitted the applications and out of which six firms were shortlisted.
Senator Saifullah Abro remarked that the evidence submitted by NTDC clearly shows that irregularities have been committed, while awarding contract to GOPA and directed the NTDC to submit all the necessary documents in the next meeting.
Moreover, the committee examined the bidding process of K-Electric. Officials of Privatisation Commission apprised the committee that the process was initiated in 2002 and four private entities submitted Expression of Interest (EOI), but only two entities qualified for bidding process which includes Kanooz Al Watan and Hasan Associates with offering bid of Rs. 1.65 per share (Rs. 15.86 billion) and Rs. 1.01 per share (Rs.9.71 billion) respectively.
However, Kanooz Al Watan did not make the balance payment and K-Electric was awarded to Hasan Associates at Rs. 1.65 per share amounting to Rs. 15.86 billion, they added. Moreover, officials informed that Financial Adviser was appointed by Asian Development Bank to evaluate the value of K-Electric and complete its privatisation process.
Senator Saifullah Abro opined that while evaluating the price of K-Electric, what factors were taken into consideration by Financial Adviser. He also directed the Privatisation Commission to provide appointment details of Financial Adviser.
The Committee also took stern action of recent increase in electricity cost. Officials of Power Division informed that as of march 2023, per unit price stands at 30.55 rupees. Officials said that capacity payments to different IPPs is major reason behind the increase in per unit cost.
Senator Saifullah Abro remarked that government should freeze capacity payments to IPPs by keeping in view the current inflation in the country. He also directed the power division to provide details of capacity payments made so far to IPPs in the next meeting.
The meeting was attended by Senator Fida Muhammad, Senator Zeeshan Khanzada, Senator Sana Jamali, Senator Haji Hidayatullah Khan, Additional Secretary Power Division Arshad Majeed, MD NTDC Rana Abdul Jabbar Khan and other senior officers of relevant departments were also in attendance.
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