The Senate Standing Committee on Economic Affairs directed an inquiry into the nearly five-year delay in completing the first 660MW unit of the 1320MW Jamshoro Power Plant.Â
According to a news report, the directive came after officials from the Economic Affairs Division (EAD) shifted responsibility to the Power Division and Genco Holding Company Limited (GHCL).
Chairing the meeting, Senator Saif Ullah Abro was informed that construction of the first unit began in 2014 and was initially scheduled for completion in 2019. However, its Commercial Operation Date (COD) is now expected in the third week of December 2024, with project costs escalating to Rs1.74 billion ($680 million).
The Committee also instructed the Power Division to launch a separate inquiry into the Guddu 747 power plant, delayed since 2021, to recover liabilities exceeding Rs10 billion from M/s GE.
EAD Special Secretary Muhammad Humair Karim stated that while the division arranged project financing, delays stemmed from the Power Division’s inefficiencies. The Committee chair urged the EAD to lead the inquiry and submit findings to the Power Division.
GHCL’s CEO explained that despite the project being ready in August 2024, faulty water pumps and transmission line issues caused delays. The CEO added that financial penalties for these delays are being discussed with the contractor.
During the meeting, Senator Kamran Murtaza criticized the project’s prolonged timeline, noting that two and a half years were spent awarding the contract after the loan agreement was signed in 2014. He suggested future contracts include local arbitration clauses to avoid high foreign currency penalties.
The Committee was informed that Pakistan currently has 16 ongoing power sector projects financed by international organizations. Eight are supported by the Asian Development Bank, seven by the World Bank, and one by the Islamic Development Bank.
Discussing the Sindh Solar Energy Project, funded by the World Bank, officials outlined plans to convert government buildings to solar energy and distribute two million solar units among low-income families. Senators raised concerns over the beneficiary selection process and recommended prioritizing rural Sindh.
The Committee requested detailed beneficiary lists, including district-wise distribution, and recommended reviewing all ongoing and completed projects under multilateral and bilateral frameworks in the next meeting.
The session was attended by Senators Kamran Murtaza, Haji Hidayatullah Khan, and Falak Naz, along with senior officials from EAD, NESPAK, and other concerned departments.
