ISLAMABAD: An inter-ministerial fact-finding committee has been constituted to investigate the award of a coal terminal contract to a company with negative working capital for the Sahiwal Coal-Fired Power Plant, an Independent Power Producer (IPP) established during the Pakistan Muslim League-Nawaz (PML-N) government’s tenure in 2013.
A sub-committee of the Public Accounts Committee (PAC) issued a directive for an investigation into an audit para of Port Qasim Authority for the Year 2017-18, which was discussed in the meeting held on Tuesday, chaired by Muhammad Moin Aamer Pirzada.
During the audit of Port Qasim Authority for the year 2017-18, the auditors pointed out that, contrary to wider competition, the management invited the bids only from the contractors with certain eligibility criteria. These conditions, the audit officials state, limited the participation in bidding, and only one bidder, M/s Huaneng Shandong Ruyi (Pakistan), was allowed to participate in the bidding process.
In addition, the working capital of the bidder was negative USD 2215.83 million during 2013, which further increased to USD 2361.93 million during 2014, even after the contract was awarded to the party.
Further, there was a difference in the names of the participant company, M/s Hua NengRuyi Pakistan Energy Company Limited- China Harbour Engineer Company, and the contract awarding company, M/s Huaneng Fuyun Port & Shipping (Pvt) Limited, which makes the participant more doubtful.
The audit officials are of the view that these findings reflect a lack of due diligence and favouritism to the contractor. The matter was reported to the management in April 2019.
Earlier, the Ministry of Maritime Affairs agreed to hold an inquiry, but it could not be held in 2020.
In April 2026, the management PQA sought clarification from the bidder regarding negative working capital. The bidder clarified that their working capital is in case equivalent to Rs 22 billion. It is further clarified that the bid was submitted by Huaneng Shandong Ruyi Energy and Qingdao Old Captain Shipping Company Ltd. In terms of PQA Project Guidelines, Huaneng FuangPort & Shipping, as the SPV Company, was incorporated in Pakistan, having 51 percent sharesin HSR and M/s Qingdao Old Captain Shipping Company Ltd, having 49 percent shares.
Chairman, PQA, explained the matter in its background information; however, the convener directed the Secretary of the Ministry of Maritime Affairs to conduct an inquiry.
Copyright Business Recorder, 2026
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