Senate body seeks oversight of foreign-aid projects

Committee says govt institutions manipulate tenders, financial requirements

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ISLAMABAD:

The Senate Standing Committee on Economic Affairs Division has directed the appointment of a representative to monitor all foreign-funded projects, stating that various government institutions manipulate tenders and financial requirements, said the committee on Monday.

According to details, the meeting, chaired by Senator Saifullah Abro, reviewed the Chakdara-Chitral Road (N-45) project. National Highway Authority (NHA) officials informed the committee that a $93 million loan is being obtained from the Asian Development Bank (ADB) for the 48-kilometre Kalakot-Chitral section.

Abro questioned who the project consultant was. NHA officials said the consultant comprised a Korean company and Babar Khan. When asked where the consultant was, officials replied that the consultant had been called to GHQ. Abro remarked that such names are deliberately cited to mislead the committee.

The committee reiterated that an Economic Affairs Division representative should monitor all foreign-funded projects, as various government bodies alter financial requirements after issuing tenders.

During the meeting, the chairman asked about the CEO of GENCO Holding Company. The additional secretary of the Power Division said the government is winding up the company and that the CEO of Jamshoro Power Company was present. Abro said only GENCO Holding Company could provide the required answers.Abro criticised the privatisation of government companies, saying they could have been revived easily. He said First Women Bank was sold for Rs4 billion, whereas he had offered Rs12 billion. He also noted that the Lakhra coal power plant and its mine are being auctioned.

Referring to the Guddu Thermal Power Plant, Abro said the GT-14 unit was damaged despite $50 million being paid annually to GE for maintenance. After the damage, the government did not recover $32 million from GE. Despite an inquiry report, the Power Division neither took action against the officers involved nor made recovery efforts; instead, the officers were promoted.

Power Division officials told the committee that the Jamshoro Power Plant has a capacity of 660MW and can use local coal. The ADB provided a loan of $635 million for the project, though it was originally supposed to receive $1.2 billion.

Abro alleged that pressure was exerted to cap the project at 660MW. Had it been implemented at full capacity of 1,320MW, corruption in private-sector projects would have been exposed. He further said that all LNG-based power plants were installed in Punjab, and instead of converting old plants to LNG, new ones were installed. Although old power plants were auctioned, payments have yet to be recovered.