Probe into power projects: Senate panel for action against PD for providing ‘misleading' info
The inquiry pertains to the ACSR Bunting Conductor tender and the World Bank-funded 765kV Dasu-Islamabad Transmis-sion Line Project (Lot-1).
According to official documents, Additional Secretary Power Division, Imtiaz Hussain Shah, informed the Committee on June 30, 2025, that the Ministry of Foreign Affairs had confirmed no Power of Attorney (PoA) related to Chinese firms M/s Henan Tong-DA Cable Co. Ltd. or M/s Jiangsu Zhongtian Technology Co. Ltd. was submitted to the Pakistani Embassy in Beijing for verification. The Embassy also clarified that since Pakistan joined the Apostille Convention in November 2024, such attestations are no longer required through diplomatic channels.
HUBCO proposes $51mn investment in Thar-based coal projects
The Committee, chaired by Senator Saif Ullah Abro, directed the EAD and Power Division to directly contact the companies involved to determine whether they had ever submitted such documents.
In its session, the Committee was also briefed on the submission of records for a special audit into the ACSR Bunting Conductor case. These were handed over to the Auditor General's office on June 4, 2025.
Regarding the high-voltage Dasu–Islamabad Transmis-sion Line (Lot-1), the Power Division shared that the internal inquiry led by GM NGC Muhammad Mustafa had recommended referring the matter to the World Bank. The Bank, in response, confirmed that the procurement process was conducted in line with its guidelines.
However, the Committee expressed concern over a potential cover-up. Officials from the Power Division failed to present the supplementary report that supposedly formed the basis for communication with the World Bank. Instead, they showed only a letter written by a former senior official, which the Committee suspects was intended to conceal irregularities. The panel demanded all correspondence relating to that letter and clarified that under World Bank procurement regulations, the borrower (in this case, Pakistan) holds full responsibility for the procurement process.
The Committee was told that no formal inquiry report was ever prepared or submitted by former caretaker Energy Minister Muhammad Ali, despite his active role as head of an internal investigation committee. Power Division officials stated they had only heard about an unsigned report, which was never officially shared.
The Committee was visibly shocked and questioned how the former Minister was able to present conclusions at a Senate Standing Committee meeting on February 20, 2024, without a documented report. It directed the Power Division to locate and submit even an unsigned copy of the inquiry findings and recommended that EAD take disciplinary action against the Power Division for providing misleading information in this matter.
The Committee further advised EAD to seek clarification on how both the former caretaker Minister and the then Secretary of the Power Division—members of the inquiry committee—could act with such negligence, allegedly concealing facts about financial and procedural irregularities in key power sector tenders.
On the issue of recovering Rs 1.282 billion from a contractor involved in the 765kV Dasu–Islamabad Grid Station (Lot-IV), the Committee clarified that the NTDC Board was not authorized to conduct an independent inquiry. It recalled earlier discussions confirming that the disputed amount was not to be considered in the bid evaluation, per the bidding documents.
The Committee instructed EAD to formally write to the Public Accounts Committee (PAC) to ensure recovery of the Rs 1.282 billion from the lowest bidder in line with earlier recommendations.
Copyright Business Recorder, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
5 hours ago
- Business Recorder
Iesco, Fesco and Gepco set for sell-off by Dec-end
ISLAMABAD: Three electricity distribution companies - Iesco, Fesco and Gepco - will be ready for privatisation by the end of December this year. This was stated by an official of the Power Division in the National Assembly Standing Committee on Economic Affairs' meeting held under the chairmanship of Muhammad Atif Khan. Additional Secretary Power Division Mehfooz Bhatti, in his presentation, told the committee that along with Privatisation Commission, the Power Division is working on the privatisation of all 10 Discos. He said that the privatisation process of Islamabad Electric Supply Company (Iesco), Gujranwala Electric Power Company (Gepco) and Faisalabad Electric Supply Company (Fesco) is already in advance stage. 'The due diligence process of these three Discos is in final stage and Financial Advisor has also been hired,' he said. The official said as per his information, the Privatisation Commission is working on the financial structure and by December this year, Expressions of Interest (EOIs) would be invited and terms and conditions of sale purchase agreement will also be finalised. Chairman Committee Atif Khan said that no one is stopping the government from privatising the Discos but it does not mean hiring in these Discos should be stopped. He said in his constituency for hundreds of kilometers there is only one lineman and because of this people were facing a lot of hardship in getting their complaints addressed. The Power Division official clarified that their ministry did not stop any Disco from hiring necessary staff. MNA Sher Ali Arbab said that as per his knowledge there are 80,000 vacancies in all 10 Discos but Prime Minister Shehbaz Sharif has given approval to hire only 20,000-25,000 personnel to keep things afloat. Members, unanimously, expressed concern over the methodology that exclusively targets Discos with minimal transmission and distribution losses for privatisation. The committee emphasised that by limiting privatisation to only the most efficient utilities, the government would be compelled to retain chronically underperforming Discos, thereby, exacerbating existing operational challenges and making their eventual privatisation virtually unattainable. The Power Division official informed the committee that their current installed capacity is 39,952 MW that includes 46 percent from clean energy and 54 percent from fossil. The power sector informed that there is overreliance on fossil than clean energy. The Power Division presented a comprehensive overview of Pakistan's current power generation capacity to the Standing Committee, reporting a total installed capacity of 39,952 MW. The energy mix analysis revealed a concerning imbalance, with fossil fuel-based generation accounting for 54 percent compared to just 46 percent from clean energy sources. The committee was informed that Pakistan's power sector currently faces a significant surplus of approximately 7,000 to 8,000 MW in electricity generation capacity. Members expressed serious concern over the substantial financial burden imposed by capacity payments for this unused electricity, which continues to strain the national exchequer despite serving no practical purpose. The committee members raised serious concerns regarding the inequitable distribution of development projects and budget allocations for Khyber Pakhtunkhwa in the proposed federal budget for 2025-26. The committee noted with concern that while KP has a substantially larger population than Gilgit-Baltistan (GB), both regions have been allotted only two new projects each, reflecting an unjust disparity. Furthermore, the budgetary allocations for development projects across provinces revealed that Balochistan receiving Rs209.6 billion, Punjab Rs76.6 billion, Sindh Rs145.9 billion, and KP Rs30.843 billion. The Economic Affairs Division (EAD) informed the committee that it has filed appeals and interim relief applications, with hearings ongoing and the next scheduled for September 2025. Meanwhile, the EAD has sought the federal cabinet's in-principle approval for a new legislative framework, the 'Foreign Contributions (NGOs and NPOs) Regulation Act, 2025,' to address the legal gaps. Copyright Business Recorder, 2025
Business Recorder
5 hours ago
- Business Recorder
NTDC's split into new entities: World Bank seeks amendments to project agreements
ISLAMABAD: The World Bank has called for amendments to existing project agreements to replace the name of the National Transmission and Despatch Company (NTDC) with the three newly-created successor entities. In a letter addressed to the Secretary of the Economic Affairs Division (EAD), the World Bank's Operations Manager for Pakistan, Gailius J. Draugelis, rated the overall implementation progress of the National Transmission Modernization I Project as 'Moderately Satisfactory.' A Bank implementation support mission visited Pakistan from June 16 to 26, 2025, to review the project's status. According to the Bank, most components—excluding the Islamabad West Substation (IWS)—are progressing well and are expected to be completed by the end of 2025. $400m investment in reactive power compensation: 10-year transmission plan discussed with World Bank The IWS contract, a critical part of the project, is now slated for completion in November 2026. Total disbursements under the project stood at $183 million as of June 30, 2025, with improvement needed in FY26. Progress toward achieving the Project Development Objective (PDO) also remains 'Moderately Satisfactory.' The mission outlined several key findings and actions requiring close attention from the Ministry of Energy (Power Division) and NTDC's senior management. The World Bank noted that NTDC was recently restructured into three entities: Independent System Market Operator, the National Grid Company of Pakistan, and the Energy Infrastructure and Development Management Company. As legal agreements are currently signed with NTDC, the government—via the EAD—must formally notify the Bank and request amendments to the legal documentation to reflect this change. The IWS contract was the last major component to be awarded. To accommodate its completion, the project's closing date has been extended to December 31, 2026, aligning with the contractor's 30-month schedule. During the mission, the Bank emphasized that NTDC and the contractor must ensure completion and handover by the revised deadline. Given the project is in its eighth year of implementation, securing another extension beyond 2026 is considered highly unlikely. The Bank clarified that the deadline extension applies solely to the IWS contract. All other sub-projects were already in advanced stages and expected to be completed during FY2024–25. However, several activities are progressing more slowly than anticipated. The mission and NTDC agreed that all other contracts must be completed by December 31, 2025. To support timely implementation, the Bank emphasized the importance of regular coordination among contractors, consultants, NTDC field teams, and the Project Management Unit (PMU). These interactions would help identify and resolve issues, including contract amendments for time extensions and scope changes. Notably, such interactions have been limited to Bank missions. The PMU has now agreed to hold monthly review meetings starting July 15, 2025, and will maintain full staffing until project closure. Regarding contract change order management, the Bank acknowledged that NTDC has resolved the issue of contractors operating without valid agreements. However, some recently extended contracts are again nearing expiry before work is completed. A similar issue is affecting five contracts under the Enterprise Resource Planning (ERP) component. NTDC has assured the Bank that all necessary contract extensions will be finalized by mid-July 2025, and that no further work will be done without valid contracts. The mission noted steady progress in the ERP system implementation, aimed at modernizing NTDC's operations. Several modules are scheduled to go live within the next two months, with full rollout expected by December 2025. To ensure successful adoption, the Bank urged NTDC to improve communication with staff regarding system benefits, impacts, and rollout timelines. NTDC has agreed to update employees regularly through emails and other media. Addressing the right-of-way issue on the 500kV Nowshera transmission line, the Bank stated that construction had been delayed for over a year due to denial of access to tower location No. 23. While NTDC has secured verbal consent from the landowner with help from the district administration, the Bank has advised obtaining written consent and a formal agreement to prevent future disputes. NTDC is also required to finalize all related documentation and payments before resuming construction. Regarding compensation payments for IWS, NTDC had previously committed to clearing all outstanding payments by May 31, 2025, but some remain pending. These involve small amounts that affected persons are reluctant to collect due to the cost or effort involved. Following government practices, the Bank has advised NTDC to consider alternatives such as mailing cheques or depositing funds with the Deputy Commissioner's office for disbursement. NTDC has now committed to completing these payments by August 15, 2025. Finally, the World Bank commended both the Government of Pakistan and NTDC for efforts to resolve security challenges that had disrupted project activities in Balochistan. The mission was informed that the contractor for the Loralai and Sibi substations had received necessary security assurances and resumed construction at the sites on June 23, 2025. Copyright Business Recorder, 2025
Business Recorder
5 hours ago
- Business Recorder
Saudi announces $5bn in Syria investments
RIYADH: A Saudi delegation visiting Damascus on Wednesday inked investment and partnership deals valued at $5 billion to help rebuild war-battered Syria, the oil-rich Gulf kingdom announced. Saudi Arabia has been a major backer of the new Syrian government, which seized power after Islamist-led rebels toppled longtime ruler Bashar al-Assad in December following 14 years of civil war. The delegation of some 150 investors and representatives of the Saudi public and private sectors, led by Investment Minister Khalid Al-Falih, attended a forum in Damascus. 'The announced investments, valued at 19 billion Saudi riyals (about $5 billion), span vital and strategic sectors, including real estate, infrastructure, communications and IT, transportation and logistics, industry, tourism, energy, trade' and more, a statement from the investment ministry said. On Tuesday, the ministry had said the Damascus forum aimed to 'explore cooperation opportunities and sign agreements that enhance sustainable development and serve the interests of the two brotherly peoples'. Earlier this month, President Donald Trump formalised the dismantling of US sanctions on Syria, hoping to reintegrate the country into the global economy. He had already lifted most of the measures in May, responding to appeals from Saudi Arabia and Turkey. The US president met Syria's interim leader Ahmed al-Sharaa during a visit to Saudi Arabia the same month. Sharaa, a former jihadist, had also paid a visit to Riyadh in February in his first trip abroad since Assad's ouster. Earlier this year, Saudi Arabia and Qatar pledged to settle Syria's debt to the World Bank, totalling about $15 million. Despite vows to unify the country, the new government in Damascus has struggled to maintain order, with deadly clashes involving minority groups raising questions about Syria's stability.
