Power Division probes NTDC over development schemes removal, project delays

The Power Division has initiated an inquiry against the National Transmission and Despatch Company (NTDC) over removing several development schemes from the Public Sector Development Programme (PSDP). 

Business Recorder reported that the removed schemes include the World Bank-funded Electricity Distribution Efficiency Improvement Project (EDEIP).

The deletion of key development schemes has disrupted project operations, including consultant salaries and finalisation of new contracts since the fiscal year began.

Special Secretary Power Division Arshad Majeed Mohmand, appointed as the inquiry officer, issued a warning to NTDC Managing Director Waseem Younas. 

On November 13, the inquiry demanded records related to the financial year 2024-25 within a week. However, despite multiple reminders, NTDC failed to comply until December 20, when the Special Secretary confirmed receiving the necessary documents. 

Sources in the Economic Affairs Division (EAD) highlighted that delays in hiring Project Implementation & Management Support Consultants (PIMSCs) for critical procurements in power distribution companies (Discos) have also drawn scrutiny. 

A meeting chaired by Minister for Economic Affairs Ahad Khan Cheema identified inadequate progress on reforms and frequent staff turnover at Discos as key issues hampering project implementation.

The World Bank’s Implementation Support Mission previously flagged concerns over EDEIP, revealing only 3.6% of funds had been disbursed after three years, significantly delaying progress. 

The Power Division was instructed to expedite the onboarding of consultants and resolve bottlenecks in project implementation.

The government has sought $50 million in additional financing from the World Bank to implement an Asset Performance Management System at PESCO and HESCO. 

The Bank also urged Discos to address weaknesses identified during its mission in August-September 2024. The Power Division has been advised to delegate greater decision-making authority to Discos’ CEOs to ensure the timely execution of reforms and projects.