Rs113bn ‘wasted’ due to delays in Nandipur power project

Published October 23, 2014
Prime Minister Nawaz Sharif takes a look around the Nandipur power project’s combined cycle plant after its inauguration ceremony. — APP file photo
Prime Minister Nawaz Sharif takes a look around the Nandipur power project’s combined cycle plant after its inauguration ceremony. — APP file photo

ISLAMABAD: Federal Minister for Water and Power Khawaja Mohammad Asif on Wednesday informed the National Assembly that the delay in the 425MW Nandipur power project had caused a staggering Rs113 billion loss to the government.

Replying to questions posed by Ms Shaista Pervaiz of the Pakistan Muslim League-Nawaz (PML-N) the minister said a judicial commission was constituted on October 26, 2011 to investigate the delay.

According to the written reply of the minister, the commission held executive authorities of the Ministry of Law, Justice and Parliamentary Affairs responsible for the delay in the completion of the project, which cost the national exchequer more than Rs113 billion.

According to the commission, the minister said in his response, the law ministry kept sitting on the file, seeking clearance for the import of machinery which was to be installed at the site.

The minister said the case was now pending with the National Accountability Bureau (NAB).

Also read: Mystery shrouds 425MW Nandipur plant

The PPP government’s failure to get the project completed within its tenure was excessively highlighted by the current ruling PML-N prior to general elections, and apparently reaped the benefits in the form of complete wiping out of the PPP from Punjab.

The project was started in January 2008 at a cost of Rs23 billion. The contract was given to a Chinese firm, which was supposed to complete the work by April 2011.

However, due to unexplained reasons, the then Dr Babar Awan-led law ministry refused to provide legal cover required to import its machinery.

In reaction, the Chinese firm canceled the contract. Despite repeated attempts, Dr Awan wasn’t available to comment what made his former ministry to play the role of a spoiler in this project as described by the judicial commission.

The PML-N soon after coming into power re-initiated talks with the Chinese firm and made it agree to complete its pending work, but the cost was increased to Rs57 billion. As bad luck would have it, the Nandipur power project hasn’t brought good news for the PML(N) government either.

More on this: Cost of Nandipur Power Project skyrockets to Rs84 billion

Prime Minister Nawaz Sharif inaugurated the project in May this year with much fanfare, as one of its turbines was ready to produce electricity. However, instead of furnace oil, diesel was reportedly used to run turbine which risked the whole plant.

As a result, government was left with no choice but to wait for the completion of the project and then use it for production of electricity.

A furnace oil treatment plant (FOTP) is being imported for the project.

Published in Dawn, October 23rd, 2014

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