The government has assured the Asian Development Bank (ADB) that all measures will be taken for reforming the National Transmission and Despatch Company (NTDC) which is responsible for the execution of mega transmission projects in the country.
An informed source said that an ADB team while reviewing the progress on different on-going bank-funded power projects in the country, along with the Ministry of Water and Power officials expressed deep concerns over the performance of NTDC and DISCOs in improving the energy system.
The ADB team blamed the NTDC and DISCOs for slow utilisation of the approved funds of the bank. They expressed concern over the delay in the Jamshoro Power Generation Project. They said the NTDC and DISCOs were causing delays in the execution of bank funded projects, the source added.
An official statement issued after the meeting said, the Secretary Water and Power, Mohammad Younus Dagha, briefed the ADB officials about the overall measures been taken by the ministry, to increase the effective role of NTDC and DISCOs in on-going projects.
The ministry is much concerned about increasing the capacity of NTDC and DISCOs on management, procurement and financial sides, for which the ministry had been working spear-headedly for the last six months.
ADB team shared that 81 per cent contracts have been awarded under distribution to various DISCOs, and with this momentum, ADB portfolio in Distribution sector is $ 567 million out of which 59 per cent has already been disbursed, a much higher disbursement ratio as compared to development works before 2014.
In transmission sector, ADB is financing multiple projects amounting $ 344 million, of which 91 per cent contracts have been awarded and 54 per cent amounts have been disbursed. ADB team showed satisfaction on the pace of work and the improved capacity. The distribution and transmission line projects are very important for meeting the target set by the government to address power shortages by 2018.
The ministry further informed ADB that they would leave no stone unturned to reform NTDC on operational lines including planning, designing and implementation areas. On the other hand, the ministry is also looking for professionals, both from Pakistan and abroad, to engage them in executing this task, on market-based fair compensation packages, for obtaining optimum results.
On the consumer side, the ministry is working day and night to facilitate the customers, trace and correct wrong billing or over-billing, and mobile-metering to ensure more transparent and fair distribution of electricity.
While discussing the progress on Jamshoro Power Generation Project, (JPGP), it has been mutually agreed to complete the process of awarding of contracts as soon as possible. Issues pertaining to acquisition of land and coal suppliers are expected to finalise by next month.
The secretary informed the ADB delegation that the performance of the distribution companies has been improved a lot over the last two years. This is evident by the additional cash flows worth Rs 116 billion, due to better distribution and lower line losses.
The ADB delegation appreciated the improvement in the power sector and also, showed satisfaction over the pace of the projects and distribution companies. The ADB delegation showed their interest to enhance the level of cooperation beyond the existing level.
