Neelum Jhelum project funds: Lawmakers order probe into alleged misappropriation

Direct power ministry’s special secretary to submit a detailed report.

ISLAMABAD:

While expressing concerns over reports of alleged irregularities in the usage of electricity surcharge being collected for the Neelum Jhehlum hydropower project, a parliamentary panel has initiated a probe into the alleged misappropriations on Wednesday and sought a detailed report within ten days.

The Senate Standing Committee on Water and Power, which met on Thursday with Senator Zahid Khan in the chair, was informed that power distribution companies (DISCOs) had collected Rs25 billion through an electricity surcharge levied to raise finances for the Neelum Jhehlum project. A power ministry official said that DISCOs were collecting the power surcharge from consumers at the rate of 10 paisa per unit for a total of Rs500 million per month. Senator Zahid Khan, in his reply, said that misappropriations had been pointed out in the usage of collected amounts, and the committee was concerned about where the money was being spent.

The senate committee ordered a probe into the collection and spending of amounts collected on account of the power surcharge from consumers, and directed Water and Power Special Secretary Himayatullah to submit a detailed report within the next ten days. The committee also directed the special secretary to check the quality and pace of work on the site of the Neelum Jehlum project.

Khan also noted that misappropriations had been pointed out in the construction work of the Jabban power station and directed Himayatullah to look into the matter, or else the committee would consider referring the case to the National Accountability Bureau (NAB). The senate committee also warned Wapda from purchasing any vehicles without first informing the committee.

During the meeting, Water and Power Development Authority (Wapda) Chairman Syed Raghib Abbas told the committee that development work on Neelum Jehlum had been expedited, and that 43% of the work on the dam tunnel had been completed. Shah also told the panel that a financing plan had been devised to arrange Rs1.50 billion every month for the uninterrupted functioning of the tunnel-boring machine employed on the Neelum Jhelum project.

The Wapda chief apprised the committee that land acquisition work had been started on the Kurram Tangi Dam and that construction work on the project would be started after the US Agency for International Development had completed its environment study.  He told the committee that Rs200-300 million would be spent on land acquisition, Rs100 million on consultancy and Rs100 million on administrative expenditures for the project. He said that the process of land acquisition would be completed by March, and that Wapda would seek assistance of the provincial government for holding a tribal hearing on January 15 to discuss other small issues hindering its construction. The committee directed him to provide complete details of the hearing to its members and provide updates on the project. It also asked the Wapda chief to provide a list of dams under construction in the country which mentions their date of commencement.

Shah also raised the issue of Wapda employees kidnapped while working on site, and said that they are facing difficulties in their release. The committee assured him full support and directed the power ministry’s special secretary to hold a meeting with concerned authorities to negotiate for the release of the kidnapped employees.

In his address, the special secretary informed the committee that the concept paper of the Dasu hydropower project was ready and had been sent to the Economic Affairs division so that it could seek funding from donors.

Himayatullah also said that international donors were reluctant in extending financing for the $14.5 billion Diamer Bhasha dam due to pressure from Indian lobbyists. He said that government was considering securitising assets of Wapda’s dams to generate funds for the project.

Published in The Express Tribune, January 4^th, 2013.

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