Latest news with #NTDC
Business Recorder
4 days ago
- Business
- Business Recorder
Rs500m loss inflicted on national exchequer? Senate body raises questions over role of Nespak, NTDC
ISLAMABAD: The Senate Standing Committee on Economic Affairs raised serious questions over the role of National Engineering Services Pakistan (Pvt) Limited (Nespak) and National Transmission and Dispatch Company (NTDC) in awarding the bid to the third lowest, causing Rs500 million loss to the national exchequer. The committee met with Saifullah Abro in the chair here on Thursday for further discussion on the recommendation made after detailed deliberations in the committee's previous meetings concerning the EAD and its related departments (NTDC projects including 765Kv Dasu-Islamabad Transmission Line project (LoT-I-LoT-IV) upto date progress, expenditure and briefing through MD, Nespak on ADB 401B-2022 LoT-II A(ACSR Bunting Conductor) regarding inquiries reports. The committee's chairman remarked that it was a matter of great embarrassment that Nespak, a national institution responsible for technical evaluations, failed to prevent such a decision. It was Nespak's responsibility to ensure proper verification, because Nespak's role is to scrutinise the document, he stated. Senator Abro highlighted that the 'contract is not awarded to the deserving by which the Rs500 million of the country could have saved.' He noted that 'the company to which the project was awarded Newage, Lahore, lacked the relevant experience, while expressing serious concern that this type of negligence cannot be ignored.' Senator Abro stated that the matter will be pursued through the relevant forums like, the Federal Investigation Agency (FIA), the Public Accounts Committee (PAC), and the National Accountability Bureau (NAB) to ensure that the public funds are recovered. He also recommended that strict action should also be taken against the involved officers. Referring to legal inconsistencies, he questioned 'if Public Procurement Regulatory Authority (PPRA) laws are not applicable in the case of domestic preference, and how can a letter from the Asian Development Bank (ADB) be considered valid?' He recalled that during the previous meeting, three written letters were presented by the caretaker minister, which further raised serious questions regarding the transparency of the process. When the committee sought further details, it was informed that all relevant data from the Engineering Development Board (EDB) had been destroyed in a fire, and only one verified letter was presented before the committee. Senator Kamal Ali Agha inquired whether an inquiry was conducted following the fire incident. The concerned department stated that no inquiry had been carried out. The chairman committee, recommended that a formal inquiry be conducted into the fire incident and that strict action be taken against those found responsible, including officers from the Power Division. During the committee meeting, a discussion was held regarding where the department conducts testing, which institutions are responsible, and where laboratories are located in Pakistan. The department informed the committee that type testing is conducted internationally and not within Pakistan. It was further stated that the type test for the current year, 2024, was conducted in Hungary. The chairman inquired about who the witness to the test? The department told that the witness was not verified. They also stated that, according to a 2023 policy, having a witness was not a mandatory requirement by the consultant. However, after detailed discussion, it was revealed that no such policy had been formulated. The chairman committee strongly remarked that no valid testing had been conducted and an attempt was made to mislead the committee, which amounted to fraud. The chairman asked whether any recovery of the misused funds had been made, to which the department responded that a letter had been written to NTDC regarding the matter. The chairman committee recommended that all the involved companies be blacklisted, the misappropriated funds be recovered, and that the officers involved be terminated from service. Furthermore, he recommended that the recovered amount should be deducted from the salaries of the responsible officers. The committee also inquired about the report and minutes of the 282nd Board meeting, as well as the letter issued by the NTDC Board. It was noted that while the minutes of the committee meeting were dated 24th December 2024, the Board was required to submit its report within 15 days. However, the BOD has submitted after six months. Meanwhile, the committee remarked that the Board itself is violating its own letter and treating the amount of Rs1.28 billion as insignificant. The chairman recommended that strict action be taken against the Board and that the amount be recovered within two weeks. Copyright Business Recorder, 2025
Business Recorder
12-05-2025
- Business
- Business Recorder
Uplift projects: Ministry authorises Rs894.1bn in 10 months
ISLAMABAD: Ministry of Planning, Development and Special Initiatives has authorised a total of Rs894.1 billion (81.28 per cent) out of Rs1.1trillion budgeted allocation for development projects from July to April under Public Sector Development Programme (PSDP)-2024-25. Out of the total authorised/disbursed amount, the total amount spent so far on the development projects during the corresponding period stood at Rs448.64 billion (50.2 per cent), according to the latest data released by the Ministry of Planning, Development and Special Initiatives. According to the Ministry of Finance's notification, the Ministry of Planning, Development and Special Initiatives authorised 15 per cent funds for the first quarter, 20 percent for the second quarter, 25 percent for the third quarter, and 40 percent for the fourth quarter under the PSDP. PSDP 2024-25: Rs628.891bn development funds released in 7 months According to data available, the Planning Ministry authorised Rs638.23 billion for development projects of various federal ministries, divisions and other departments against Rs839.67 billion budgeted allocations while Rs339.2 billion has been spent on the projects from July to April for the financial year 2024-25. The ministry authorised Rs225.85 billion out of Rs255.85 billion budgeted for the National Highways Authority (NHA) and Power Division (NTDC/PEPCO) for development projects while a total of Rs109.44 billion has been spent so far. A total of Rs161.26 billion has been authorised out of Rs161.26 billion for development projects of the NHA and Rs94.59 billion out of Rs94.59 billion budgeted allocations for the power sector (NTDC/PEPCO) for the current fiscal year. According to the data, a total of Rs169.6 billion out of Rs169.6 billion has been authorised for development projects of Water Resources Division while Rs72.55 billion has been spent. A total of Rs48.64 billion has been authorised out of Rs50.77 billion budgeted allocations for development projects for the Cabinet Division while Rs34.969 billion has been spent. The ministry also authorised Rs156.598 billion out of Rs276.47 billion for provinces and Special Areas while Rs99.96 billion has been spent on the development projects. A total of Rs56.94 billion out of Rs61.11 billion has been authorised for development projects of Higher Education Commission (HEC) while Rs24.886 billion has been spent so far. The ministry has authorised Rs8.374 billion out of Rs9.93 billion for the development projects of National Food Security and Research Division. A total of Rs22 billion out of Rs35 billion has been authorised for development projects of Railway Division while Rs20.975 billion has been spent so far. The ministry also authorised Rs5.042 billion out of Rs6.3 billion for development projects of the Aviation Division, Rs4.174 billion for the Climate Change Division, Rs17.25 billion for the Federal Education and Professional Training Division, Rs414.4 million for States and Frontier Regions Division, Rs8.375 billion for Information Technology and Telecom Division and Rs3.7 billion for Information and Broadcasting Division. The ministry also authorised Rs21 billion out of Rs24.75 billion for development projects of National Health Services, Regulations and Coordination Division, Rs9.78 billion out Rs9.78 billion budgeted allocation for the Interior Division, Rs4.578 billion for Defence Division, Rs2.2 billion for Defence Production Division, Rs7.5 billion for Planning, Development and Special Initiatives Division, Rs1.56 billion for Maritimes Affairs Division, Rs6.65 billion for Science and Technological Research Division and Rs2.13 billion for Finance Division, Rs1.95 billion for Petroleum Division. Planning Ministry also authorised Rs254.80 million to the Ministry of Communications (other than NHA), Rs322.35 million for the Establishment Division, Rs4.109 billion to the Housing and Works Division, Rs104 million to the Human Rights Division, Rs1.207 billion to Inter Provincial Coordination Division, Rs930 million to the Law and Justice Division, Rs355.25 million to the National Heritage and Culture Division, Rs256.33 million to the Pakistan Nuclear Regulatory Authority, Rs175 million to the Religious Affairs and Interfaith Harmony Division and Rs5.817 billion to the Revenue Division etc. Copyright Business Recorder, 2025
Business Recorder
07-05-2025
- Business
- Business Recorder
NGC BoD constitutes restructuring body to oversee transition
ISLAMABAD: The National Grid Company (NGC), formerly known as the National Transmission and Despatch Company (NTDC), has informed the Power Division that its Board of Directors (BoD) has constituted a Restructuring Committee to oversee all phases of the transition, as approved by the Federal Cabinet, sources told Business Recorder. The move follows a letter from the Power Division dated November 20, 2024, regarding the implementation of the Cabinet's decision— communicated on November 6, 2024— to restructure NTDC. Maria Rafique, Chief Law Officer (CLO) of NGC, informed the Power Division that, in compliance with the Cabinet directive, NTDC shareholders in their 2nd Extraordinary General Meeting on December 26, 2024, unanimously resolved to change the company's name to National Grid Company of Pakistan Limited, subject to approvals from the Securities and Exchange Commission of Pakistan (SECP). Cabinet decides to divide NTDC into two entities To facilitate this transition, the CLO was authorised to carry out all necessary legal and procedural requirements. Nepra issued its no-objection to the proposed name change on February 24, 2025, in response to the application submitted on December 19, 2024. Subsequently, SECP formally approved the change through a Certificate of Incorporation on March 20, 2025 (Identification No. 0039611). Simultaneously, the Energy Infrastructure Development and Management Company (EIDMC) was also incorporated. The Ministry of Energy (Power Division) submitted incorporation documents, including the Articles and Memorandum of Association, to SECP on January 1, 2025. SECP issued the Certificate of Incorporation on January 3, 2025, under Section 16 of the Companies Act, 2017, legally establishing the company. Following incorporation, the CLO communicated post-incorporation steps via emails dated January 15, January 28, February 25, and March 28, 2025, to relevant officials in the Power Division under the framework of the State-Owned Enterprises Act and SECP regulations. On the matter of the Independent System & Market Operator (ISMO), NGC's Legal Department facilitated its incorporation by preparing the Articles and Memorandum of Association and ensuring full regulatory compliance. ISMO was formally incorporated on December 4, 2024. To support ISMO's operationalization, NGC allocated legal, finance, and HR resources with effect from January 1, 2025. Additionally, NTDC, CPPA-G, and ISMO jointly submitted applications to Nepra for the transfer and acquisition of relevant licenses on December 31, 2024. Business Transfer Agreements (BTAs) and Service Level Agreements (SLAs) between NTDC and ISMO, as well as between CPPA-G and ISMO, have been approved by the respective Boards and signed by all parties involved. Although the Power Division's directive only required NTDC's Board to implement the transitions to NGC and EIDMC, the company also proactively supported the incorporation and initial operations of ISMO. The restructuring is progressing in line with the Cabinet's directives, with major milestones already achieved. The transition to the National Grid Company of Pakistan Limited remains ongoing, including steps such as organisational rightsizing. 'We have been regularly updating the Power Division on restructuring progress as required. Further updates will be provided upon completion of the remaining formalities,' said Maria Rafique, adding that the BoD of NGC has formally established a Restructuring Committee to guide the transition. Nepra has also issued licenses to the newly established entities, supporting the restructuring process and marking a significant advancement in Pakistan's power sector reform agenda. Copyright Business Recorder, 2025
Business Recorder
05-05-2025
- Business
- Business Recorder
Grid must transform immediately
EDITORIAL: One reform the Prime Minister is particularly optimistic about is the reduction in power prices. Yes, there has been some decline — though not as much as the government claims — in April's electricity bills. But the issue isn't just energy pricing, which has temporarily gone down; the real challenge lies in sustaining consumption on the national grid. The question is whether industrial consumers will return to the grid, and whether domestic solar adoption will slow down. On the ground, the sentiment is clear: if cheaper alternatives to grid electricity are available, consumers will switch — and many already have done so. The government has made gas prohibitively expensive for captive users, compelling a shift away from gas. However, not many are eager to rely solely on the grid. Some consumers already have furnace oil (FO)-based generation facilities and are using them because current FO prices make them competitive. Meanwhile, solarization is accelerating. Those who can rely almost entirely on solar power during daylight hours are doing so, and many may adopt storage solutions once battery technology becomes more affordable. The government has yet to finalise its revised net metering policy, even as net-metered solarization spreads rapidly. Additionally, non-net metered solar systems on single-phase meters — especially in rural areas — are growing in number and remain unaccounted for. To attract consumers back to the grid, the government must make it more reliable and cost-effective. However, lower hydel generation this year could dilute the benefits of reduced tariffs. Global energy prices — including those of oil, coal, and LNG — are declining, which is helping keep local prices in check for now. Still, industrial consumers are actively investing in alternative solutions and backup systems. Those who have temporarily returned to the grid from captive power may shift again if global energy prices reverse. Crucially, there is no permanence in the recent tariff reduction — it is not backed by a sustainable drop in base prices. Circular debt continues to grow. There is no significant reduction in line losses, no improvement in bill recoveries, and transmission bottlenecks remain unresolved. In essence, no meaningful reform has taken place in the energy sector. The grid is simply not ready. The bureaucracy that manages it seems unaware of the coming wave of battery-based solutions. History offers warnings: the world's biggest camera film company failed to adapt to digital and became obsolete. Shalimar Recording kept making cassettes and lives only in the memories of 1990s Pakistan. PTCL lost its monopoly because it couldn't modernise in time. NTDC's grid could face a similar fate if it fails to evolve. The global energy transformation will not pause to protect inefficient legacy contracts or outdated infrastructure. The grid must transform – urgently — if it wants to stay relevant. Copyright Business Recorder, 2025
Business Recorder
02-05-2025
- Business
- Business Recorder
CASA and the World Bank
EDITORIAL: As per a Business Recorder exclusive, the World Bank is likely to extend the closing date of Central Asia South Asia 1000 (CASA-1000) electricity transmission and trade project for three years (till December 2028). The reason: delays attributed largely to a restive Afghanistan as the required infrastructure is complete in Tajikistan and Kyrgyzstan (including the testing of the High Voltage Direct Current — HVDC — converter station) while in Pakistan the transmission line connecting the Nowshera grid to the electricity grid is 99 percent complete with 375 out of 376 towers complete and the remaining expected to be completed by June this year though the World Bank mission has submitted that (i) HVDC facilities will be tested only after the Afghanistan line is completed; (ii) additional financing will be required once the project goes into operational readiness in 2028 to meet NTDC's legal and technical obligations; and (iii) NTDC must update the information in STEP (step-by-step approach) by end of 2025. Two observations are critical. First and foremost, this project envisages export of hydroelectricity from Kyrgyzstan and Tajikistan (upstream countries relative to Uzbekistan, an agricultural country, whose water supply may be negatively impacted) coupled with the worsening Afghan-Pakistan relations with rising terror attacks in Pakistan from across the border and retaliation by Pakistan armed forces as well as the decision to expel illegal Afghan refugees from Pakistan. It must be recalled that India pulled out of the Iran Pakistan gas pipeline due to its energy security concerns, and Pakistan may do well to take similar concerns on board with respect to CASA-1000, given the opposition to the project from within and outside the four CASA countries. And secondly, CASA project began in 2016, a time when the country was suffering from massive daily load-shedding and this particular project was rightly viewed as one that would solve the country's energy shortfall at the cheapest rate possible without the need to construct expensive dams that would have required external financing — dams that are increasingly being opposed by multilaterals as challenging for the environment. Nine years later the situation is different on multiple counts: (i) insurance coverage costs for the required infrastructure in Afghanistan are expected to be prohibitive; (ii) Pakistan has surplus energy reliant on more expensive fuel, furnace oil. Though contracts signed by successive administrations with Independent Power Producers (IPPs) are in the process of being renegotiated — that include capacity payments and repatriation of profits in dollars — yet any additional power supply must take a back seat to first ensuring 100 percent vacation of existing generation, barring government operated generation companies that are at the bottom of the economic merit order; and (iii) the envisaged competitive electricity market may be further delayed as CASA is a government-to-government venture that would require a pledge by the government of Pakistan to pay Afghanistan the transit fees in dollars. World Bank website indicates that since August 2001 it has provided 2 billion dollars to Afghanistan with 280 million dollars to Afghanistan Resilience Trust Fund (ARTF) — to UNICEF and the World Food Programme as Approach 1.0; it has supported the people of Afghanistan since 2022 by extending funds for health, education, food security, water services and livelihoods as Approach 2; and pledged to continue to make IDA funds to complement ARTF financing as Approach 3.0, which will include assuming CASA-1000 project in a ringfenced manner to ensure construction payments and future revenue to be managed outside Afghanistan and do not involve Interim Taliban Administration (ITA). Without active participation, the vacation of the electricity to Pakistan through CASA-1000 will remain dicey at best. To conclude, given these circumstances, Pakistan, at the tail end of the supply chain, should reconsider delaying this project's implementation. Copyright Business Recorder, 2025
