WAPDA chairman fails to take action against delay in Tarbela Extension Project

Water and Power Development Authority (WAPDA) chairman has still not taken any action against those responsible for delays in 1410 MW Tarbela (4th) Extension Project, while over $25b incentive payments made to the contractor for early completion of the project are still not recovered.

Earlier, Prime Minister Nawaz Sharif directed WAPDA chairman to determine and fix responsibility for the delays in the Tarbela extension project. Similarly, the PM directed the chairman to take measures for recovery of the payment made to the contractor for acceleration of works on the Tarbela extension project completion by June 2017 (US$25.5 million).

“However, the chairman WAPDA has so far not taken action against WAPDA officials responsible for delays in the project while incentive money paid to the contractor is still not recovered from the contractor, “sources told this correspondent on Friday.

The sources said incumbent WAPDA chairman Lt Gen Muzammil Hussain (r) is reluctant to take an action against influential WAPDA officials responsible for delays and heavy incentive payments made to the contractor of Tarbela-4 project.

The sources said the authority made the approval of incentive payments when Zafar Mahmood was the chairman of WAPDA, while incumbent three members of the authority including Badar-ul-Munir Murtaza, member (Power); Engr Muhammad Shoaib Iqbal, member (Water), and Anwar-ul-Haq, member (Finance) were also part of the then authority that made approval of these payments.

The authority comprises of a chairman and three members working through a secretary.

It is to note here that WAPDA chairman was tried to get his stand, but, all efforts remained in vain as he did not respond till the filing of this story. Also, a Public Relation Officer (PRO) of the authority when contacted to know the implementation status over the direction issued by the premier, he expressed his limitations.

Tarbela 4th Extension Hydropower Project is being developed to enhance the generation capacity of Tarbela Hydel Power Station to 4,888MW after installation of another three units of 1,410MW on tunnel no 4, main dam. Only the construction of powerhouse, penstock, and extension of the switchyard and installation of electrical and mechanical equipment are to be undertaken for the project.

The premier had desired to accomplish the project about eight months before the actual deadline of March 2018. Upon this, the completion schedule of the project was squeezed to July 2017, and the contractor demanded an additional amount of $51m for completing the project in time. Also, $25.5m totally paid to the contractor till February 2016. However, the project cannot meet the deadline.

“The already delayed Tarbela Extension Project (T4HP) might take another year to generate 1,410 MW of electricity,” the sources said, adding, “the project is likely to be completed by February 2018.”

It is also learnt that the first generation unit (470MW) is expected to be completed in August 2017 while completion of the remaining two (each 470MW) in the same month or the same year is not possible. Also, the remaining two units will come online in February and March 2018. However, the release of funds will accelerate in 2017 when major shipments for electro-mechanical contracts are expected to arrive on the site.

Reportedly the delay in harvesting the already delayed Tarbela 4th Extension Hydropower Project is to some extend majorly attributed on account of the change in results framework, change in legal covenants, change in loan closing date, change to components and cost, change in institutional arrangements, change in financial management and change in implementation schedule, besides unnecessary time taken in awarding contracts.

The World Bank has extended the completion date of the project till 2019. The delay in completion of this crucial project might discredit the ruling Pakistan Muslim League-Nawaz (PML-N) of its efforts on the energy front.

 

Ahmad Ahmadani
Ahmad Ahmadani
The author is a an investigative journalist at Profit. He can be reached at [email protected].

Must Read

Hascol’s restructuring has excited the market. But does it address the...

The recent rally in stock price hints at successful restructuring but the fundamental problem still persists