Tarbela-4th extension project: revised plan militates against PM''s instructions on $51 million recovery

Water and Power Development Authority (Wapda) has reportedly tailored a revised plan for Tarbela-4th Extension Hydropower Project aimed at nullifying Prime Minister''s instructions regarding the recovery of $51 million from the contractor given as an incentive for early completion of the project, well-informed sources in Wapda told Business Recorder.
The newly-appointed Chairman Wapda Lieutenant General Muzammal Hussain (Retd), sources said, is said to have been given this position due to his contacts in Prime Minister''s House on the condition that he would expedite work on hydel projects. One of the main reasons behind former Chairman Wapda Zafar Mehmood''s departure was the delay in Tarbela-4th Extension and Nandipur hydropower project.
The government paid $51 million to the contractor on condition that the project should be functional by June 2017 but the contractor delayed it till February 2018 which angered the Prime Minister and Ministry of Water and Power. The sources said Wapda has claimed that the contracting firm has done some work on Tarbela-4 Extension including installation of machinery as per an agreement to complete the project which implies that the contractor deserves fiscal incentives.
"Contractors will not return the entire amount to Wapda which implies that the new plan will be a win-win for both Wapda and the contractor," the sources maintained. Three units of 470MW - each with a total capacity of 1,410MW - are being installed on T-4 tunnel of which one unit is expected to be operational in July or August 2017. With the completion of Tarbela 4th Extension Hydropower Project, the total capacity of Tarbela will be enhanced to 4,888MW from existing earlier capacity of 3,487MW.
When contacted, a spokesman for Wapda said that the incumbent management has rationalised the timelines for completion of Tarbela 4th Extension Hydropower Project with a view to completing the project ahead of its original schedule, so that a sizeable quantum of low-cost hydel electricity could be added to the national grid to mitigate power shortages in the country.
"Concerted efforts are being made to meet the rationalized timelines for completion of the project through additional funds/resources available for the project," the spokesman added. Regarding the matter for recovery of the additional amount that had already been paid to the contractor against the accelerated construction plan, the spokesman said that various modalities have been worked out keeping in view the legal and contractual obligations of this amount.
Secretary Water and Power, Younus Dagha raised this issue at a meeting of Cabinet Committee on Energy (CCoE) held on September 15, 2016 under the chairmanship of Prime Minister, Nawaz Sharif. The committee was informed that the issue regarding payment to the contractor for early completion of the project ($51 million) by June 2017 required to be settled.
Secretary Water and Power said that despite having received the payment, the contractor did not live up to his commitment; therefore, measures for the recovery of the payment should be explored. Prime Minister expressed annoyance at the top brass of Wapda and directed the management to take necessary measures for the recovery of $51 million payment to the contractor. The reasons for the delay in the project, according to the Wapda chairman, include late decision-making by project authorities, geological compulsions, unexpected water flows and poor management and execution by consultants.