ISLAMABAD: The Senate Standing Committee on Economic Affairs has ordered an inquiry into the nearly five-year delay in completing the first 660 MW unit of the 1320 MW Jamshoro Power Plant. Work on the project, which began in 2014, was initially scheduled for completion in 2019 but is now expected to achieve its Commercial Operation Date (COD) later this month.
Chairing the meeting, Senator Saif Ullah Abro noted that the project’s cost has escalated to Rs 1.74 billion ($680 million). The Committee attributed the delay to inefficiencies in the Power Division and Genco Holding Company Limited (GHCL).
The Asian Development Bank (ADB) financed the unit, but it remains unclear whether the second unit will proceed. The Committee also directed a separate inquiry into the delayed Guddu 747 power plant, where liabilities have doubled to over Rs 10 billion due to delays.
Accountability and Oversight
Special Secretary of Economic Affairs Muhammad Humair Karim recommended holding the Power Division accountable for the delays. Meanwhile, GHCL’s CEO cited issues with faulty water pumps, transmission lines, and reduced electricity demand as contributing factors. The Committee pressed for financial penalties on contractors for delays and suggested including local arbitration clauses in future agreements to avoid costly foreign penalties.
Ongoing Projects and Concerns
The Committee reviewed 16 ongoing power sector projects, funded by ADB, World Bank, and Islamic Development Bank, among others. Senator Abro criticized Pakistan’s reliance on loans and called for stricter oversight of project timelines and fund utilization.
Sindh Solar Energy Project
The Committee also examined the Sindh Solar Energy Project, funded by the World Bank, which aims to solarize government buildings and distribute 2 million solar units to underprivileged families. Concerns were raised about beneficiary selection criteria, and the Committee recommended prioritizing rural areas of Sindh and providing detailed district-wise data and beneficiary lists.
The Committee decided to review all ongoing and completed projects under multilateral and bilateral frameworks in its next meeting.
Key Participants
The meeting was attended by Senators Kamran Murtaza, Haji Hidayatullah Khan, Falak Naz, and senior officials from the Economic Affairs Division, NESPAK, and other relevant departments.
Story by Mushtaq Ghumman
