Rs113bn ‘wasted’ due to delays in Nandipur power project
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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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Comments (57) Closed
Oct 23, 2014 10:32am
Ye, please blame it on Imran Khan.
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Oct 23, 2014 10:46am
Pathetic
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Oct 23, 2014 11:02am
No further waste of money required on so called "judicial commission"...Red-tape, incompetence and corruption are the real culprits...arrest these "culprits/irregularities" so no future projects of any kind are squandered or bungled...
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Oct 23, 2014 11:12am
We want to know what your government did to find the culprits of this loss? If nothing done ,then IK will shout as it is another sharing business.
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Oct 23, 2014 11:19am
This usually happens with nation who elects Tried-Tested-And-Failed corrupt thugs. I don't have any doubt we will elect their children in the next election. All of Imran's efforts will go in vain b/c we still have doubts about him. We want to be sure. And we certainly are sure about these thugs.
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Oct 23, 2014 11:28am
Is this for real....................there are rugs put down on the ground for these sensitive feet to walk on to inspect the plant...........
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Oct 23, 2014 11:31am
This is what happens when you have friends and family running projects instead of qualified persons appointed on merit.
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Oct 23, 2014 11:33am
I bet Mr Zaradai took his 10% and left and now PMLN wants its 10% cut before the project can be finished. I do not understand how these people sleep at night.
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Oct 23, 2014 11:45am
Nice to see still Pakistan has some city which has name linking past............ Nandipur means city where Lord Shiva favorite disciple Nandi lives........ It means city of Lord Shiva favorite's disciple............... God bless you all and give peace, love, wealth & prosperity............ Happy Diwali to my all Pakistani friends
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Oct 23, 2014 11:46am
that 110 arab !!! you have any idea how much money is that?
put awan behind bars and seize his property to make up for the loss..
when will you start acting like men?
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Oct 23, 2014 11:59am
For this huge loss Zardari and his ministers should be in jail. Ha Ha Ha. Sorry I am laughing at myself.
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Oct 23, 2014 12:09pm
The Plant has already faced millions of rupees worth of loss on equipment by mismanagement of activating the engines without due clearance from the per-running maintenance procedures. They have wrecked expensive equipment and since it was done against the regulated protocols the damage is also void of warranty. The political nature of the project has made it a fiasco.
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Oct 23, 2014 12:12pm
The responsibility lies on corrupt politicians and ineffective judiciary system.
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Oct 23, 2014 12:26pm
This happens when incapable people comes to power.
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Oct 23, 2014 12:33pm
Why have those who wasted this money NOT been held accountable ?.........is it because of the ' you scratch my back and I'll scratch your's '...policy of both PPP-Z and PML-N.
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Oct 23, 2014 01:03pm
Our courts will keep their silence as if nothing happened. NAB has been personalized too. After all this cost is nothing when you all are saving the democracy. I can see a time when only "Bhutto" and "Sharifs" will be alive in this country. No wonder why Musharaf said "Pakistan ka Allah Hafiz"
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Oct 23, 2014 01:09pm
Where are all the comments from PML(N)
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Oct 23, 2014 01:11pm
If you have to pay billions for such plants, why not go for European or North American contractors instead of Chinese Dong Feng?
Cost increased due to commissions and kickbacks, which is only possible with Chinese or Turkish companies these days!
First delays and then fake completion costed Pakistan! on top of that plant use fuel that requires oil import once again very cause of high energy prices in the country, when will these goons learn.
There also a plan, once its completed on Tax payers money, it will be given to blue eyed friend to run it :) long term blood suckers!
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Oct 23, 2014 01:13pm
Democracy brings the muck of society to the top, which results in Nandipur, Gullu Butts and ofcourse half of the country in poverty.
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Oct 23, 2014 01:14pm
"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."
Bilawal Zardari see what your Uncle Nawaz has done to you, your dad and rest of your family.
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Oct 23, 2014 01:17pm
"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."
PML-N has decided not to take any legal action against PPP's Dr Babar Awan due to his contribution for saving democracy (rule of Sharif & Co.) in Pakistan.
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Oct 23, 2014 01:18pm
"A furnace oil treatment plant (FOTP) is being imported for the project."
Hopefully reach only a few months before elections in 2018.
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Oct 23, 2014 01:23pm
The wise Shahbaz Sharif has advised Nawaz Sharif as he did for Lahore Electric Supply Company recent bills on the input of his talent Minister Abid Sher Ali, the excess cost of Rs 113 billion shall be divided on all LESCO subscribers for recovery.
What a great idea!
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Oct 23, 2014 01:23pm
The wise Shahbaz Sharif has advised Nawaz Sharif as he did for Lahore Electric Supply Company recent bills on the input of his talent Minister Abid Sher Ali, the excess cost of Rs 113 billion shall be divided on all LESCO subscribers for recovery.
What a great idea!
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Oct 23, 2014 01:25pm
Democracy cannot work in Pakistan, awam is jahil.
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Oct 23, 2014 01:36pm
This good for nothing lot cannot even walk on the ground without a carpet. What else can the country expect from them?
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Oct 23, 2014 01:39pm
Can't believe they rolled out carpet at a power plant....this is too much
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Oct 23, 2014 02:18pm
Pathetic.Looks like pharaohs are walking on the rugs, so their kingly shoes & feet would not get dusty.What a sorry state of VIP culture we are living in.ALLAH ALMIGHTY help us to find the just & honest GOD fearing rulers.
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Oct 23, 2014 02:25pm
I wonder how come the same politicians when running their personal businesses never undergo such big losses. Their business plans , deals, project pipelines all goes perfectly well, but when it comes to the public's money they act as if they dont care if anything else in the country works, other than what they own.
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Oct 23, 2014 02:32pm
no problem...we will ask more loan from IMF..
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Oct 23, 2014 02:47pm
@Truthseeker - There are many names like that for many places from the past. A mega construction projected in Karachi is on hold as it affects a Hindi Temple nearby. The harsh reality is ‘Do something good and no one remembers, do something wrong and no one forgets’.
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Oct 23, 2014 03:06pm
@Chirag: If carpet is too much then you would have lost your mind the way whole distance from Gujranwala to Nandipur was decorated with banners, flags and big hoardings to highlight the accomplishment of Shareef brothers. Not to mention three hours of traffic stoppage due to His Excellency's helipad arranged smack in the middle of the highway.
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Oct 23, 2014 03:30pm
Long live good governance! Another feather in the Sharif crown after appointment of Mariam Nawaz as head of loan program.
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Oct 23, 2014 03:34pm
I am not surprised at the financial loss, I am surprised people still support Sharif Khandan an it's characteristic nepotism.
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Oct 23, 2014 03:39pm
Did they really need to waste more money on that carpet?
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Oct 23, 2014 03:47pm
Ye bhi Imran Khan ki ghalti hai :P
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Oct 23, 2014 03:53pm
@Dr Qureshi, Not a single muslim country is democratic in the world. They don't the meaning of democracy. They believe in dictatorship. They are OK during dictatorship. You give them democracy and they immediately indulge in murders, decoities, kidnaping and all the heinous crimes.
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Oct 23, 2014 03:58pm
23bn project reach to 113bn
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Oct 23, 2014 05:23pm
During past forty years I must been to more 500 manufacturing, power plants and refining plants, but I have seen carpet flooring on the exterior grounds even during the visits of governors and senators of the United States. This is tax payers money of a very very poor country spent just to to kiss up to the boss. Shame on the plant mangers and PM Sharif.
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Oct 23, 2014 05:24pm
"However, instead of furnace oil, diesel was reportedly used to run turbine which risked the whole plant." .... Am I reading this correctly...
How can they make such a mistake ...
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Oct 23, 2014 05:50pm
Blame it on IK. Are you going to put PPP in jail for this? is out Judiciary there to raise suo moto against this? all are sold and equally beneficiary of 113Bn
.
All on one side and IK on other!
Be determined IK, whole nation is with you!
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Oct 23, 2014 06:26pm
Well Done.
Who will be responsible for this loss. The answer is we "Pakistani" nation except politicians as due to this this type of project later become rich.
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Oct 23, 2014 06:32pm
Aaah so this is the democracy that NS and his supporters are trying to protect. We all get it Mr NS. You've survived the dharnas, but it won't be long before your next crisis.
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Oct 23, 2014 06:38pm
Even then everybody is laughing and look relaxed, very thick-skinned I must say.
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Oct 23, 2014 06:44pm
@Dr Qureshi: Awaam is deliberately kept Jahil (illiterate) by our governments.
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Oct 23, 2014 06:56pm
John Roberts, the 17thchief justice of the United States, stated, “It is not our job to protect the people from the consequences of their political choices.”
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Oct 23, 2014 09:23pm
@Dr Qureshi
Qureshishab, It is people of Pakistan who should take the bull by the horn and make the democracy work. There are many smart Pakistani individuals in field of science, business, political science in the western world and in Pakistan who somehow are staying away. Regrettably. What is the root cause why the democracy is not working?
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Oct 23, 2014 09:35pm
Lets make another commission to investigate the commission to see who got how much commission in this project
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Oct 23, 2014 09:35pm
only 113 ?
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Oct 23, 2014 10:15pm
I know a little bit about fuels. I don't think diesel can harm the system if used instead of furnace oil. Something serious must have happened which is being blamed on the fuel used.
Part of the cover up I believe.
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Oct 23, 2014 11:07pm
Someone must have a vested interest in delaying the project.
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Oct 24, 2014 12:18am
Can we resolve the energy crisis of our country where government officials/ bureaucracy are mostly non professionals, corrupt and politically influenced who mostly rely on manipulated reports, serving the interest of foreign investors and someone’s personal commission and kickback interest rather than the interests of Pakistan?.
A recent example is of Nandipur power project. You cannot run even a normal business, where typical electricity from the grid costs an astronomical amount and the prices of products/ manufactured goods go soaring compared to worldwide competitive market.
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Oct 24, 2014 02:04am
@kalman , The root cause is the educated Pakistanis in Pakistan and outside will never carry arms and fight with these criminal politicians, because they are EDUCATED.
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Oct 24, 2014 02:07am
Who says wasted? Ask the people connected with the deal and you'll find the money trail.
Wasted. Yes - for the government and people of Pakistan. What about how and who got benefited ?
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Oct 24, 2014 02:14am
@kalman
There are/were many smart people in Pakistan. --- but our so called democracy somehow keep on loosing them--- sometime in the name of religion ( Salam) they are kicked out , sometimes and most of the times -- no appreciation --- ( no jobs unless you are from a particular party or braadari ) after all smart people need food also --- and god forbid if someone is able to achieve glory/ money --- all the politicians and sarkar comes to you with their tongues out asking for --- saada hissa ---- prime example--Zardari. And the list goes on.
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Oct 24, 2014 02:52am
I am at loss to understand how the initial project cost of 23 billion can increased by 90 billions to reach at 113 billion? Still the project is nowhere. Whatever the reasons are how the cost can increase by 500% virtually without doing it. Reporter must have provided more details to help us understand the scenario.
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Oct 24, 2014 04:17am
So Sharif came in and made the Chinese firm agree to complete the work but the cost was increased. Sounds like came in took his cut and agreed to a higher charge for the government. Wake up Pakistan.
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