Pakistan considers suing Neelum-Jhelum consultants over Rs500bn project faults

Legal action under review as project remains non-operational since May 2022

The government is contemplating legal action against consultants of the Neelum-Jhelum Hydropower Project (NJHP) due to repeated faults in the Rs500 billion project, depriving the country of a cheaper and eco-friendly power source. 

The project’s consultants include a joint venture comprising MWH USA (lead firm), NORPLAN (Norway), and NESPAK, ACE, and NDC of Pakistan, while the contractors are two Chinese firms—CGGC and CMEC.

According to a report published by Dawn, the final decision on the matter will be taken by Prime Minister Shehbaz Sharif in consultation with stakeholders, as an investigation committee considers extending its probe to include contractors involved in the project.

The NJHP has been non-operational since May 2022 due to cracks in its head race tunnel. 

Minister for Planning and Development Ahsan Iqbal chaired a meeting of the committee tasked with presenting recommendations for the rehabilitation and operationalization of the 969MW power project. 

Legal issues were discussed with the Secretary for Law and Justice and the Attorney General of Pakistan (AGP) to lay the groundwork for possible action against those responsible for the tunnel collapse.

An official statement emphasized the need for internal accountability for poor project management by the Water and Power Development Authority (Wapda). The meeting was attended by the AGP, secretaries of law and water resources, and former federal secretary Shahid Khan, who leads the investigation committee.

Sources revealed that the investigation report identified sufficient grounds for pursuing legal action against the consultants. However, legal advisors recommended a cautious approach by involving reputable international experts to authenticate the findings, particularly since the lead consulting firm is based in the United States.

The committee also recommended expanding the investigation to include the contractors, as repeated faults in the project have raised questions about their role. Minister Ahsan Iqbal directed that both consultants and contractors be given the opportunity to defend their positions.

The planning minister expressed dissatisfaction over delays in the submission of the final report, which he said had hindered timely accountability. “From the outset, an accountability mechanism should have been in place to monitor progress and assign responsibilities, especially for a project of this scale,” he stated.

The meeting concluded with directives to expedite investigations and engage international consultants for an independent review. The findings and recommendations will be presented to the prime minister to determine the next course of action.

 

Monitoring Desk
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