PM takes notice of Nandipur Power project scandal

KARACHI: Prime Minister Nawaz Sharif has taken notice of the scandal of the Nandipur Power Project, said Shahzeb Khanzada while presenting his analysis in the programme ‘Aaj Shahzeb Khanzada Kay Saath’ on Tuesday.
He said, “We raised questions in our programme on Monday regarding the Nandipur Power Project. It was pointed out that the project was going to develop into a very big scandal of the Pakistan Muslim League-Nawaz (PML-N). It is a project for which Nawaz Sharif had made tall claims, while Shahbaz Sharif had very vehemently criticised the PPP government. Millions and millions of rupees were spent on running advertisement campaign giving false hopes to the nation. “False hopes we say in the sense whatever promised in the advertisements was not correct. However, the government has taken notice and Minister for Water and Power Khwaja Asif contacted the Geo News, saying he wanted to answer the questions raised on the Nandipur Power Project and also wanted to speak on important matters relating to the project. The minister said he wanted to talk as to who was responsible for it and also to speak about whether it was really a big project, due to which, Khwaja Asif said the government was facing humiliation and also wanted to explain the stance of the government.
Shahzeb Khanzada said it was disclosed how Water and Power Ministry proved its incapability to handle the Nandipur Power Project. It is only a day after our indicating the faults that the prime minister took suo moto notice, expressed extreme resentment. He summoned an important meeting, which he chaired himself. It was attended by Shahbaz Sharif, Ministry of Water and Power Secretary Yunus Dhaga and Nandipur Power Project MD Mahmood Ahmad. It was decided in the meeting to form a four-member committee to revive the project and to submit audit report within a fortnight.
“We will discuss the matter with Khwaja Asif in today’s programme, Shahzeb Khanzada said adding that it was being

alleged his ministry was responsible for the scandal. The matter of the project was raised two and a half years earlier. The cost of the project in the beginning was Rs32 billion. It was stated at that time that the government of the PPP had delayed the project. There was severe criticism by the PML-N on the PPP.
Later, the cost of the project was enhanced to Rs57 billion and Chinese company was given the contract. Objection was raised at that time to increase the cost of the project but even after increasing the cost and making tall claims the PML-N could not run the project.
Shahzeb said, “Your government made very tall claims. You had yourself told in my programme to give you two more months. Mian Shahbaz Sharif placed advertisements of several million rupees in which he was also portrayed in the advertisements.”
It was said that 425MW would be produced by December 2014. Abid Sher Ali invited him to go with him to see the project and had boasted in his programme that power was being produced. But nothing happened. What he would say about it and if it was not his responsibility. What he would say in this matter.
Khwaja Asif said: “Thanks for giving me an opportunity; I wish to reply your questions one-by-one. You were talking about delay, while I had told it would be complete in the month of February, while Abid Sher Ali spoke about two to three more months. The machinery of the project kept lying at the port for many years and had got rusted. When we installed and started it there were faults and parts of the machines had to be replaced and thus we could not keep our commitments. In the month of June we started experimental running, when it was transpired that the fuel treatment plant cannot treat 425MW fuel but can treat up to 250MW only. Some of the engineers opined that this very treatment plant will cater the whole plant, while other engineers did not agree. We treated the fuel and re-used it and ran the plant to produce 450MW.”
Shahzeb Khanzada: “The cost of the plant was $329 million. It is sad what happened during the PPP tenure, but later you increased the cost from Rs32 million to Rs57 million and you are asking the management of Nandipur that the awarding contract to the Chinese company was not proper. There are problems in it. There is no accountability. The board of directors was not approved. All of these jobs were done by you. You made new PC-1 and the then MD of Pesco went to the Supreme Court. Thus everything was done by your ministry. Isn’t it your
responsibility?”
Khwaja Asif: “I accept the responsibility of whatever problems and hindrances are taking place in the Nandipur Power Project. I am here to answer you.”
Shahzeb Khanzada: “PC-1 was made and was approved by your ministry. It was appearing that everything was being done by your ministry but you are holding the NPP management responsible, holding it accountable and demanding explanations. Who kept Prime Minister Nawaz Sharif in the dark? There were advertisements of millions and millions rupees. Shahbaz Sharif had been making tall claims but the project was not on line. Who had kept the PM in the dark and who is responsible?”
KA: “There is a gap of four to five months and it is not being determined as to what exactly is the problem with this plant? It was, however, discovered in the end of last year that the fuel treatment plant is not enough to produce 425MW power. We have kept all the points you are mentioning before the management and would seek answers from them. Whatever are the answers will be conveyed to you transparently. If there is any justification, it will be conveyed to you. And if there is no justification, we will take action against whoever is responsible. There will be two auditors including Ferguson and also the Auditor General. Everything will be completed within a fortnight. You are right to say that our estimates proved wrong.”
SK: I repeat my question. You said whoever is found responsible will be accountable. Are you ready for accountability? Be ready for replying to questions. Your ministry revised the PC-1. You enhanced the cost from Rs32 billion to Rs57 billion. Munawwar Baseer said it was strange why an addition of Rs23 to Rs24 billion was being made. Wasn’t all of this done by you?
Khwaja Asif: You are confusing two things. The first is that we approved the PC-1. Rs58 billion were approved which included interest and also the difference of exchange rate. Everything is included in it. You are right that the contractor should put on tight ropes. We had written letter on the basis of assumptions.
The second thing is that the outsource contract has not been given as yet. The OMI has not been given the outsource contract and the OMI has not been outsourced and present contractor is managing it. We are trying to find a solution to manage it ourselves. We may also call the manufacturers of the machinery – the General Electric. There is usually O&M and maintenance contract, which would be given in a transparent manner.”