ISLAMABAD: The auditor general of Pakistan has asked Wapda to “hold an inquiry and fix responsibility for five-and-half-year delay in implementation of Neelum-Jhelum hydroelectric project and its cost escalation (Rs190bn) by 225 per cent that show mismanagement in the project”.
A letter by the Auditor General to the Ministry of Water and Power said submission of no reply within four weeks would be taken as “formal acceptance (of responsibility) by the ministry”.
According to the letter on “Increase in cost due to abnormal delay in implementation of a project”, “Neelum-Jhelum hydroelectric project was to be implemented in eight years with effect from July 2002 to June 2010 as per provision of the PC-1.
“The project was approved by the Executive Committee of the National Economic Council (Ecnec) on February 28, 2002, at a total cost of Rs84.502bn. The project was to be implemented in eight years ie July 2002 to June 2010.
The tenders for this project were invited in May 2005 and scrapped due to non-responsiveness. The tenders were again invited in November 2005 which was also declared non-responsive.
“Third time the tenders were invited in July 2006 (Part-I and II) and M/s CGGC-CMEC Consortium was accepted and the project awarded to them at total contract price of Rs90.90bn on July 7, 2007. The contract agreement was signed on December 19, 2007.
“The contractor started the project in Jan 2008. As such the project, which was to be started in July 2002, commenced in Jan 2008 - five-and-half-years late from its original date as provided in PC-1. As per contract agreement the project will be completed in April 2016.
“Due to abnormal delay in the implementation of project, its cost has increased to Rs278.882bn, as incorporated in the PC-1 under revision.
Thus, there is variation in cost of Rs190.380bn which is 225.29 per cent above the originally approved cost. Due to delay in implementation of project not only the cost has increased but also the benefits to be achieved upon completion of project could not be achieved.
“Five-and-half-year delay in implementation of project and resultant 225.29 per cent increase in cost shows mismanagement and the authority
Internews
