‘Irregularities’ in Dasu-Islamabad Transmission Line Project: Senate body for investigations by NAB, FIA

ISLAMABAD: The Senate Standing Committee on Economic Affairs has called for investigations by the National Accountability Bureau (NAB) and the Federal Investigation Agency (FIA) into alleged irregularities amounting to Rs1.282 billion in the 765kV Dasu-Islamabad Transmission Line Project and ADB 401B 2022 Lot-II-A, involving the procurement of ACSR Bunting Conductor, which allegedly caused a loss of around Rs600 million to the national exchequer.

The Senate body, chaired by Senator Saifullah Abro, reviewed the implementation of its recommendations, ongoing and completed foreign-funded power sector projects, progress on Sindh road sector projects, and the Emergency Flood Assistance Project (EFAP).

The Committee Chairman informed members that, in line with the Committee’s unanimous recommendations, the FIA and NAB had been directed to investigate alleged irregularities in the 765 kV Dasu-Islamabad Transmission Line Project and the ACRS Bunting Conductor Project. FIA officials confirmed receipt of the committee chairman’s letter in this matter.

He appreciated the FIA’s efforts in uncovering the alleged misuse of goods imported under tax-exempt schemes, despite resistance from the FBR, and reiterated the Committee’s resolve to protect public funds and ensure accountability. He directed the relevant authorities to take strict action against officials found responsible for irregularities.

The Committee expressed serious concern over the Power Division’s reluctance to provide details regarding the auction of defunct power plants and stressed the need for transparency and strict implementation of the Right to Information Act. The Committee also discussed non-payment for power plants auctioned through the government-to-government (G2G) mechanism and allegations that certain individuals had used the name of a government-owned company to acquire auctioned plants after making only 10 percent payments. The Chairman directed the Power Division to initiate an inquiry into the matter, including allegations regarding the submission of fictitious names of the Board of Directors of a public-sector company. He also directed that the alleged involvement of the GENCO Holding Company chief be thoroughly examined.

According to the committee, the Rs. 1.282 billion amount relates to taxes and duties under Lot IV of the Dasu-Islamabad Transmis-sion Line Project. The committee noted that the bidding documents had specifically excluded these taxes and duties from the bid evaluation.

However, the amount was later incorporated into the price awarded to M/s NWEPDI TBEA JV. The Senate panel alleged that officials in the Power Division, National Grid Company, and its Board of Directors were reluctant to rectify the matter.

It further alleged that officials benefited from the difference between the awarded price and the price quoted by the second-lowest bidder, potentially causing a substantial loss to the national exchequer. The committee also expressed concern over alleged attempts to conceal the issue during Departmental Accounts Committee proceedings.

The Committee was briefed on the progress of the Dasu-Islamabad Transmission Line Project and was informed that the project was facing delays due to administrative issues, including right-of-way matters. The Committee directed the concerned authorities to resolve the bottlenecks and ensure timely completion.

Abro expressed concern over the appointment of an allegedly inexperienced and ineligible consultant, which, he said, was contributing to delays and is not capable of testing imported project material. He also raised concerns regarding the composition of the Board of Directors and emphasized that relevant expertise and experience should be considered while appointing members. The Economic Affairs Division was directed to take up the matter with the Prime Minister through the relevant Minister.

The Committee sought detailed information on the mode of payment, right-of-way difficulties and law-and-order issues contributing to delays in the Dasu-Islamabad Transmission Line Project. The Chairman assured the Committee that he would personally pursue the matter with the NHA, the Khyber Pakhtunkhwa Government and other stakeholders to resolve outstanding issues. He directed that the project be treated as a priority agenda item and must be completed at the earliest to safeguard public money.

The Committee also expressed concern over prolonged load-shedding in Sindh and urged the authorities to utilize available capacity of Independent Power Producers (IPPs), particularly in view of the capacity payments being made to them.

The Committee reviewed the reversal of the net-metering policy and its implications for consumers registered under the previous policy. The Committee was informed that around 400 cases were currently under process and would be resolved. The Chairman directed IESCO to address the issues while protecting the legitimate rights of consumers. He also directed IESCO to resolve complaints of overbilling and load-shedding faced by residents of Bahria Town. The Committee was further briefed on the Emergency Flood Assistance Project (EFAP), under which 60 percent of the work has reportedly been completed across 17 districts of Sindh.

The Committee was informed that flood-damaged roads were being rehabilitated and that the newly constructed roads had been designed with climate-resilient features, including provisions for the safe passage of floodwater such as culverts and bridges.

The Committee, however, raised questions regarding the preparation of the initial PC-I, particularly the absence of a clearly defined scope of work, and expressed concern over the approval of loans by lending agencies without adequate consideration of transparency and project requirements. The Chairman directed the Economic Affairs Division to arrange a meeting with the country directors of foreign lending institutions to discuss the issues and address the identified anomalies.

The Committee also questioned discrepancies concerning the originally identified 1,622 kilometres of damaged roads. It was informed that, under the revised PC-I, around 400 kilometres were approved for rehabilitation, while approximately 829 kilometres of roads had ultimately been constructed. The Committee also raised concerns over an alleged pattern of discrepancies between estimated costs, bid values and tendering amounts, as well as allegations regarding the award of contracts to specific construction companies.

The Chairman directed that a letter be written to the Chief Minister of Sindh, recommending an FIA investigation into the alleged irregularities and discrepancies in the project. He reiterated that transparency, accountability and protection of public funds must remain the foremost priorities in all foreign-funded development projects.

Copyright Business Recorder, 2026