Government to consider defaulter RPPs

Staff Reporter

ISLAMABAD: Government is reconsidering the defaulter companies who were involved in Rental Power Plants (RPPs) case and breached the policy of Economic Coordination Committee (ECC), NEPRA instructions and violated Penal clause. The information revealed in a meeting of Public Accounts Committee (PAC) held here on Thursday. While discussing the audit report of WAPDA a question asked by Syed Naveed Qamar of Pakistan People’s Party (PPP) about if government is once again considering the companies involved in rental power plants case and giving them big contracts. In response Secretary Water and Power Mohammad Younus Dagha briefed the committee that if the generators are providing the electricity on reasonable price then there is no expostulation to purchase from them. He said that most of the companies involved in rental power plants case have vindicated their liabilities but major defaulter companies are based in Turkey and America so we could not recover the amount from them. On that Naveed Qamar replied that foreign firms are not under your control then how could you recover the amount from the companies based in Turkey and America. The representative of National Accountability Bureau (NAD) briefed the committee that the case was already referred to National Accountability Bureau (NAB) for inquiry and 5 references out of 12 have been submitted to Supreme Court. MNA Phyllis Azeem said why government is conceiving these companies again. Sheik Rasheed Ahmed said that why today the machinery become as per standard that was below standards once. On that Secretary Water and Power replied that if they acquired NOC from NAB and offering reasonable tariff then there would be no objection in considering them again. He said that now in revised policy of ECC there is no room for violation as stern conditions were set.  Chief Executive Officer GENCO II told PAC that recovery of three rental power plants has been made and the remaining amount of 5.77million will be recovered soon. Mian Manan was of the opinion to not discuss the issue until the decision of court as The Supreme Court already has quarreled all deals made by the government with rental power plants set up since 2006 by declaring them illegal, non-transparent and invalid, and ordered NAB to recover the amount with interest.

About the Author