SC asks for details on rental power projects

PML-Q leader said that the auditor general’s report has revealed corruption worth Rs 50 billion in the rental power projects. PHOTO: AFP/FILE

ISLAMABAD: The Supreme Court (SC) on Thursday has asked the government for a detailed brief on rental power projects (RPPs).

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 28^th, 2011.