Pakistan inks dubious contract with international company worth 800 million

Pakistan inks dubious contract with international company worth 800 million

The Senate Standing Committee on Power, in a recent development, hasleveled accusations against several key figures in a contentious contractissue. Specifically, they have implicated Country Director of the WorldBank, Najy Benhassine, and Secretary of Power, Rashid Mahmood Langrial, inan alleged conspiracy with NTDC regarding the award of a questionablecontract to the German firm M/s GOPA Intec.

This contract pertains to the construction of a 765 kV double circuittransmission line, spanning from the Dasu Hydropower station to theIslamabad I/C Station, with an estimated value of $800 million.Furthermore, it extends to other contracts within the scope of this project.

Presiding over this matter, Senator Saifullah Abro chaired the Committee’sproceedings. The Committee has since issued a directive to the PowerDivision and NTDC, requesting the final viewpoint of their respectiveboards, which have already passed on the contract in question to theProcurement Committee. Notably, this committee will be led by a Professorfrom the National Institute of Management Sciences, further emphasizing thegravity of the situation.

Remarkably, the Committee expressed its displeasure at the absence ofEnergy Minister Muhammad Ali, Secretary Power Division Rashid MahmoodLangrial, and members of the NEPRA Authority during their session.Consequently, they decided to issue summons to the entire staff of theNEPRA Authority to ensure their presence at the next meeting. The Committeealso shared that the Power Division had reached out to the Country Directorof the World Bank, seeking their perspective on the Dasu transmission lineproject.

In their correspondence with the World Bank, the Power Division raisedconcerns about the contract award process for Lot-1 of the DasuTransmission Line project. They emphasized that this matter had been underdiscussion within the Senate Standing Committee on Power for six months.Following extensive deliberations, the Committee, during a meeting held onAugust 4, 2023, determined that the award of Lot-1 of DTLP constituted amis-procurement orchestrated by NTDC and Consultant M/s GOPA Intec.

Consequently, the Committee has recommended re-tendering of Lot-1. ThePower Division has also sought the World Bank’s assurance that theprocurement process adhered strictly to World Bank guidelines and that nodeviations occurred that might lead to mis-procurement.