TUESDAY DECEMBER 13: Rental power projects: notices issued to all respondents

ISLAMABAD: The Supreme Court on Monday issued notices to all the respondents in rental power projects (RPPs) case after it received information that Reshma Rental Power Plant was not paid an outstanding amount of Rs 750 million, although the project had reimbursed the entire mobilisation advance to the national kitty.
A two-member SC bench comprising Chief Justice Iftikhar Muhammad Chaudhry and Justice Khilji Arif Hussain has been hearing two identical petitions filed by federal minister Faisal Saleh Hayat and PML-N MNA Khwaja Asif alleging corruption in the contracts for RPPs. Abdul Hafeez Pirzada represented Reshma Power Project, Dr Pervez Hassan advanced arguments on behalf of Pakistan Power Resource (PPR) projects in Guddu, Multan and Bhikki while Khwaja Tariq Rahim represented Pepco.
Pirzada contended that Reshma Power Project has not been receiving money against power generation whereas Dr Hassan pleaded that PPR projects were installed keeping in view transparency in good faith. Expressing a deep sense of frustration, the Chief Justice observed that the PPR case was being heard for months, so it should conclude now. According to him, the SC is not concerned with the policies but transparency in transactions of projects in accordance with laid down rules.
The CJP added that there was a huge difference between solicited and unsolicited projects, adding that unsolicited power projects were against the concept of transparency. During the course of hearing, Pirzada apprised the bench that even after paying an amount of Rs 2.5 billion which Reshma Power Project had received as mobilisation advance, the project had not been receiving fuel price which he said was mandatory for electricity generation in the country.
Dr Pervez while representing PPR contended that PPR subrogated all rights negotiated with Alstom - a multinational power company - and took up the power project in Pakistan because Alstom had stepped down due to poor law and order situation in Pakistan.
Dr Hassan repeatedly said that no electricity could be sold until approval of tariff by Nepra, adding that Nepra had determined tariff and payments so the contract should be transparent. Dr Hassan told the bench that no power project could receive a single penny without approval of Nepra. The bench adjourned the hearing till December 13.