The Senate Standing Committee on Economic Affairs, chaired by Senator Saifullah Abro, convened on Thursday to assess the progress of the Dasu Hydropower Project (DHP) and the Mohmand Dam Hydropower Project, along with their associated transmission lines, Bus Rapid Transit (BRT) projects, and alleged financial irregularities in several development initiatives, including the Sindh Solar Energy Project (SSEP). The committee expressed concerns regarding the payment of approximately Rs6 billion in taxes allegedly deducted on the basis of fake invoices in SSEP.
Dasu Hydropower Project Overview
The meeting began with a detailed briefing by WAPDA officials on the Dasu Hydropower Project. Officials informed the committee that the revised PC-1 cost of the project stands at Rs1,737 billion and that the project will generate a total of 5,400 megawatts of electricity upon completion, making it the largest hydropower project in the country in terms of generation capacity. In the first phase, 12 generating units will be installed with a cumulative generation capacity of 4,320 megawatts. Subsequently, three additional units will be added, each producing 360 megawatts, increasing total generation to 5,400 megawatts. Work is also underway on a 765-kilovolt transmission line associated with the project. WAPDA officials told the committee that the project has secured full funding, including external financing, and that overall physical progress has reached 30 percent. The completion date under the approved PC-1 remains November 2028.
Concerns Over Delays and Financial Implications
However, concerns were raised over repeated delays. Senator Waqar Mehdi observed that it appeared unlikely that the project would be completed within the stipulated timeframe. WAPDA officials acknowledged that the project had already faced two delays. The committee expressed serious displeasure over discrepancies in official records presented by the Ministry of Economic Affairs. Members also voiced concern over weak interdepartmental coordination. Senator Rubina Khalid criticized administrative inefficiencies and called for strict accountability mechanisms, urging authorities to establish timelines for performance and take disciplinary action against officials who fail to deliver.
During the briefing, committee members examined financial implications of project delays. Senator Hidayatullah Khan noted that despite only 30 percent overall progress, approximately $46 million had already been paid in interest. Chairman Senator Saifullah Abro noted that a loan of $485 million had been obtained for the project and that $46 million in interest payments had already been made. WAPDA attributed delays to security concerns, terrorist incidents, contractor performance issues, and local protests. The explanation was challenged by committee members, with Chairman Abro questioning why delays continued despite the absence of recent security incidents. The committee noted with concern that despite the passage of eight years since the signing of the loan, work on the main dam and spillway had yet to commence.
Power Sector Performance and IPP Settlements
The committee also discussed the broader performance of the power sector. Senator Kamil Ali Agha expressed disappointment over WAPDA’s declining institutional performance despite availability of funds. Discussion then shifted to capacity payments and settlements made to independent power producers (IPPs). Chairman Abro demanded complete details regarding capacity payments, settlements with IPPs, debt obligations, and interest payments. He directed officials to provide complete details regarding all settlements reached with IPPs, including the total amount paid, outstanding liabilities, interest obligations, and the officials responsible for negotiating the agreements. He further asked for an update on auctioned public sector power plants. He observed that it had earlier been briefed that approximately Rs46 billion had been generated through the successful sale of scrap from defunct thermal power plants. When Power Division officials responded that such information could not be disclosed without ministerial approval, Chairman Abro rejected the explanation, stating, “The minister is obliged to provide information to Parliament. If details are withheld, the committee will pursue the matter at the highest level and place all facts before the public.” The committee recommended that the Economic Affairs Division formally issue a letter to the Power Division, seek the relevant details, and submit them to the committee.
Mohmand Hydropower Project and National Dam Fund
The committee subsequently reviewed progress on the Mohmand Hydropower Project. WAPDA officials informed members that the project faces funding constraints and is scheduled for completion in December 2028. The panel raised questions regarding the status of public donations collected under the national dam fund initiative. WAPDA officials informed the committee that Rs24.5 billion remains with the federal government under the Federal Public Consolidated Fund.
Transmission Line and BRT Projects
The committee also discussed the 765kV Dasu-Islamabad Transmission Line Project in detail. Officials informed the committee that the transmission line will be completed in 2028. While discussing the implementation of recommendations made by the committee in its previous meeting, the committee expressed strong displeasure over non-implementation. The chairman underscored that the absence of a transmission network when the Dasu Dam becomes operational will result in an estimated daily loss of approximately Rs2 billion. The committee expressed serious concern as to how the company will be able to complete the project within the stipulated completion date of June 2026, especially when the contract timeline extends up to 2028. The committee also held discussions on all ongoing and completed Bus Rapid Transit (BRT) projects financed through multilateral, bilateral, and other donor agencies, including procurement of buses and machinery by the government of Sindh. Members reviewed project proposals, tendering procedures, current implementation status, interest payments, and financial obligations from 2002 to date.
Sindh Solar Energy Project Irregularities
The committee further examined progress on recovery of allegedly illegal taxes (about Rs6 billion) paid to a contractor and action taken against financial irregularities identified in the Sindh Solar Energy Project under World Bank financing. The committee took serious notice of the non-recovery of the amount and directed the Energy Department, Government of Sindh, to expedite the recovery process and ensure recovery at the earliest. The implementation status of reports submitted by consultant NESPAK and consultant M/s Associated Consulting Engineers (ACE) Limited regarding the Akram Wah Canal (SWAT Project) was also reviewed.
