Power Division Probes NTDC Delays
The Power Division has examined the Public Transmission and Despatch Organization (NTDC) for pulling out significant advancement projects from the Public Area Advancement Program (PSDP), including the Power Dissemination Effectiveness Improvement Task (EDEIP), which the World Bank supports. NTDC delays investigation of PSDP projects. The withdrawal has hampered contract conclusions, specialist payments, and project tasks. The World Bank has expressed worries about the project’s progress due to delays in hiring important consultants and excessive use of funds.
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Investigation and NTDC’s Reaction
The removal of several important development programs from the Public Sector Development Programme (PSDP), including the World Bank-funded Electricity Distribution Efficiency Improvement Project (EDEIP), has prompted the Power Division to investigate the National Transmission and Despatch Company (NTDC). The investigation’s special secretary, Arshad Majeed Mohmand, first requested that NTDC provide the pertinent fiscal year 2024–2025 information by November 13. But even after several reminders, NTDC didn’t comply until December 20, which led to more investigation. As a result, Waseem Younas, the managing director of NTDC, received a warning for failing to submit the required paperwork on time, which raised questions about the company’s resolve to resolve the matter quickly.
Effect on Operations and Projects
The removal of key projects has delayed operations, disrupted contracts, and hindered essential reforms, impacting overall energy sector efficiency.
Important Projects Are Disrupted:
The elimination of significant schemes, including the Electricity Distribution Efficiency Improvement Project (EDEIP), supported by the World Bank, has interrupted critical project operations.
Consultant Payment Delays:
Disruptions in project operations have led to delays in paying consultant salaries, which has impacted project continuity and morale.
Stalled Contract Finalizations:
The removal of schemes has also delayed the finalization of new contracts, further slowing down project progress.
Procurement Delays:
The delay in hiring Project Implementation & Management Support Consultants (PIMSCs) has hindered the procurement of essential resources and equipment for power distribution companies (Discos).
Impeded Reforms:
High staff turnover at Discos has significantly delayed critical reforms in the electricity distribution sector, exacerbating the problem.
World Bank’s Concerns
The World Bank is concerned about slow fund utilization, project delays, and inadequate reform progress in Pakistan’s electricity sector.
Slow Fund Utilization:
Only 3.6% of funds for the EDEIP have been disbursed, delaying project progress.
Implementation Delays:
Slow hiring of consultants and procurement processes have hindered project execution.
Reform Progress:
The World Bank is worried about the absence of progress on key changes in the power area.
Recommendation:
The Bank urges that they give more authority to Discos’ CEOs to speed up decision-making and project implementation.
Government’s Response and Future Plans
In response to the ongoing delays and concerns raised by the World Bank, the government is seeking an additional $50 million in financing to implement an Asset Performance Management System at PESCO and HESCO. This funding aims to improve operational efficiency and enhance the performance of these power distribution companies. Furthermore, they have urged the government to expedite reforms and address bottlenecks in project execution. To accelerate progress, the World Bank recommends granting more decision-making authority to the CEOs of Discos, enabling quicker implementation of necessary reforms and projects.
Conclusion:
The Power Division’s investigation into NTDC’s delays has revealed significant disruptions in project operations, contract finalizations, and consultant payments. The World Bank has expressed concerns over slow fund utilization and inadequate reform progress. NTDC delays investigation of PSDP projects. To address these challenges, the government is seeking additional funding and plans to grant more decision-making authority to Discos’ CEOs.
FAQ’s:
1. Which projects were impacted by the removal from the PSDP?
The removal primarily affected the Electricity Distribution Efficiency Improvement Project (EDEIP), along with other critical development schemes in the power sector.
2. Why were the projects removed from the PSDP?
The authorities have not fully disclosed the exact reasons for the removal, but they have disrupted project operations, including consultant payments and contract finalizations.
3. How has NTDC responded to the inquiry?
NTDC initially failed to comply with the Power Division’s request for records but later provided the necessary documents after repeated reminders.
