ISLAMABAD: The Power Division has initiated a fact-finding inquiry against the National Transmission and Despatch Company (NTDC) for the removal of development schemes, including the Electricity Distribution Efficiency Improvement Project (EDEIP), from the Public Sector Development Program (PSDP). This deletion has stalled consultant salaries and delayed new consultancy contracts since the start of the financial year, sources revealed.
Special Secretary Power Division, Arshad Majeed Mohmand, has been appointed as the inquiry officer under a directive issued on November 13, 2024. He issued multiple warnings to NTDC Managing Director Waseem Younas to provide relevant records for the inquiry, including budgetary demands for FY 2024-2025. Despite repeated reminders, compliance was delayed until December 20, 2024.
The inquiry will also address broader delays in hiring Project Implementation & Management Support Consultants (PIMSCs), critical for finalizing major procurements for power distribution companies (Discos). Secretary Power Division, Dr. Fakhar-e-Alam Irfan, expressed concern over prolonged delays and frequent staff turnover in Discos, instructing expedited onboarding of PIMSCs.
The Economic Affairs Division (EAD) has identified additional hurdles, including delayed procurement of Market Reform Consultants and potential revisions to project plans. Minister for Economic Affairs Ahad Khan Cheema has directed the Power Division to resolve these issues permanently and present credible timelines for fund utilization.
The government has also sought an additional $50 million in financing from the World Bank to support the rollout of the Asset Performance Management System at PESCO and HESCO. The World Bank has flagged significant implementation delays in the EDEIP, with only 3.6% of funds disbursed three years into the project.
The Power Division has committed to delegating more decision-making authority to Disco CEOs and sharing timelines for appointing a new CEO for MEPCO. Meanwhile, the World Bank continues to press for corrective measures to address bottlenecks and accelerate progress on efficiency improvements in electricity distribution.
Story by Mushtaq Ghumman
