ISLAMABAD:
The Supreme Court was unconvinced on Monday by the counsel for Guddu Rental Power Project, who claimed that the RPP was set up unsolicited because no other party showed concern.
The hearing is part of the SC’s suo motu proceedings into alleged irregularities in the RPPs. The court had expressed concern over the increase in the payment of mobilisation advances from 7% to 14%, in addition to deploring the absence of a coherent, transparent policy on setting up RPPs.
“Was there an advertisement in the newspaper for inviting bids to set up the plant?” Chief Justice Iftikhar Mohammad Chaudhry asked Dr Pervaiz Hasan, who is representing Guddu, Bhekhi and Multan rental power plants. Justice Khilji Arif Hussain said that the RPPs were a disservice to the nation, as they had not met the required levels of power generation.
“Think about the labourer who has to go home without work because of the absence of electricity,” Justice Khilji said.
Dr Hasan said the Bheki power plant was set up after Alstom refused to do business in Pakistan. Although unsolicited, the plant was set up in accordance with the criteria laid down in the agreement.
Khwaja Tariq Rahim, counsel for the ministry of water and power, said that Bheki did not owe the authorities any money as it had returned the advance. He added that the project management were also fined after the RPP did not generate the required electricity.
Dr Hasan said he should not be “guillotined” for the delay in achieving the commercial operation date, because the authorities were also at fault. “The delay in identifying the site for setting up the project and the absence of the promised provision of gas were some of the reasons why the project took off late,” he said.
The chief justice said that transparency in terms of implementation was a basic standard and requirement across the world, something the RPPs had failed to observe. “You have not demonstrated it, neither in soliciting the contract nor in implementation,” he said.
Earlier, the court issued a notice to the ministry of water and power in an application by Reshma Power Generation Ltd (RPGL) which seeks millions of rupees for providing electricity to the Northern Power Generation Company Limited.
The RPGL counsel, Abdul Hafeez Pirzada, said the entire amount of the mobilisation advance had been returned to the Northern Power Generation Company Limited (NPGCL). He added the NPGCL was making a frivolous claim.
The counsel said that because the RPGL was now providing electricity, it should be given due consideration. The hearing continues on Tuesday (today).
Published in The Express Tribune, December 13th, 2011.
COMMENTS (2)
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This is really bad. I agree with SID. http://www.rentthings.ca
Our institutions have become accustomed to the SC's stick. they will not work properly unless SC intervenes as a last resort.