NAB starts probe against Mian Mansha
Islamabad: National Accountability Bureau (NAB) has initiated a probe against the power plants owned by Pakistan’s billionaire Mian Muhammad Mansha over making billions due to a higher rate of return.
The power plants owned by business tycoons include Lalpir Power Limited, Nishat Chunian Limited, Nishat Power Limited, Pakgen Power Limited.
Senator Nauman Wazir said in a meeting of the senate committee on power held on Wednesday that the case of power plants owned by Mian Mansha had landed in NAB.
He said that the guaranteed rate of return was given 17 percent to Independent Power Plants (IPPs) but according to the balance sheet of power plants, they were receiving a 40 percent rate of return. He said that the case of Mian Mansha,s power plants had gone to NAB for investigation.
He further said that government should initiate a probe National Electric Power Regulatory Authority (NEPRA) for allowing different costs for different projects. The cost of some projects has been allowed at $0.5 million per MW, some $1 million, and some projects at US$1.5 million, he said.
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He said that power producers had given manipulated figures about the consumption of fuel during the time of submitting a business plan to the government. These power plants were not receiving money according to the heat rate and therefore we’re making the exorbitant rate of return.
He claimed that power producers were receiving Rs 422 billion per annum on account of capacity payments due to faulty agreements without generating electricity. He suggested that government should ink an agreement without the condition of capacity charges and power plants should receive money for the electricity they generate.
Lakhra power plant
The sub-body of the senate committee on power also submitted its report on the Lakhra power plant. While briefing the committee the senator Nauman Wazir said that it was the only plant installed on locally produced coal. He said that the machinery of the Lakhra power plant was installed in 1997 but the locally produced coal did not match the specification.
He said that the power plant was not shut down as per schedule for proper maintenance purposes which also led to problems. He said that 6000-7000 local manpower had been engaged in coal mining to run this project. He further said that the coal mine had proven reserves of coal for the next 55 years to operate this plant.
He further said that they had also held meetings with investors like Fauji Foundation who were ready to invest in this power plant. He said that the existing capacity of this power plant was 150 Megawatt (MW) which could be enhanced to 650 MW. He said that plant could resume operations with an investment of US$30 million in the next three months.
He added that it would require US$250 to US$300 million investment to increase its capacity to 650 MW. He further said that its electricity generation cost was Rs4.75 per unit and the sub-committee proposed reversed bidding of this project to resume operations.
