Senate Committee Demands Transparency in NTDC Power Projects

In recent discussions, the Senate Standing Committee on Economic Affairs has taken a closer look at the various projects within Pakistan's Power Division. This review is particularly significant as it involves both ongoing and completed projects funded by multilateral and bilateral partners. The committee, chaired by Senator Saifullah Abro, convened at the Old PIPS Hall in Parliament Lodges, Islamabad, to ensure that the operations of the National Transmission and Dispatch Company Limited (NTDC) are transparent and efficient.

During the meeting, officials provided an overview of the current status of 16 ongoing projects supported by multilateral development partners. Notably, eight of these projects are in collaboration with the Asian Development Bank, seven with the World Bank, and one with the Islamic Development Bank and OPEC Fund. The total financial commitment for these projects amounts to a staggering $4,350.99 million. Furthermore, the committee reviewed 16 completed projects with bilateral partners, including Japan, Korea, Germany, and France, which collectively received $629.07 million in funding.

One of the key points of discussion was the delay in the 'Second Power Transmission Enhancement Investment Programme Tranche 2'. This project, which involves the construction of substations in Mirpurkhas and Zhob, was initially scheduled for completion by December 31, 2024. However, it is now projected to finish in August 2025. The officials attributed this delay to several factors, including the COVID-19 pandemic, delays in the issuance of Letters of Credit (LCs), and design changes that occurred later in the project timeline.

Senator Abro expressed his concerns regarding the frequent delays in NTDC projects, many of which have been postponed by a year or more, resulting in significant financial implications for the government. The committee has called for comprehensive details regarding these delays to be presented in the next meeting. Additionally, they have requested that the tendering details for all completed and ongoing projects executed by NTDC be made available for review.

In response to these concerns, Alamzeb Khan, the Additional Secretary for the Power Division, informed the committee that a 'Monitoring and Implementation Wing' has been established within the ministry. This wing is tasked with overseeing the progress of these projects and will provide monthly reports to ensure accountability. Furthermore, the ministry is planning to restructure NTDC to enhance transparency and operational efficiency.

The discussions held by the Senate Standing Committee highlight the critical need for transparency and accountability in Pakistan's power sector. As the country continues to navigate challenges in energy supply and infrastructure development, it is essential that stakeholders remain vigilant and proactive in addressing delays and inefficiencies. The establishment of monitoring mechanisms and the push for detailed reporting are steps in the right direction, ensuring that taxpayer money is utilized effectively and that projects are completed on time. Ultimately, the success of these initiatives will play a vital role in strengthening Pakistan's energy framework and supporting its economic growth.