MEEOW ...... FRIENDS ..... Where are we heading ? Are thee Past people only to be blamed fairly and squarely ? At what level is the PMN (N) team slipping ? Are we going forward on reverse slope ? The Government is gifted with some competent people or court jesters as usual ? The last three experiences of PML(N) are not very bright ? With friends like NAJAM SETHI, you don’t need enemies ? The country does not need Bullet trains or electricity from INDIA . Please ..... Can the Present Government set a personnel example of selflessness, control your family and finish kinship in PML (N)......? Can They Finish all your property in U.K, S.A and other countries...... ? Can They Make Merit Criteria of Appointments and Governance.......? Learn from THEIR past mistakes, They will NOT avoid repeating them...... ? The PML-N government has revived the 425 MW project with a monumental increase in the cost revised upwards to $570million from $329 million. As a citizen of Pakistan I am extremely pained to see that corruption in the energy sector continues unabated. Most recently, the now famous case of the 425 MW Nandipur Power Project delays, in which sue Moto action has also been taken by the Honorable Supreme Court, is again being used by the mafia to make windfall gains. Does this observation go in favour of PAKISTAN ........... ? Narrating the summary of Nandipur power project scam in the petition, Mr Baseer told that:- i) Provisional Letter of Intent (LOI) issued by MD Pepco and accepted by DEC on the 3rd of December, 2007. Discounted EPC cost agreed with DEC was $329 Million. ii) Total Project Cost estimated at $385 Million to include Insurance, Interest During Construction (IDC), and miscellaneous civil works (costing sheet attached, Annexure . iii) Project levelised Tariff for 25 years was 10.821 cts /kwh vs. equivalent IPPs (Atlas, Nishat Power, Nishat Chunian etc.) at about 12.125 cts /kwh. Net Tariff lower by 1.304 cts /kwh at FO cost of Rs25,597/ton in December 2007. iv) Nandipur 425 MW Power Project is the lowest cost project as even compared to IPPs set-up in 1995 – 1998 under PPP government. (news report attached, Annexure C) v) Full contract was signed in January 2008 by Mr Munawar B Ahmad, MD Pepco & Mr Loa Zhigung President DEC, for agreed EPC cost of $329 Million. vi) Financing arranged by Pepco through Co-FACE (French credit), Sino Sure (Chinese), and BOP (Rupees) under overall Syndicate headed by BNP Paribas (French Bank). vii) DEC mobilization and construction started in October 2008. GE Turbines delivered and installed at site and paid for under financing arrangements. viii) HRSG; Heat Recovery Steam Generator Steam Turbine, Balance of plant equipment shipped by DEC in seven (7) batches and paid for, and now still lying uncleared at KPT/PQA port since August 2010. ix) The Chinese Contractor, DEC on August 20 wrote to Mr Yusuf Raza Gilani, the Ex Prime Minister (letter attached, Annexure D) requesting the GOP’s assistance in issuance of Ministry of Law legal opinion and release of shipment and balance payments. x) There was apparently no response from PM’s Secretariat or Ministry of Law. Even the Chinese Ambassador wrote to the Prime Minister, Pepco etc, but no affirmative action was taken. xi) Finally in September 2012, DEC was forced to de-mobilize its crew of about 400 construction and engineering workers and issued letter of contract cancellation. xii) For past 2 years and 10 months, a simple matter of issuance of a legal opinion by Ministry of Law, re-affirming that the GOP Sovereign Guarantee for the overseas loans (Co-Face and Sino Sure) was valid has not been issued. xiii) The PPP government clearly and intentionally delayed the matter and issuance of the Ministry of Law letters for want of commission by the concerned. Even when the then Minister of Water & Power, Raja Pervaiz Ashraf was approached on the matter he maintained that there was nothing he could do on the matter. xiv) The position now is that nearly 100% of plant, machinery and equipment has been shipped and paid for under the financing arrangements, and is either at the Nandipur site or the KPT/PQA ports. xv) About 50% work at site, including installation of three brand new GE Frame nine (9) turbines has been completed. Balance work, after delivery of equipment from port and re-mobilization of the Chinese Contractor, DEC, can be completed within one (1) year. xvi) DEC has only demanded an extra $40 million for re-mobilization, and increase in construction costs. This would result in the project cost escalating to $425 million or thereof. (news report attached, Annexure F). xvii) However a New Mafia is at work now, and many reports, project escalation estimates have been spread in the media, stating that the project has escalated to an astounding $574 Million (news reports attached, Annexure G). xviii) The question is where did this extra cost of about $149 Million come from ? There are also reports of plans by PML-N to privatize the Nandipur Power Plant and let the “Chosen” party arrange for the “extra costs”. Since a new revised cost has been “Approved” by the ECC. xix) The revised PC-1 by Pepco/Ministry of Water & Power for Rs57 Billion ($570 Million) is under a well thought out scam to cheat the public exchequer of $149 Million, the benefit of which will go to a “select private sector party” xx) The reality is that all equipment, machinery etc is at site or at the port and is paid for. The only increase demanded by DEC is $40 Million. Plus there could be an increase in extended insurance for 2-3 years, plus IDC. This could add up to say another $25 Million at the most, bringing the cost to $425 m + $25m = $450 Million, certainly not $574 Million. AND ............. According to the Punjab government, 30 Billion rupees is the amount of money spent on the Lahore Metro Bus Service. Punjab infrastructure development is Rs63 Billion which means that 50% or half of the development budget of Punjab was spent in Lahore. Compare this Rs30 Billion to the Rs16.5 Billion allocated to the health sector for the entire province of Punjab. Can we Arrest further Economic Decline in this manner ....... ?
Posted on: Sat, 13 Jul 2013 08:18:13 +0000
Trending Topics
Recently Viewed Topics
© 2015