Rs15 billion scam: Senate panel seeks details of Nandipur project cost

Asks about independent power projects and their owners, who were paid Rs480 billion.

ISLAMABAD:

The Senate Standing Committee of Water and Power has sought details over cost escalation in the Nandipur power project from the concerned ministry.

It has also sought details about the independent power projects (IPPs) and their owners, who were paid Rs480 billion by the incumbent government during the past three months.

Prime Minister Nawaz Sharif had also directed the Planning Commission earlier to conduct an inquiry into the increased cost, which reportedly jumped from $329 million to $570 million, without any justification.



The Senate body meeting, chaired by PPP Senator Maula Bux Chandio, stressed the need to probe the delays and cost escalation in the power project, which was specially mentioned by the premier in his address to the nation.

“The committee will itself take steps to expose the elements behind the delay and cost escalation of the project so that the people could know about the ground realities,” said Chandio. The government had reportedly cleared the circular debt owed to the IPP owners, but the resurgence of debt to the tune of Rs165 billion is disturbing and needs to be investigated, according to the sub-committee of the upper house.

Senator Nisar Muhammad, who is also a member of the Senate committee, said that both the Nandipur power project and the circular debt issue need to be taken up separately rather than be clubbed as a single item on the agenda.



The alleged scam in the 425MW project was exposed by former Pakistan Electric Power Company (Pepco) managing director Munawer Baseer in a letter address to the Supreme Court chief justice in August, highlighting the escalation of costs.

A scam of Rs15 billion was pointed out by the former Pepco MD, who had alleged that the well conceived scam aims to cheat the public exchequer of $149 million to benefit a select private sector company. The revised PC-1 of the Nandipur project is a ‘white collar scam,’ Baseer said.

The letter penned by the Baseer further stated that all equipment and machinery required is at the port and has already been paid for. Accounting for increases in insurance and other payments, $124 million is still unaccounted for, the former MD of Pepco identified to the chief justice to take notice.

Published in The Express Tribune, September 17^th, 2013.