ISLAMABAD: The Senate Standing Committee on Power Wednesday directed the Power Division to provide details of capacity payments made so far to the Independent Power Producers (IPPs) in the next meeting.
The committee, which met with Saifullah Abro in the chair, also took stern action with regard to recent increase in electricity cost.
Officials of Power Division informed the committee that per unit price stood at Rs30.55 during March. The officials said that capacity payments to different IPPs was major reason behind the increase in per unit cost.
Senator Saifullah Abro remarked that the government should freeze capacity payments to IPPs by keeping in view the current inflation in the country.
The Senate Committee took up the matter of construction of 765kV, double transmission line from Dasu Hydro Power Station to Islamabad. The Project was financed by World Bank at a cost of $ 700 Million.
Rana Abdul Jabbar Khan, MD NTDC, apprised that project was advertised on December 30, 2016 and 20 firms had submitted the applications and out of which six firms were shortlisted.
Senator Saifullah Abro remarked that the evidence submitted by NTDC, clearly showed that irregularities had been committed, while awarding the contract.
The Chairman directed NTDC to submit all the necessary documents in the next meeting.
Additionally, the committee examined the bidding process of K-Electric. Officials of Privatisation Commission apprised the committee that the process was initiated in 2002 and four private entities submitted Expression of Interest (EOI), but only two entities qualified for bidding process which included Kanooz Al Watan and Hasan Associates with offering bid of Rs1.65 per share (Rs15.86 Billion) and Rs1.01 per share (Rs.9.71 Billion) respectively.
However, Kanooz Al Watan did not make the balance payment and K-Electric was awarded to Hasan Associates at Rs1.65 per share amounting to Rs15.86 Billion, they added.
Moreover, officials informed that Financial Adviser was appointed by Asian Development Bank to evaluate the value of K-Electric and complete it’s privatisation process.
Senator Saifullah Abro opined that while evaluating the price of K-Electric, what factors were taken into consideration by Financial Adviser. He also directed the Privatisation Commission to provide appointment details of Financial Adviser.
The meeting was attended by Senator Fida Muhammad, Senator Zesshan Khanzada, Senator Sana Jamali, Senator Haji Hidayatullah Khan, Additional Secretary Power Division Arshad Majeed, MD NTDC Rana Abdul Jabbar Khan and other senior officers of relevant departments.
