PML-N to add 2000MW by resuming work on abandoned power plants

By
Sonia Qadir
-
14
170

Pakistan Muslim League –Nawaz is set to add 2000MW electricity to the national grid in the next nine months by resuming work on two abandoned power projects.

According to details by a senior PML-N leader, this is one part of the strategy to meet the power shortage plaguing the country. “Shahbaz Sharif is engaged in negotiations with a Chinese company to resume work on the two abandoned power generation projects in Nandipur and Chicho-ki-Malian to produce a total of 950MW,” he said.

He said the senior PML-N leadership has already spoken to the Punjab sugar mills owners to produce some 900MW electricity by using bagass and assured them of necessary changes in the legal framework for this purpose. Moreover, Chinese contractors have been informed that the government would take every step to facilitate them only if the two projects are completed without any further delay.

On completion, the Nandipur power project (originally costing $329 million) and Chicho-ki-Malian Combined Cycle Power Plant (costing $354.5 million) was to add to the national grid 425MW and 525MW respectively. The Nandipur project was forecast to be completed by April 2011.

In November 2010, the project was suspended due to lack of payments emanating from a stalemate resulting from the refusal of the Law Ministry to concur with the contract ex-post facto. This took place after the Law Ministry had already approved three drafts of the contract, as well as the format of the sovereign guarantees.

As a result, six consignments were stranded at the Karachi and Bin Qasim ports. The foreign currency loans through the export credit agreements (ECAs) became ineffective. Notice for suspension of work was served by Dongfang Electric Corporation Limited China (DEC) and General Electric (GE) on Pakistan Electric Power Company (Pepco), and they demobilised themselves from the site in Nov 2010.

Almost 400 workers sat idle, waiting for the equipment’s customs clearance. Material was kept in the open air at the port and was thus vulnerable to damage. Its ramifications included non-fulfilments of contractual obligations, prolonged delay in commissioning of the project and accrual of additional financial claims from the contractor for idle charges, demurrage charges and loss sustained by determination and damages occurred at the port.

Some time ago, the PML-N took the matter to the Supreme Court, which constituted a commission of inquiry, which held the law ministry responsible and ruled that a loss of Rs120 billion was caused because of non-completion of the two projects.

The apex court ordered stern action against those named as guilty in the commission’s report, but due to official apathy the inaction continued. As a result, the report became just a useless piece of paper.

For the original report, please see http://www.thenews.com.pk/Todays-News-13-23118-Shahbaz-scrambles-to-bring-2,000MW-on-line-in-nine-months

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14 COMMENTS

    • The PiTI trolls have nothing but to criticise the Government. They want to distract from Pervez Khattak of KPK

  3. How come Shahbaz didn't do anything about it in the last 5 years while the CM ? He could have done his part rather then wasting billions on a bus service.

    • All power crisis due to Sharif brothers spending huge money on motorways, metrobus, numberless flyovers, underpasses in last 30 years and money did nt go to basic needs, ie electricity production necessary for a poor country. We tried to copy highly advanced countries in motorways, flyovers whereas this money cud be spent on electricity production. This s due to Sharifs policies of last 30 yrs. Nation s responsible who supported their flashy projects. Ab maza chakho.
      – See more at: http://www.pakistantoday.mbt.pk/2013/05/27/news/n…

  4. The Sharif brother did not do any thing in last five years because they were not part of the government. For Sharif Brother, Opposition Leader’s position is just for perks and no work. As an opposition, Sharif Brother played Politics and witch hunt in the assembly.

  5. All power crisis due to Sharif brothers spending huge money on motorways, metrobus, numberless flyovers, underpasses in last 30 years and money did nt go to basic needs, ie electricity production necessary for a poor country. We tried to copy highly advanced countries in motorways, flyovers whereas this money cud be spent on electricity production. This s due to Sharifs policies of last 30 yrs. Nation s responsible who supported their flashy projects. Ab maza chakho.

    • I'm not a PPP or PML-N supporter,I don't even live in Pakistan,my question is,what exactly did the PPP do in the last 5 years.No matter how you cut it and slice it,no one has ever done as much damage as the PPP government.

  6. Lazim, you are an idiot, sharif brothers haven't been in power. Without roads, our country would only have tanga for transport. What did zardari do? how has the country advanced?

    • You seem to blind and mindless and dont know how long Sharifs hv been in power from 1985 to 2013.

      • You are totally ignorant of the History of Pakistan! You don't even know that during that period Benazir Bhutto had 2 stunts as PM and then there was a long dark era of dictator Musharraf followed by his NRO-beneficiaries.
        Go and read the history of Pakistan b4 making mindless comments.

  7. PML-N has the most sincere & dedicated Leadership able to deliver Good Governance in Pakistan. All mega projects including Motorways, International airports @ Karachi and Lahore, Chashma Nuclear Power Plant (CHASHNUP), Ghazi Barotha Dam and making Pakistan the 7th Nuclear Power in the world are some of the great achievements of Mian Nawaz Sharif.

    We hope & pray that he and his team works with the same enthusiasm, despite distracting trolls on social media, on the day of Youm-e-Takbeeer.

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