Nawaz’s energy targets set to miss deadlines

Conversion of Guddu, Nandipur to gas-fired plants not possible anytime soon

ISLAMABAD: Prime Minister Nawaz Sharif was informed on Monday that the conversion of a highly expensive thermal power plant into gas was not possible before next year amid reports of serious irregularities committed during the execution of the project.

The controversial Nandipur Power Project has lately been in the spotlight – but for all the wrong reasons. From the reports of corruption – including huge rise in the project’s cost – to long delays in its launch, the plant lurched from one controversy to another.



Petroleum Minister Shahid Khaqan Abbasi told the prime minister that the conversion of Guddu and Nandipur into gas-based plants was not possible anytime soon, and said “steps” were being taken to achieve this target by next year, official sources told The Express Tribune. However, a carefully-drafted press release issued by the PM House attempted to give the impression that everything was well.

“The federal minister informed the prime minister that all arrangements were in place to ensure the provision of gas to Guddu and Nandipur power projects next year.”



“Sui Northern Gas Pipelines (SNGPL) and Sui Southern Gas Company (SSGL) are heavily investing in the up-gradation of transmission and distribution network across the country,” the statement said.

The sources said contrary to what the minister had assured the prime minister, the stipulated timeline for power projects, including the conversion of the two projects into gas-based plants, was fixed between June 2017 and March 2018, implying that the conversion of these power projects and completion of others can drag well beyond next year.

On August 6, the prime minister was briefed by water and power officials on the progress of power projects – including the conversion of Guddu and Nandipur power projects.

The Nandipur Power Project was inaugurated in May 2014. It became fully functional in July 2015. However, in September 2015, the plant stopped functioning owing to ‘technical problems’.



The plant was made functional in October, but broke down again in November and questions were raised over the capacity and operational durability of the project. The government decided to covert the plant into gas after being criticised for producing highly fuel-expensive power. Reports suggest that the cost of the project that was Rs23 billion has soared up to Rs58 billion.

Last month, Wapda chairman Zafar Mehmood had resigned reportedly due to his differences with the federal government over the issue of mega power plants.

Mehmood called on the prime minister on August 16, and quit his office on August 22 – less than a week later. The prime minister was reportedly unhappy over repeated delays in the execution of power projects and expressed his annoyance during his visit to the Neelum-Jhelum Hydroelectric Project on August 12.

Meanwhile, the statement issued by the PM Office after Monday’s briefing passed the buck on to past governments for the energy crisis.



“The government has been making speedy progress in all key sectors including energy, infrastructure development and social welfare projects to mitigate sufferings of the common man,” it said.

“The improved law and order situation of the country is destined to encourage further investments – from both local and foreign investors – in diverse fields of the economy. We are determined to pursue our revolutionary agenda of economic revival and development,” the statement quoted the PM as having said.

Published in The Express Tribune, September 6^th, 2016.