Sindh orders probe, blacklists contractor over major fraud in World Bank-funded solar project

The Sindh government ordered on Monday a sweeping investigation into the World Bank-funded Sindh Solar Energy Project (SSEP) after uncovering serious financial and procedural irregularities, including fake import documents, improper contract alterations, and payments made for incomplete or missing work.

The directives were issued during a cabinet meeting chaired by Chief Minister Syed Murad Ali Shah on Monday, where the government also approved the blacklisting of the main contractor implicated in the alleged fraud, a statement said.

Senior officials briefed the cabinet that despite the project’s near-full utilisation of funds, several major components, including solar parks, rooftop installations and large-scale distribution of home solar systems, remained unfulfilled.

According to the briefing, contract modifications were carried out without approvals, equipment reportedly imported for the project never reached Pakistan, and a number of NGOs were engaged for distribution tasks without competitive bidding.

Significant public funds were disbursed against “unclear, undocumented or unverifiable outputs,” the cabinet was told.

In light of these findings, the chief minister directed comprehensive audits, recovery processes, and accountability actions against all responsible parties, including private firms and officials involved in the project’s oversight.

The SSEP, scheduled to close in July 2025, was designed to expand clean-energy access across Sindh. But the cabinet noted that several flagship components l, such as the development of solar parks and installation of rooftop systems, failed to progress beyond early stages.

The most extensive activity under the project involved the Solar Home System (SHS) initiative, which aims to distribute 250,000 free solar kits to low-income, off-grid and low-power households.

Officials informed the cabinet that while distribution has been ongoing, critical gaps in documentation, monitoring and verification triggered concerns over the accurate tracking of beneficiaries and the quality of the systems supplied.

The Chief Minister emphasised that the provincial government “will not tolerate misuse of public resources” and that the case would be pursued to ensure financial discipline, transparency and protection of climate-related investments.

The cabinet also directed the Energy Department to strengthen oversight mechanisms for ongoing and future renewable-energy programmes to prevent similar breaches.

Further reports from the audit teams will be presented to the cabinet in the coming weeks, officials said.

Rs6.6bn released for Thar–Chhor rail link

The cabinet approved the release of Rs6.610 billion for the Thar Coalfield–Chhor railway line after project costs escalated from Rs53 billion to over Rs90 billion. The federal government has already disbursed Rs18.7 billion and urged Sindh to release its committed share to avoid delays.

DHA water rate reduced

The cabinet approved a revised water sale rate for DHA, reducing the tariff from Rs0.75 to Rs0.60 per gallon under the Dumlottee–DHA pipeline project. The rate adjustment follows negotiations between KWSC and DHA and is intended to balance affordability with the project’s financial sustainability.

Sindh to issue Digital Property Cards

The cabinet gave in-principle approval for a province-wide digital land record system, including blockchain-based databases, online transfer processes, and digital property cards embedded with SIM technology. Sukkur IBA University will develop the software, while a new Sindh Land Records Authority will oversee implementation.

Rangers deployment in Karachi extended

The cabinet approved a request to the Ministry of Interior for a further one-year extension of Pakistan Rangers (Sindh) deployment under the Anti-Terrorism Act to support law enforcement in Karachi.

Sindh modaraba gets Rs2bn capital injection

To strengthen its Islamic financing portfolio, Sindh Modaraba was approved for Rs2 billion in equity injections over FY26 and FY27. The institution has maintained strong credit ratings and reported record recoveries with an NPL ratio of 1.26%.

Coastal resilience project cleared

The cabinet ratified loan and grant agreements for the $200 million Sindh Coastal Resilience Sector Project, supported by ADB and the Green Climate Fund. The project includes integrated water management, flood resilience work, and large-scale mangrove plantation, with completion targeted for December 2031