Power Division anticipates a recovery of around Rs 150bn within 3-4 months

ISLAMABAD: Power Division has so far recovered appropriately Rs.10 billion during its campaign against electricity theft and recovery from power defaulters, while it anticipates a recovery of around Rs. 150 billion within 3 -4 months.

These facts and figures were presented by the power division (Energy Ministry) during a meeting of the Senate Standing Committee on Power which met on Tuesday under the Chairmanship of Senator Saifullah Abro here at Old Pips Hall, Parliament Lodges.

The Senate Standing Committee on Power was also apprised by the power division that the electricity theft campaign has proven to be very fruitful and the power division was able to recover appropriately Rs.10 billion during the campaign. It was apprised that the campaign continues in different districts and areas of the country on different models. The Senate Committee recognized the efforts of the power division and recommended to give appreciation certificates to the officers who led the campaign.

The Committee chair recommended that the recovery should be utilized as relief for the people of Pakistan. The power division anticipated that a recovery of around Rs. 150 billion is expected within 3 -4 months.

At the outset of the meeting, Senator Saifullah Abro expressed reservations on the absence of Chairman NEPRA and all its provincial Members from the Committee meeting. He said that NEPRA seems to avoid the meetings of Senate Power Committee because they do not have the courage to answer the questions raised by the Members on this forum.

The Committee chaired immediately sought details on the incumbency report of Additional Secretary (AS) Power Division from January 2021 – December 2021 to determine as to why the Chairman NEPRA is absent from the Committee meeting today and also with regard to agenda item pertaining to illegal extension of KAPCO Power Plant.

The Chairman Committee inquired on the amount of energy payment made to KAPCO Power Plant whose agreement was already expired in June 2021, the officials replied that Rs. 151 Bn was paid as Energy payment to KAPCO Power Plant out of which 95 pc were fuel charges.

The committee members inquired on the reasons of illegal extension and said that whatever work between KAPCO Power Plant and Power Division took place after the expiry of the agreement may deem to be illegal. The committee chair said that not even the extension was illegal but the Power division does not even hold the authority to give extensions to IPPs. Regarding the payments made to IPPs, the officials informed that under policy 2002 onwards the payments are been paid by NEPRA. The chairman committee inquired that if so is the case then on which basis, NEPRA has issued a show cause notice and sought explanation on the extension from CPPA-G. The committee deferred the matter for further deliberation and inquired on the details of breakup of Rs. 151 billion as energy payment paid to KAPCO Power Plant.

The committee also sought the fine charged to CPPA-G on the same. The CPPA-G officials also briefed the committee about the Members of BoD, Kot Addu Power Company Limited members including its Chairman Lt. General (Retd) Sajjad Ghani. The committee sought full details about the BOD, Members before the next Committee meeting.

The committee while deliberating on agenda item regarding the 765 kV double circuit transmission line from Dasu Hydro Power Station tabled the letter issued by World Bank to Power Division. The letter said that the World Bank confirmed that the contract was procured following the World Bank Procurement Regulations as stipulated in the legal agreement signed between the World Bank and government of Pakistan for the US $700 million IBRD loan. However, the letter said that recommendations regarding the mis-procurement and re-tendering of Lot-1 is incorrect, the letter pointed out. The committee apprehended that the ministry (Energy Ministry) seems to mis-communicate the objective behind obtaining the process details strictly in line with the WB guidelines and said that no such details are provided which claims that no deviation has occurred which potentially lead to mis procurement.

The committee chaired inquired from the Power Division to specify the in accuracies in the Senate recommendations by the World Bank. Power Division said that the NTDC is the procurement agency and a committee has already been constituted by NTDC to further deliberate upon the findings of senate recommendations. The committee chair after thorough deliberation observed that the basis on which the World Bank issued the NOC and termed the project legal is only on the stage wise information and process details provided by the NTDC.

The committee chair recommended holding a meeting with the NTDC Board and closing the matter regarding the mis-procurement of Lot -1 & LoT-II and if the Senate Committee findings found incorrect be bound to admit and give redressal. The committee sought report of the procurement committee within a fortnight for further deliberation.

The committee also received briefing by MD, NESPAK on their consultancy and progress of all projects in Power Sector and on ADP project ACSR bunting conductor Lot -II A.  The chairman committee inquired on the technical experience required by the M/s Newage Cables Lahore and M/s Henan Tong-Da China. The committee observed that the experience of bunting conductor is missing on the ACSR bunting conductor LoT II A project in both qualified companies. It was apprised that M/s Newage Cables Lahore emerged as the lowest evaluated substantial responsive on the basis of domestic preference. The Committee sought entire correspondence made between NTDC and NESPAK on the project to determine the basis of M/s Newage Cables Lahore as the lowest bidder.

The meeting was attended by Senator Bahramand Khan Tangi, Senator Muhammad Asad Ali Khan Junejo Senator Saifullah Sarwar Khan Nyazee, Senator Sana Jamali, Senator Dilawar Khan, Senator Haji Hidayatullah khan and Senator Fida Muhammad.

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