GE found responsible for Guddu Power Plant accident

ISLAMABAD: An inquiry committee constituted for investigating the countrywide blackout that struck January 9, 2021, last year due to an accident at Guddu Power Plant, has found M/S General Electric (GE) grossly negligent under the Contractual Service Agreement (CSA) and, therefore, primarily responsible for the accident and consequent losses.

Pakistan suffered a major countrywide power shutdown on January 9, 2021 after the National Transmission and Despatch Company (NTDC) power system encountered a major breakdown due to the tripping of the Guddu Thermal Power Plant. This caused tripping of high transmission nationwide and brought down the system frequency from 50 to zero in less than one second. Under the agreement, GE is responsible for a scheduled inspection, supply of initial spares, diagnostics and online performance monitoring, O&M advisory services, asset performance management and operational excellence system as they are included in the scope of covered maintenance.

The investigations found that the unit became non-functional due to damage to some internal parts.

Official documents available with The News revealed that the Federal Secretary Ministry of Energy (Power Division) has now instructed through official communication on March 31, 2022, to take immediate action including Central Power Generation Company Limited (CPGCL), under close supervision of the Government Holding Company Limited (GHCL), must approach M/S General Electric to compensate for the loss of Rs10.8 billion plus cost of repair and maintenance involved in the restoration of unit GT-14 of 747 MW Combined Cycle Power Plant (CCPP), Guddu.

If General Electric does not compensate for losses, the relevant authorities may legally and prudently evaluate options of “black-listing” such services of M/S GE and referring the case to NAB or FIA after consideration and approval of boards of directors (BODs) of CPGCL and GHCL.

The Chief Executive Officer (CEO) of CPGCL is further required to complete the E&D proceedings against the-then Chief Engineer/TD and Plant Management forthwith with exemplary punishment under rules to ensure that necessary SOPs are put in place. The CEO of Government Holding Company Limited (GHCL) has been directed to supervise necessary action at the earliest. Besides, he must ensure adequate insurance cover for the plant is in place for future eventualities.

The Federal Secretary of Energy (Power Division) also directed suspending CEO Government Holding Company Limited with immediate effect and its Board of Directors advised holding an E&D inquiry against him for failing to supervise and monitor the operation at CPGCL and failure to hold a proper inquiry, recovering claim from General Electric etc for actions leading to possible loss to a public sector plant.

Besides, the Government Holding Company Limited was instructed to immediately take stock of operation at all GENCOs to identify shortcomings and get the deficiencies removed to secure power plants from any eventualities.

Furthermore, the federal secretary has also sought an explanation while suggesting replacing the Board of Directors of CPGCL for their failure to take necessary action and hold immediate proper inquiry which was done now after a year of the incident. The Board has been given 45 days to explain its position otherwise the action will be taken against it, the directive warned.