Senate body chairman opposes extension in Kapco contract

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2023-10-18T06:56:22+05:00 Fawad Yousafzai

ISLAMABAD-Senate Standing Committee on Power Chairman Saifullah Abro has said that the contract of Kot Addu Power Company (KAPCO) is expired and it should not be further extended. While presiding over the meeting of the Senate Standing Committee on Power, Senator Saifullah Abro said that new power plants have been installed in the country and they should be operated instead of the expensive KAPCO plants.
He alleged that Waseem Mukhtar was appointed as chairman National Electric Power Regulatory Authority (Nepra) to extend the contract. Nepra Chairman does not come to our meeting for this reason, Abro added. He asked official of the Power Division not to further abuse the country and the nation. The committee directed Additional Secretary Power to give a detailed briefing to the committee on KAPCO issue in the next meeting. After completion of 25 years life by the KAPCO power plants, the company has approached NEPRA and once again sought a reference tariff from Rs 28.80 per unit to Rs 77.31 per unit for its various power plants. KAPCOs 25 years Power Purchase Agreement expired in June 2021, however it was extended through settlement till October 2022. Similarly, the generation license of the company expired on September 21,2021, however, it was also extended till 21st September, 2024.The total capacity of the KAPCO plants is 1600MW,but the derated capacity is 1345MW.
The Senate committee expressed reservations on the content of the report shared with the Committee which also questioned the authority of the Committee to pass directions to the Board. The Committee members were of the view that derogatory language has been used by the Members of BoD, NTDC for the members of Senate Standing Committee on Power, which is a breach of privilege of Committee.
The Committee unanimously decided that it has breached the privilege of the Committee, hence, matter should be submitted to Senate chairman for referring the matter to Senate Committee on Rules of Procedure and Privileges. The Committee also summoned the Board, NTDC in the next meeting to explain its position regarding the report and non-implementation of the committee’s recommendation. While taking briefing by MD, NESPAK on ADB project ACSR Bunting Conductor LoT -II A, the chairman Committee raised objection and said that in the previous meeting the committee recommended to share the entire correspondence of the project with NTDC & ADB, to which the Committee was apprised that a fire incident in September, 2017 took place and all files/record of EDB have been burnt to which the Committee expressed utter suspicion and recommended Power Division to constitute a Ministerial Committee and appoint an officer not less than DS level for further investigation of the project.
The Committee recommended NESPAK to re-evaluate the tender process of ACSR Bunting Conductor and bring clarity within 2 weeks’ time. Regarding the matter of implementation of committee’s recommendation to produce the recording of the Procurement Committee, NTDC in the case of mis-procurement of 765kV double circuit transmission line from Dasu Hydro Power Station to Islamabad, the ministry informed that the audio-recording of the Procurement Committee meeting could not be obtained as Chairman, Board NTDC has resigned and members of the BoD, NTDC have advised Company Secretary, NTDC to take legal opinion on it. It was further told that a report prepared by the Board, NTDC was also presented which stated that a few errors and discrepancies are found in the project, however, they are not enough to declare the entire tender process as a mis-procurement.
Senator Bahramand Khan Tangi raised the issue of increased loadshedding even after 100 percent recovery from the district Tangi. The Ministry further apprised that tomorrow the Mardan Model for “zero theft zero loadshedding” is being inaugurated and invited the members of the Committee to attend and take briefing on the new model. Senator Tangi suggested Power Division to hold meetings with the local police and the judiciary for a strengthening collaboration in this regard.

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