AG sets up team to probe Nandipur project

ISLAMABAD: The Auditor General of Pakistan (AGP) has constituted a special team for scrutinising non-starter multibillion rupees Nandipur project with the mandate to furnish their findings in 10 days by fixing responsibility on those who played key role in failing of this project.
Prime Minister Nawaz Sharif might roll some heads of top guns after receiving report of auditors who were assigned to fix the responsibility on those who remained unable to ensure coordination among all the stakeholders and absence of which caused delays in execution of the project in timely manner.
In the terms of reference (ToRs) to probe fiasco of Nandipur project, the auditors will ascertain facts about delays in project, causes of cost escalation and fixing responsibility among all players including Ministry of Water and Power, Gencos, Nepra or Nandipur project management for causing failure or lack of coordination among relevant stakeholders for failing this project.
“We will present our finding report within next two weeks period on the basis of three major terms of references (ToRs) forwarded by the government,” the Auditor General of Pakistan (AGP) Rana Assad Amin said in a brief chat with The News on Sunday.
He said that the special audit team had started its work two days back and they were assigned to come up with their findings within 10 days. Then they required few days to compile their report so they will be able to present their report within next two weeks period, he added.
Prime Minister Nawaz Sharif had ordered to carry out special and commercial audit of the Nandipur project. This project was conceived and approved during Musharraf/Aziz regime with the help of Chinese company at an estimated cost of Rs22 billion and its cost has now escalated to Rs58 billion. So far total utilisation stood at Rs51 billion on this project.
When inquired about cost controversy, senior official said that some people were using existing exchange rate to show

increased cost of this project to the tune of Rs82-84 billion, while when this project was approved the rupee was standing Rs67 against US dollar. The portion of procurement was completed so how the cost could escalate up to Rs84 billion, he questioned?
During the PPP led regime, this project was put on the backburner, as its imported machinery remained lying at port for several months.
When the PML-N took over, they made efforts in haste to start this project without testing capacity of fuel oil treatment plant (FOTP).
The FOTP was supplied by the Engineering Procurement and Construction (EPC) contractor for treatment of High Sulfur Furnace Oil (HSFO). After installation of the FOTP, the testing and commissioning work was started by the EPC contractor through M/S GEA Weastfalia in September 2014. But the optimum capacity of the FOTP could not be achieved. The employer and the engineer immediately took up the matter with the EPC contractor for its early resolution as per its agreement.
In the meantime, an inquiry was conducted by the Water and Power Ministry to find out the issues, reasons and solution regarding the FOTP in May 2015. The Nandipur management had already taken up the matter with the EPC contractor for its resolution under intimation to all concerned.
Now the Board and management of Nandipur were poles apart as the management was allegedly trying to hide things but the Board members were reluctant to give Operation and Management (O&M) contract that might cause billions of rupees loss to national exchequer without rectifying capacity of treatment plant.
So blame game is underway to shift responsibility on shoulders of others but the government will have to come up with crystal clear strategy to come out of this mess.