$85m Nandipur power plant machinery rusts away at Karachi Port

 Most parts of the $85 million Nandipur power plant, which has been braving salty sea winds at Karachi Port for the last couple of years, have been either damaged by an unfriendly environment or taken away by thieves.

The formation of a fact-finding commission is said to be on the cards to ascertain the extent of damages caused to the costly but ill-treated power plant and fix the responsibility as soon as the machinery reaches its destination in Nundipur Colony of Gujranwala, Punjab.

Official sources confirmed to Pakistan Today that inspection of the 425 megawatts ill-fated project was underway by the Chinese consultants from M/s Dongfang Electric Corporation Limited (DECL) and the bank which had finally cleared Bill of Lading for the machinery weighing at least 17,000 tonnes.

A team comprising Chinese engineers, officials of Water and Power Distribution Authority (WAPDA) and the Punjab government visited the KarachiPort on Tuesday to inspect the leftover machinery, according to well-placed sources.

State media like PTV also accompanied the team, they added.

“Chinese engineers noted that most parts of the plant machinery had been damaged,” the sources said.

Officials privy to the matter confirmed that the plant was partly damaged, saying the port city’s humid climate, specially the salty sea winds, had rusted the machinery.

“The climate of Karachi, you know, damages everything made from iron,” said an official while explaining what in fact had done the damage.

Moreover, some of the plant’s movable parts like wires and iron plates were said to have been stolen by unidentified thieves amid, what the sources claimed, loose security arrangements at the country’s largest seaport.

In March 2011, unidentified persons allegedly in connivance with some port security personnel had conveniently driven away a huge quantity of precious metals belonging to the State Bank of Pakistan in two dumper trucks in what was then called the “biggest theft” incident at the KarachiPort

The Nandipur power plant’s machinery is scattered across the East and West wharves of KarachiPort. “Some parts of the plant are lying at Berth Number 4 of East Wharf, some at Berth Number 18 and some parts are lying near the office of Deputy Traffic Manger at the WestWharf in open,” said the sources.

The damage control exercise, however, has begun with the government of energy-scarce Punjab taking special interest in getting the power generation plant shifted to the project site at the earliest. Official sources privy to the matter said work was underway to ensure a speedy transportation of 35 percent leftover parts of the machinery from the KarachiPort.

Ms Sack International Transport, a logistic firm hired for the transportation job, is said to have started its assessment and would be able to start shifting the heavy machinery after completion of technical and legal modalities.

“The plant presently is on the packing stage,” an official said, adding, “The shifting would (however) take two to three months.”

Once shifted to the project site, a fact-finding commission or committee would be constituted by the federal government to ascertain the extent of losses incurred and hold accountable those responsible for the maltreatment of the much-needed project.

“The project proponents and the Ministry of Law seem to be at fault,” commented an observer well-acquainted with the ill-fated project.

Babar Awan, former federal law minister and estranged PPP leader, had reportedly vetoed in July 2011 an ECC-backed proposal from Ministry of Water and Power to waive the applicable port charges, then amounting to about Rs 750 million.

For such waivers to be granted, the consent of Law Division must be sought which, however, was denied by Awan for reasons best known to him.

If officials on the Karachi Port Trust’s board are to be believed, the PML-N led federal government would soon order the much-anticipated waiver of Rs 1 billion port demurrages the KPT, the operator of KarachiPort, claims against the Chinese contractors of the stranded plant.

“The demurrage amounts to Rs 1 billion,” said a board member, adding that “we would comply whatever orders we receive from the government”.

Even if the penalty is not abolished, the ultimate looser would be none other than the government of Pakistan which would helplessly see the DECL, as per standard practice, include the demurrages paid in the project cost.

The overrun project cost is reported to have ballooned by over 100 percent or Rs 35 billion to Rs 58 billion from its earlier cost of Rs 23 billion.