The government has denied a request made by Water and Power Development Authority (Wapda) seeking an extension of time for the contractor working on the Tarbela 4th extension project. Wapda has been reported to have paid millions of dollars to the contractor as an incentive to expedite work on the said project.
The deadline for project completion was set for February 2018, which was later moved to June 2017 as per the government’s plan to narrow the gap between demand and supply of electricity. In this regard, Wapda paid $25m as incentive payments for expediting work on the project.
Later, the contractor informed Wapda that it would not be able to finish work by June 2017, therefore the deadline was extended to December 2017.
Sinohydro Group of China is the prime contractor for civil works while a consortium of Voith Hydro of Germany and China has the contract for electrical and mechanical work packages.
Recently, Wapda Chairman Muzzamil Hussain again approached the federal government, seeking extension in the time frame to the original deadline of February 2018.
The Wapda chief informed the Cabinet Committee on Energy, in a meeting held on April 18, about the progress on the Tarbela 4th extension project. He informed that first, second and third power units would be ready for operation by end December 2017, April 15, 2018, and May 10, 2018, respectively. He added that 84.10pc civil works and 91.36pc electrical and mechanical works had been completed by March 31, 2017.
Speaking about the implications of making the first unit operational in December 2017, he said that this required other units being shut down for 15 days in May 2017 and for nine days in September 2017 resulting in increased load-shedding in May and September.
He sought for an extension from the energy committee for the commercial operation of the first unit in February 2018 instead of December 2017 as electricity from the unit would only be available after June 2018.
Secretary to the prime minister termed the extension in the deadline unjustified, questioning why the implications had not been presented earlier. The energy committee concluded that since additional payments had already been made to the contractor under the acceleration plan, the time frame committed by Wapda would be adhered to.
Earlier, Prime Minister (PM) Nawaz Sharif had called for a detailed inquiry into the payment of $25m incentive money also asking for clarification for the delay in meeting the deadline of June 2017 despite making additional incentive payments.
Under the Tarbela 4th extension project, three units of 470 megawatts each with a cumulative capacity of 1,410MW are being installed on T-4 tunnel, which will enhance the capacity of Tarbela power station to 4,888MW compared to the current 3,487MW.
