SC seeks fresh details of RPPs from W&P ministry

The Supreme Court of Pakistan has directed Ministry ofWater and Power to furnish details of all rental power projects and the details of what the public is being charged for electricity production, adding that the details about the production of electricity from these rental project, during last two months also be presented before the court today (Friday).

During case proceedings on Thursday, Chief Justice of Pakistan Iftikhar Muhammad Chaudhry sought details of how much electricity the rental power plants were supposed to provide, how much they were producing and what the government has paid them so far.

A two-member bench of SC comprising Chief Justice Iftikhar Muhammad Chaudhry and Justice Khilji Arif Hussain heard the suo motu notice and plea of Federal Minister for Housing and Works Faisal Saleh Hayat and PML-N MNA Khawaja Muhammad Asif to probe into RPPs affairs.

PML-Q leader Faisal Saleh Hayat accused the government of running the rental power projects for the sole purpose of money making.
Hayat said that the auditor general’s report has revealed corruption worth Rs 50 billion in the rental power projects.

He said that the Asian Development Bank (ADB) had also pointed out corruption in the scheme, adding that the bank’s report is a charge sheet against the water and power minister Raja Pervez Ashraf.
The Chief justice enquired as to why no action was taken if the ADB report mentioned those responsible.

Federal Minister Faisal Saleh Hayat told the apex court that 6000MW electricity could have been received from the independent power producers (IPPs) but the government did not take benefit of it. The minister also termed the ADB report on RPP a charge sheet against water and power minister.

The minister held the government responsible for criminal negligence in this case. He pointed out that in May 2008 Pakistan Electric Power Company Limited (PEPCO) had capacity of 19500MW adding that 1700MW more was to be added by three IPPs who got license.
Saleh Hayat said that IPPs may generate 6,000 MW power but government is incompetent.

Faisal Saleh Hayat, while arguing, said that the country had to face load shedding from 18 to 22 hours; when the people come to the streets, load shedding was finished.

He raised the question that from where this electric power came into being. The government started work on power projects in hurry without keeping in view it consequences, adding that the Ministry of Water and Power misguided the federal cabinet.

Justice Chaudhry remarked, “You are a minister in the cabinet, so you should raise the issue in the cabinet.” At this Faisal Hayat said that he has some compulsions, due to which, he can’t not take a bold step.

He vowed that he would expose all the corruption in the next session of the cabinet.

Faisal further said that agreements and contracts with different companies were violation of PEPRA rules, adding that government has given five projects Walter Company whose project was failed in 2006.

He said that 18 billion rupees have been paid to RPPs in advance and many projects have not been started yet. He said that rent is being paid to the projects but there is no production of electricity.

Faisal said that ministry of water and power has violated the orders of federal cabinet, adding that NEPRA is also involved in violation of rules. Old machinery was imported by these companies, which is about 25 years old, he added.

Meanwhile, an official of PEPCO admitted that there was no formal inspection of these projects.

Chief justice intimated that SC is in search of expert who may submit detailed report after examining the machinery imported by the companies.

The SC later sought details regarding the electricity produced by RPPs, rent, tariff and adjourned the hearing till today (Friday). SANA