Return of mobilisation advance: RPP submits pay-order sans mark-up amount

The Reshma Rental Power Company on Friday submitted a pay-order of outstanding amount pertaining to mobilisation advance, without mark-up, in the Supreme Court in pursuance of apex court's orders.
While hearing the rental power projects case on Thursday, a two-member bench headed by Chief Justice Iftikhar Muhammad Chaudhry was informed by Pepco counsel that the project was given 14 percent mobilisation advance of Rs 4.5 billion, from which Rs 2.53 billion, through negotiable instrument, had been submitted to the apex court but the SC directed it to deposit all the mobilisation advance, with mark-up.
The Pepco director submitted the report on Friday, saying that the company had re-deposited mobilisation advance, without mark-up. It is notable that the Reshma Power Project was given mobilisation advance for producing 201 MW, but it was presently contributing merely 55 MW to the national grid. So, the SC had warned the company that it would 'face consequences' if it failed to abide by the order.
An advance mobilisation fund of Rs 4.5 billion was paid to the plant on October 3, 2009, after securing a bank loan at 16 percent mark-up, but the project is yet to achieve the commercial operation date (COD). It is worth mentioning that federal Housing Minister Faisal Saleh Hayat claimed before the bench during last hearing in RPPs case that outstanding amount against Reshma was Rs 6 billion along with the mark-up. He requested the court to order the plant to return the mobilisation advance, in dollars, in which payment had been made to the RPP.