Govt made RPPs deals in haste: CJ

ISLAMABAD - The Supreme Court on Monday directed the Pepco and the Ministry of Water and Power to provide details of per unit rate and the performance of the Independent Power Producers (IPPs). Ejaz Babar, Director Pepco, on the instruction of the court submitted a comprehensive statement of the Rental Power Project (RPPs). The Chief Justice after the examination of the statement said that criminal negligence was committed in awarding RPPs to the companies, as the projects were given in haste. He said why have the government experts ignored the facts of gas shortage and increase in fuel prices, due to which many companies are failed to generate power to its full capacity. Justice Khilji Arif Hussain said that the electricity produced from Karkey cost Rs 44 per unit. Khawaja Tariq Rahim, representing the Ministry of Water and Power, defended Karkey high rate per unit saying the Karkey has not been given letter of credit for fuel. He added if the company generates power more than 151MW, which is producing presently, would cost it less and the price per unit would come down to Rs22 per unit. He said due to economic slowdown the fuel could not be provided to the company so that they could generate electricity to its full capacity of 231MW. Justice Khilji said when the government was aware that it could provide fuel for producing only 51MW then why had it contracted with Karkey for 231MW generation? The Chief Justice asked Tariq Rahim it was not always good to defend, but the government has to apprise the court why was so much concession granted to Karkey. It is okay that Gardish (Turkish company) is friend of Pakistan, but we have to safeguard the interest of Pakistan, the CJP said. He said that the money was paid to Karkey in advance, while the cabinet gave its approval after three months. Earlier, Counsel for Karkey RPPs, Akram Sheikh, while concluding his arguments said that the nine-month delay in operation of Karkey took place as the standby letter of credit was issued late. He said that for him interest of Pakistan always comes first. Upon that Justice Khilji Arif Hussain remarked that everyone claims they love Pakistan very much, but practically do nothing. The learned counsel pleaded the term of contract was not complied by the Pepco, Genco and the Federation. He complained that they were generating electricity and also paying the penalty, adding they were getting amount from the government of the units they are producing, while they have complied with the each clause of the integrity pact. He also said that Nepra granted the approval of the tariff. Raja Pervaiz Ashraf, former minister, said that the Additional Secretary Ministry of Water and Power had conveyed him the court message, therefore, he had appeared before the bench. He said that he heard the speeches of petitioners and needs time to file the reply. The Chief Justice corrected him saying it was not the National Assembly but the apex court where leg points are discussed. The CJP asked him that the load of the RPPs is on you as these were signed during your tenure as minister. Shahid Hamid, counsel for Walter International, said that the facts Khawaja Asif described in his petition, are wrong, therefore, please ignore them. He said that the contract with Alstone, which had signed contract on September 2006, was approved by the cabinet. He said the companys operational period was reduced from 36 months to 30 months. He said on 2nd July, 2010 Wapda wrote them a letter saying it was not interested in the operation of the company. Regarding the Gudo Power Project, Shahid Hamid informed that it signed contract with Pepco to produce 110MW on 26-02-2008. He said that the Nepra has cleared the machinery it brought to Pakistan, but when the machinery was about to unpack on the site of the project they were told that there is shortage of gas in the country, therefore, not to start the operation. He said there was no whatsoever claim against the company, but it had paid back money to the Ministry with interest. The case was adjourned till today.

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