WAPDA served legal notice on Munda Dam

Munda Hydropower Limited has served a legal notice on the Water and Power Development Authority.

LAHORE:
The Munda Hydropower Limited (MHL) has served a legal notice on the Water and Power Development Authority (Wapda) for inviting expressions of interest (EoIs) for the construction of Munda dam from third parties. Wapda has confirmed receiving the legal notice.

MHL has also asserted that Wapda is liable for contempt of court proceedings since it has invited EoIs for undertaking detailed engineering design and preparation of tender documents for construction of the dam from companies other than MHL, in violation of orders issued by the Islamabad High Court.

The company, through their attorneys Hafeez Pirzada Law Associates, has already served a legal notice on Wapda and is expected to file an application for contempt of court proceedings in the Supreme Court in the coming days.

The Munda Multipurpose Dam Project (MMDP), a mega hydropower project proposed to be constructed on Swat River (about 35 kilometres from Peshawar), happens to be the first mega project given to the private sector for development under the Power Policy of 2002, said MMDP’s Managing Director, Ahmed Masud while talking to The Express Tribune.

He said that MHL had successfully completed the feasibility studies for the project in November 2006 within a record period of 24 months after spending a colossal amount $15.85 million.

A panel of experts appointed by the Private Power and Infrastructure Board (PPIB), ministry of water and power had continuously monitored the progress of feasibility preparations, he added.


“PPIB, while conveying the approval of the feasibility studies of the project, directed the sponsors to approach Nepra for finalisation of the tariff,” he said. But before the sponsors could file a tariff petition with Nepra, Wapda raised certain objections regarding the dam parameters.

Masud contended that Wapda unnecessarily dragged on the issue and in March 2008, the PPIB intimated Amzo LLC, a minority partner in the MHL, that the government is constrained by public interest to assign the project to Wapda.

He said the MHL had no choice but to file a suit in the Islamabad High Court (IHC), which allowed the application for interim relief moved by the sponsors and restrained the defendant, the Government of Pakistan (or any of its agencies), from creating any third party interest in the MMDP pending final disposal of the civil suit.

He concluded that Wapda has announced project ownership and invited EoIs for undertaking detailed engineering designs and preparation of tender documents.

Wapda Director Public Relations Muhammad Abid Rana has confirmed that the authority has received the legal notice and its lawyers are looking into the matter.

Published in The Express Tribune, September 16th, 2010.

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