Wapda chairman in soup

ISLAMABAD: Water and Power Development Authority (Wapda) Chairman Lt-Gen (R) Muzammil Hussain is in hot soup as the Investigation Committee, constituted by the prime minister into losses worth billions of rupees incurred because of premature operation of Tunnel-4 of Tarbela Dam, named him as the one who fixed the inauguration date.The Investigation Report, which is now with Prime Minister Imran Khan, says, “It is also determined from the statements of M(P), Adviser Projects WAPDA, CE (O&M) and the PD T4HPP that the date of inauguration was made without their consultation and also not at the Authority level of WAPDA, rather, it was done at the level of Chairman WAPDA.” The report calculated a total loss of US$753 million (Rs105 billion) during the execution of the Tunnel-4 Tarbela project and it include the losses incurred because of serious faults occurred owing to the premature inauguration of the project in March 2018.The Wapda chairman when contacted said the investigation report is not based on facts. He said the inauguration decision was taken strictly in accordance with “commercial coordinated schedule” in Jun 2017 as was agreed between three stakeholders- employer, consultants and the contractor. The retired general officer said the “commercial coordinated schedule” was approved by Wapda authority comprising chairman and members. He said that the commissioning of the project in March was also strictly in accordance with WB guidelines. He added the WB wanted to make ready the unit by March/ April 2018 to ensure benefits in May/June the same year.According to the investigation report, “The statements of Chairman WAPDA and Adviser Projects WAPDA provide that the project completion dates were fixed to save the project from the conditions of time at large and these dates were fixed in July 2017 stating inter alia the completion of Unit 17 on 25-02-2018. With this in view, the date of operation of Unit 17 stands established to be fixed through a consultative process of the parties to the Contract vis. The Employer (WAPDA), the Consutlants (T4CJV) and the Contractors (Civil and EM Contractors). The unit 17 was subsequently inaugurated on 10-03-2018. Notwithstanding above, it is also determined from the statements of M(P), Adviser Projects WAPDA, CE(O&M) and the PD T4HPP that the date of inauguration was made without their consultation and also not at the Authority level of WAPDA, rather, it was done at the level of Chairman WAPDA.”The report did not say that the premature inauguration was done following the pressure from the then PML-N government or the prime minister. Instead, it reveals that on the eve of the inauguration, Wapda submitted the following talking points for the then Prime Minister, Shahid Khaqan Abbasi: “Commissioning of Tarbela 4th Extension Hydropower Project is yet another historic milestone achieved by the government to add 1410 MW in the National Grid.” “Completion of this great project within time and cost always held top priority of the government.” “While congratulating the whole nation on this remarkable achievement, I would especially appreciate the untiring efforts of the Project Team comprising WAPDA Staff, Project Consultants, all the Contractors and other stakeholders whose selfless devotion enabled to timely complete the project.”The Investigation Committee (IC), constituted by the prime minister into losses incurred because of premature operation of Tunnel-4 of Tarbela Dam, unanimously determined that the total loss occurred during the execution of the project comes to $753.7 million. The IC was set up by the premier who took notice of The News report dated Sept 15, 2018 about the huge losses incurred because of premature inauguration of the 1410 MW Tarbela-4 project in March 2018 done by the Wapda management only to please the then ruling PML-N government.According to the report, this loss includes: “US$350 million estimated and projected by WAPDA for the years 2017 & 2018, US$48 million paid to the Civil Contractor on account of acceleration under the VO-02 R2 and US$5.7 million under CO-10”. Besides, the report added, another loss of Rs70 million incurred by WAPDA to lift the gates of Draft Tubes stuck in the mud after the refusal of the Civil Contractor.”In regard to the loss to the national exchequer due to inauguration of the project before time, the report said: “It is important to mention that there is a further matter which needs probe relating to signing of Variation Order in March 2015 for making payment to the Contractor equivalent to US$51 million in order to accelerate the project completion from March 2018 to June 2017.” The report added: “It has also been brought before the IC that despite making substantial payments of the order of US$48 million on account of VO-02 R2, not a single unit could be made ready for generation up to the end of the high flow season of 2018 let alone 2017. “The annual energy generation from T4 HPP as estimated at the design stage was 3,840 million units. Because of having no energy in the high flow season of 2017 the associated revenue loss becomes Rs30 billion at the rate of generating cost of Rs7.814 per unit of electricity, despite spending US$ 48 million extra to the revenue equivalent to Rs30 billion,” the report added.While discussing the premature inauguration of the project, the report lamented that the most worrisome aspect of the alarming state of affairs in Wapda is that the saner voice and expert advice of Independent International Panel of Experts (IPOE), especially engaged on hefty payments from the national exchequer with acclaimed global contemporary technical knowledge and insight as well as of-reputed series of explicit and unequivocal warnings by the World Bank, not only disregard and project timelines were not rescheduled to the flood season of 2018 i.e. June/ July 2018 in order to doubly reassure smooth and hazard free operations. The IC report clearly said the Wapda had disregarded the advices of IPOE and World Bank who had alerted the authority at that time in the month of February 2018 that water will not be available.The IC proposed the prime minister the following actions:i) Necessary directions may be issued to the Auditor General of Pakistan for holding a comprehensive performance audit of T4 HP within 60 days for determination of the following, among others, to carry out: a) An overall performance audit of the project. b) Specific to the matters spelled out and losses worked out…. (in the report). c) By fixing responsibility and apportioning the corresponding loss caused by the respective individual/ entities. d) Any other matter relating to or/ and ancillary to the above.ii) In the light of the report of the performance audit, the decision for any criminal inquiry into the matter by FIA or NAB may be decided. The News had reported that only due to the premature inauguration of T4 in March 2018 by Wapda to please the then PML-N PM had culminated in operational losses of more than Rs25 billion over the three-month annual flood season of 2018.It was reported by this newspaper that Wapda had inaugurated the $850 million Tarbela-IV project in March, despite warnings from the German engineering consultant, Voith, not to operate the turbine of the fourth tunnel at Tarbela Dam while its reservoir was at the dead level. However, Wapda went ahead and ran the turbine for several hours during the inauguration of the project by the then prime minister, Shahid Khaqan Abbasi. As a result, mud and slurry from the practically empty reservoir filled part of the tunnel, rendering three turbines inoperable. Since the Tarbela Dam reservoir was at the dead storage level in March, the only little water available for use during the inauguration ceremony was located in the flushing inlet and full of silt. The result was a daily loss of Rs280 million.

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