The conversion of the Nandipur power plant to gas has caused an increase of around Rs 7 billion to the total cost, despite the plant failing to generate electricity as per its 425 mega-watt capacity, it has been reliably learnt.
Official sources in the power ministry informed Pakistan Today that around Rs 4.5 billion will be spent on the gas pipeline while another Rs 2.5 billion will be used to modify the plant’s machinery which currently runs on treated diesel and furnace oil, bringing the total cost of the project to Rs 65 billion.
“The conversion process has started and will enable the generation of 525MW of electricity, and the process is likely to be completed by the start of May,” the sources said.
Interestingly, the National Electric Power Regulatory Authority (NEPRA) has already rejected a plea to approve the Rs 58 billion cost of the power project and has only approved Rs 42 billion. NEPRA officials say that consumers could not be made to unfairly bear the price hike and declared the increase in cost a fault of the government.
Sources also say that the ministry of water and power is all set to once again approach NEPRA and have the new price approved and have it passed on to consumers.” Now it is up to NEPRA either to approve the increase in cost or reject the likely plea of the ministry, the sources added.
Prime Minister Nawaz Sharif inaugurated the first turbine of the project in May 2014 but the plant shut down after five days. It achieved commercial operation in August 2015, but the plant became dysfunctional in September of 2015.
Although the construction of the Nandipur power plant was officially complete, the power plant could not generate electricity at full capacity due to a fault in the furnace oil treatment plant (FOTP). NEPRA took serious notice of the low power generation, and Chinese engineers were appointed to fix the fault.
Once complete, the Nandipur power plant will be one of the most costly power plants to ever be constructed in the history of the country and has become a point of major embarrassment for the ruling PML-N government. The Northern Power Generation Company Limited (NPGCL) has already informed NEPRA that the project will likely cause losses worth billions of rupees to the national exchequer even if made operational at full capacity.
The ministry of water and power has communicated three major technical problems with the project: the import of a low capacity furnace oil treatment plant, flaws in the long-term outsourcing contract for operation and maintenance, and short-term contracts awarded to engineering, procurement, and construction contractors.
Earlier, a Senate panel directed the National Accountability Bureau (NAB) to complete an investigation within two months of the losses incurred to the national exchequer due to the increase in the cost of the power project and to file criminal cases against all responsible.
However, the inquiry has faced delays because of the non-cooperation of the ministries of water and power and finance regarding the calculation of actual loss incurred to the national kitty and is yet to conclude or report its findings.
