SC asks for details on rental power projects
A divisional bench headed by Chief Justice Iftikhar Muhammad Chaudhry was hearing two identical petitions filed by federal minister Faisal Salah Hayat and PML-N MNA Khawaja Asif.
During the course of hearing, Hayat informed the court that independent power producers (IPPs) could have produced 6,000 megawatts (MW) electricity had the government fully exploited their potential. The minister termed the Asian Development Bank (ADB) report on rental power projects (RPPs) a charge sheet against the minister for water and power and held the government responsible for criminal negligence. He pointed out that in May 2008 the Pakistan Electric Power Company Limited had a capacity of 19,500MW and an additional 1,700MW were to be added by three IPPs who were awarded licences.
Chief Justice Iftikhar Muhammad Chaudhry said court proceedings were initiated to safeguard the national interest. He enquired why no action was taken against corruption in RPPs. “Had a debate been initiated in parliament, the federal minister might not have had to approach the court.” Hayat informed the bench that over a dozen adjournment motions were turned down by the National Assembly speaker. He said he would table the matter before parliament in the next session. He accepted that parliamentarians had failed to resolve people’s problems. Further hearing was adjourned till Friday (today).
On Wednesday, the court had constituted a one-man commission headed by a retired SC judge, Justice Rehmat Hussian Jaffery to investigate delays in the commissioning of the government-owned Nandipur and Chichokimalian power projects for which Asif had separately petitioned the court. Asif had contended that civil work on the Nandipur project was complete, but its machinery was rusting at the Karachi port because the ministry of law had not cleared sovereign guarantees. The project was supposed to generate 425MWs from April. The Chichokimalian power project was to produce 525MWs. The contract was awarded to a Chinese firm but the law ministry did not release sovereign guarantees and the project was demobilised after installment. Now the firm is willing to resume the project but on revised rates. Asif had said 975MWs could have been added to the national grid and the electricity produced from these two power projects would have been cheaper than both RPPs and IPPs.
(Read: SC’s campaign against corruption)
Published in The Express Tribune, October 28th, 2011.
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Well done Faisal Saleh and CJ sb.... Please expose more corruption of this blood sucking govt... At least someone in the Govt is taking the initiative to stop this
Think about it, you rent a car, do not use it as it has no fuel and then you pay for rental costs without using it on daily basis plus the exorbitant advance payments. A flawed policy, showing total incompetence of those responsible and corruption of the highest order. The whole thing is a scam driven by pure greed and disloyalty to the nation.
Most of the companies that offered rental plants had no similar experience plus the mobilization advances paid to these guys are unprecedented in the energy industry. The tariff offered by these companies is obnoxious and way out of line with generation costs. The rental terms offered by the Government seemed to be put together by people who had no clue about rental plants and their performance characteristics. To top it all these plants never made it on on line and were paid exorbitant capacity payments with no generation. The Supreme Court has a good common sense question: What was paid and what were they supposed to provide in terms of generation? To get to the bottom of all this the Court should follow the 'money trail' and all will fall in place.
Less corrupt accusing the more corrupt. O what have we become, just what have we become?
@Pundit: thanks for sharing this
We must all understand that these politicians do not long to reach the top positions to earn SAWAB. Educating children in the top foreign universities and spending vacations in Europe costs a lot these days.
@Meekal Ahmed: Sadly true.
@Pundit:
The ADB cannot run your power sector for you. That is not their job.
Just like the IMF cannot collect taxes for you or the World Bank cannot implement your poverty-alleviation programs.
I thought Faisal Saleh Hayat is himself in government. Isn't he? That's the new level of irony, knowing the fraud and still helping them
When will the ADB prepare the Report on Pakistan Railways? on Pakistan Airlines?
After glancing at the ADB Report I am convinced that Pakistan should outsource the entire POWER SECTOR to someone external like the ADB.
For those interested the report is available at:
http://www.pepco.gov.pk/ABD_Report.pdf
(staff at TET may also note)
62 MW iso 2700 MW: Cruel Joke on the Nation.
Such delicate and diplomatic reporting: no one mentions the date of the ADB report:)
"He said that the Asian Development Bank (ADB) had also pointed out corruption in the scheme,"
And the same ADB should provide large loans for the Daimer Basha Dam?
And i have chosen to be part of It :)
There goes our last HOPE
something new???