SC objects to RPP bidding

ISLAMABAD
The Supreme Court on Tuesday directed the Water and Power Ministry to submit a complete record of rental power plants (RPPs) contracts by October 28.
The bench comprising Chief Justice of Pakistan Iftikhar Muhammad Chaudhry, Justice Ghulam Rabbani and Justice Khalilur Rehman Ramday, asked the ministry to submit the record of RPPs’ biddings, determination of power tariff and enhanced demand for power generation until the next hearing. The court noted that the award of RPPs contracts was against policy guidelines.
The chief justice asked the lawyer for the Water and Power Ministry, Khawaja Tariq Rahim, to explain who had floated the idea of RPPs? He said the court wanted to know whether it was a part of the present policy or an unsuccessful policy of 2006.
The chief justice said there was no martial law in the country now and an elected government was deciding all the issues in parliament. He said it was the constitutional duty of the court to ensure implementation of fundamental rights keeping aside the consequences whatever they might be. Rahim denied allegations that the government had showed power shortfall just to justify setting up of the RPPs. He said the projects had started in 2006 when the bids had been invited but no one came forward.
He contended that when the government went for the RPPs there was a power shortfall of 4,000MW with the demand increasing by eight percent per year. He said a cabinet meeting was held on March 27, 2008 to consider the generation of 2,200MW of power through two packages: the first included generation of 1,000MW power through Independent Power Producers and the second with a cumulative capacity of 200MW of power production through the RPPs.
He said a representative of the National Electric Power Regulatory Authority (NEPRA) was present during the cabinet meeting. To a court query, he said power tariff could be determined after receipt of the biddings. The chief justice said action should be taken against all those involved in alleged corruption in the RPPs contracts. He said Article 9 had been violated in the case.
The hearing was adjourned until October 28.