PTBP Web Desk
The Chairman of the Senate Standing Committee on Economic Affairs, Senator Saifullah Abro, has urged the Minister for Power, Sardar Awais Leghari, to take immediate action against officials of the National Transmission and Despatch Company (NTDC) for their alleged involvement in financial irregularities. The issue pertains to the 765kV Grid Station at Islamabad West (Lot-IV), a project financed by the World Bank.
In his formal correspondence with the Power Minister, Senator Abro underscored the importance of parliamentary oversight in ensuring transparency and accountability in government functions. He cited the Senate’s Rules of Procedure, highlighting the crucial role of Standing Committees as the “eyes, ears, hands, and brain” of Parliament.
The 765kV Grid Station project at Islamabad West was launched with financial backing from the World Bank. The project’s primary aim is to enhance the reliability of power distribution across the region. However, serious concerns have been raised regarding the handling of finances.
According to Senator Abro, the contract for this project was awarded to M/s NWEPDI-TBEA (JV), the lowest bidder, with an initial bid price of $202 million (approximately Rs. 35 billion). The contract was finalized at Rs. 33.6 billion. However, discrepancies arose when an additional Rs. 1.282 billion was included as taxes in the contract price. This amount, which was excluded during the bid opening phase, was added later upon signing the agreement, contrary to the provisions of the bidding documents.
The Senate Standing Committee on Economic Affairs conducted a detailed review of the project’s financial aspects. It found that the NTDC’s Board of Directors and officials deviated from the approved bidding process by including the Rs. 1.282 billion tax amount post-bid approval. This move violated the NTDC Board’s March 16, 2024, approval and the letter of acceptance issued on March 27, 2024.
During a committee meeting held on December 24, 2024, NTDC officials, including the Managing Director and the former Chief Engineer/Project Director, admitted that adding this tax amount was a mistake. The Committee deemed this irregularity a serious lapse, resulting in a significant financial loss to the national exchequer.
Senator Abro stressed the need for immediate corrective measures to address these financial discrepancies. He urged the Power Minister to:
- Launch a comprehensive investigation into the matter.
- Ensure the recovery of the Rs. 1.282 billion from the contractor.
- Hold accountable the officials and entities responsible for the irregularities.
- Strengthen mechanisms to ensure transparency in foreign-funded projects, particularly during the tendering and implementation phases.
“It is imperative to address these issues to uphold the principles of good governance and prevent further damage to national infrastructure,” Senator Abro remarked.
The 765kV Grid Station at Islamabad West is strategically important for enhancing the power sector’s capacity and reliability. However, the financial mismanagement surrounding this project has raised questions about the efficiency and transparency of NTDC and its handling of foreign-funded projects.
Senator Abro’s concerns resonate with growing calls for accountability in Pakistan’s power sector, which has faced repeated challenges, including delays in project completion, cost overruns, and inefficiencies. The additional Rs. 1.282 billion added to the contract represents a critical lapse that must be addressed to restore public trust in government institutions.
This incident also underscores the need for robust oversight mechanisms to prevent financial mismanagement in large-scale infrastructure projects. The World Bank’s involvement further highlights the importance of adhering to international best practices in transparency and accountability. Failure to do so could jeopardize future collaborations with multilateral development partners.
