The RPP contracts were signed between 2006-2008, guaranteeing contractors payments based on their designed capacity, irrespective of depreciation factor based and almost no penalties in case of breach of contract or misstatement of specifications. These non-transparent contracts should have been vetted by technical experts in WAPDA, PEPCO etc for evaluation of their present generation capacity and delivery to national greed for distribution within specified time frame that should have been incorporated in contracts. Unfortunately dominant decision making role assumed by non-technical political elite and civil bureaucracy seems to undermine what should have been purely a decision by technical specialists working closely with legal experts before agreement is signed, sealed and delivered. Similar agreements have been signed for LNG etc.

The Karkey RPP contract is one such agreement which was grossly mishandled by Federal government and cancelled by SC, with net result that Foreign exchange starved Pakistan was fined $700 Milion with $5.2 Million interest/ month starting from September 2012 in addition to $10-20 Million paid to foreign lawyers. Our only chance to save this country from big penalty was for state institutions like NAB, FIA etc to prove that corruption was involved in signing these contracts. But unfortunately NAB starting from days of Khalid Maqbool to Fasih and Qamar Chaudhry has been instrumental in protecting big fish involved in bleeding this unfortunate country from within and not a single crook has ever been punished. There could have been no bigger facilitation for corruption than Plea Bargain deal, where you pay paltry sum robbed from state, in return for certifying your integrity. One hopes that NAB reopens such cases to punish culprits enabling state to file an appeal. The Million Dollar question is- Will NAB have spine and will to do that so? Failing which Pakistan will continue to borrow and pay heavy penalties for breach of contracts which should never have been signed.


Lahore, June 20.