LAHORE: Holding the National Transmission and Dispatch Company (NTDC) responsible for the inordinate delay in construction of the transmission line of the Neelum-Jhelum Hydropower Project between 2007 and 2013, an inquiry committee formed by the prime minister has recommended action against seven managing directors for “wilful neglect and complete disregard of the strategic importance of the project”.
The four-member committee constituted by Prime Minister Nawaz Sharif to “identify the causes of delay, planning errors, fix responsibility and suggest a way forward for fast track completion of the project” held that the “NTDC wilfully neglected the project and should be held accountable”.
Despite explicit directives from the Executive Committee of the National Economic Council (Ecnec), work on the transmission line was not commenced between 2008 and 2011. In 2011, the NTDC revised the PC-I prepared in 2005 and changed the scope of work and cost. It also unilaterally changed the debt-equity ratio, which was tantamount to “gross negligence and misconduct”, the inquiry report said. The revised PC-I also included transmission of power from Karot and Azad Pattan hydropower projects.
No plausible explanation, supported by documentary evidence, was given for the delay. “It is, therefore, safe to presume that negligence on the part of management of the NTDC was wilful,” the report said.
Inaction till the revised PC-I was prepared resulted in “substantial overrun and critical time delay”. The cost increased from Rs11 billion in 2005 to Rs22bn in 2011 (the contract was given at Rs25bn).
After the launching of the power project in 2008, work on the transmission line should also have commenced in accordance with an Ecnec directive.
Last year, the NTDC board of directors showed concern over the delay and constituted a committee to “fix responsibility and report within three days”.
But the committee took 58 days and did not fix responsibility as required by its terms of reference. “This demonstrates seriousness of the NTDC (for the project),” the new report said.
In the opinion of the committee, managing directors Amirur Rehman (19-10-07 to 18-11-08), Tariq Qazi (19-11-08 to 02-03-10) and Rasul Khan Mehsud (05-03-10 to 27-06-12) were responsible for the delay.
Mr Mehsud was also held responsible for changing the debt-equity ratio without prior approval of the competent authority. The NTDC management wasted over one and a half years (October 2011 to June 2013) without a justification.
According to the report, the managing directors who did not take a proactive approach since January 2012 include Naveed Ismail, Musaddiq Ahmed Khan, Khalid Hussain Rai and Zargham Eshaq Khan.
The committee said the NTDC had suggested a change in route, dividing the project into two phases and verbally communicated the phase-I cost to be Rs13bn. The first phase would be completed in two years.
The government should provide necessary relaxation and waivers and meet funding needs. It has been recommended that a special project committee, exclusively for implementation, be constituted to ensure timely completion of the project.