The Supreme Court on Thursday directed National Accountability Bureau to investigate Dr Samar Mubarakmand and others for causing a huge loss to the national exchequer in Underground Coal Gasification (UCG) project at Thar. Chief Justice Mian Saqib Nisar, heading a three-member bench, said despite spending Rs 4.69 billion, no electricity was produced, adding; "The man [Dr Samar] standing in front of me is responsible." Dr Samar was standing at the rostrum.
The NAB was ordered to probe the individuals in view of the Auditor General of Pakistan's (AGP's) report, which was submitted by Additional Attorney General Sajjid Illyas Bhatti. The court also directed the federal and Sindh governments to cooperate with each other and file scientists' report for the revival of the project and to avert environmental threats.
The audit report says, "Due to ill planning, UCG project had to face several issues during its execution. Due to non-preparation of feasibility study, it was unclear whether underground coal gasification was a commercially viable project. Absence of environmental impact assessment study prior to the initiation of the project was always going to be an issue."
According to it, Planning Commission of Pakistan as well as the Sindh government did not play their due roles in successful implementation of the project. Procurement of machinery and equipment remained big problem throughout the execution. On several occasion, re-tendering was done which indicated ill preparations.
"Owing to the absence of technical consultancy, the project was never going to be complete on time. As regards cost-benefit ratio, stream of benefits could not accrue as project could not be made operational. The project management could not even generate enough power to run its own plant and provide electricity to its residential colony."
Financial releases were irregular which led to the disruption in project operations. Ill-planned execution and poor monitoring by governing body/Energy Department, Sindh government, further impeded the operational activities. Despite spending more than Rs 4.69 billion, the project has not been able to deliver as per PC-I objectives.
Overambitious targets as stated in PC-I were noticed. Project management was not able to meet the deadlines as set out in PC-I of the project. The situation further aggravated when the project authorities failed to satisfy the technical appraisal committee during its visit in May 2012 regarding successful end to end cycle production. This created doubts regarding viability of the project.
It is high time for the concerned authorities to take a critical decision regarding the future of the project. A detailed technical review may be carried out by a third party regarding sustainability of the project and based on the recommendations of the that committee, future of the project may be decided.
During the proceedings, the court observed that Rs 4.69 billion had been wasted and the project caused a heavy financial loss to the country. The Chief Justice said: "Dr Mubarakmand had claimed Pakistan would get free electricity but over Rs 4 billion had been wasted."
The scientist stated that Rs 1 billion was spent on feasibility, adding that the project was approved after the government had "seen for itself that my project was operating." He said the project was closed because funds were not released for the UCG project.
Advocate General Sindh Talib Amin told the court that it was the Sindh government's responsibility to run this project. He said that the government thinks that something can be done on scientific basis to revive the project.
The bench, therefore, ordered the federal and the Sindh governments to furnish a report on the project within six weeks before adjourning the case till an unspecified date.
The UCG project was conceived in 2009 to generate electric power through underground coal gasification process. Three PCs were approved during 2009 and 2010 by the Planning Commission. The funding of first two schemes, approved by CDWP and ECNEC, commenced in April 2012 and till June 2012 100 per cent funds were utilised. However, major components as approved under relevant PC-I were not procured despite utilisation of all funds under the subject schemes.
The third scheme namely 2x50 MW Power Plant from Syn-gas was approved by ECNEC in December 2010 before completion of two schemes. Subsequently, Rs 1800 million was released in two phases i.e. Rs 900 million in 2012-13 and Rs 1,000 million in 2013-14.
From the financial year 2012-13 to 2017-18, Rs 3,713.84 million was released for the third scheme without any technical appraisal by the Planning Commission. From 2009-2018, the total expenditures on the three schemes was 4697.66 million.
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