Mangla Dam project: NA panel tells Wapda chief to probe alleged corruption


WEB DESK: A parliamentary body on Friday directed the Chairman of Water and Power Development Authority (Wapda) to conduct inquiry into the alleged corruption, which caused long delay in Mangla Dam Raising Project (MRDP) and submit the report before the committee within three weeks.

The National Assembly Standing Committee on Planning, Development and Reform which met here under the chairmanship of Abdul Majeed Khan Khanan Khail while discussing land acquisition for Mangla Dam Raising Project (MRDP) asked Chairman WAPDA and other quarters concerned to provide all details in first week of June 2016.

The meeting discussed the issue related to MRDP, the acquisition of Land (on lease etc), cancellation of contract and cost increase of the project. The committee raised questions about the cancellation of the contract M/s KKP which has caused billion of Rupees extra loss to the country.

The Committee asked that the Secretary Wapda, Chairman Wapda and MD Managing Director (MD) National Engineering Services Pakistan (NESPAK) to ensure their presence in committee meetings, otherwise committee will take strict action against them.

Wapda officials informed the meeting that Rs 53 billion were spent on land acquisition for MRDP, a total 129,000 kanals of land was acquired for the project and each kanal of land cost Rs 300,000.

Replying to a question asked by chairman committee on the land cost and required qualification of NESPAK officials, chairman NESPAK said that over 90 percent officials of NESPAK have no relevant qualification including project manager of MRDP.

The Committee directed that all related documents for the revised PC-I for Mangla Raising Project may be provided and along with approval of ECNEC. The committee directed that the Wapda must provide all documents regarding the cancellation of seven contracts of Mangla Raising Project.

The committee has yesterday observed that billion of Rupees loss was incurred to the national exchequer by Wapda in the Mangla Dam Raising Project. The committee was informed that there is seepage issue in Mangla Dam but it was not dangerous.

The cancellation of contracts for one company, in the projects related to Mangla Dam Raising Project, and awarding it to the new contractor has caused a loss of Rs 4 billion to the National exchequer.

The committee asked about the measures taken for reimbursement of award money to M/s KKP Pvt limited as decided by the arbitrator, in MDRP four contracts including contract number MDR-26-27-35 and 36.

The committee was informed that the arbitration order the award of total Rs 1143.66 million to the contractor adding that WAPDA being dissatisfied with the arbitration of awards filed objections in the court. However the contractor rejected the claim made by WAPDA saying that despite the lapse of one and half year the authority didn’t challenge the decision in any court of law.

The committee was informed, by Wapda officials, that with the project MDR-26 the total cost of the project was Rs 596.668 million the project completion period was 18 months but even after the passage of 36 months the company has completed only 55 percent work. A payment of Rs 316.394 million was paid to the company while the cost of the remaining work is Rs 280.274 million.

The project number two of MDR 27’s total cost was 723.163 and project completion period was 18 months but even after the passage of 31 months the company has completed only 24 percent of Work.

The Company has received a payment of Rs 117.673 million while the cost of remaining 76 percent work is Rs 605.489 million. Regarding the contract number three MDR 35, it was informed that the total cost of the project was Rs 328 million and the project completion period was 18 months but even after the passage of 24 months the company has completed just 21 percent of work. The KKP has received a payment of Rs 71.937 million for the work done and the cost of the remaining work is Rs 256.063 million.

About the contract number four MDR 36, it was informed that the total cost of the project is Rs 360 million and project completion duration was 18 months but despite the passage of 23 months the company has completed only 12.80 percent of work. The company has received a payment of Rs 83.372 million and the cost of the remaining work is Rs 276.628 million.

The committee questioned the award of the contracts of the remaining work of KKP to new company. The committee was informed that the remaining work of MDR-26, which was originally Rs 280.274 million, was awarded to a new company at Rs 1624 million.

The remaining work of MDR-27, which was originally Rs 605.489 million, was awarded to a new company at Rs 1378 million. The remaining work of MDR-35, which was originally Rs 256.063 million, was awarded to a new company at Rs 597.830 million. The remaining work of MDR-36, which was originally costing Rs 276.623 million, was awarded to a new company at Rs 565.775 million.

The committee was informed that the work is still not completed despite the passage of 6 years and this time the contractors have terminated their contracts with Wapda because of the default of the later.

WAPDA was unable to clear their dues therefore they have terminated their contracts and are making no progress since 2013, the committee was informed.

MNAs, Chaudhry Jaffar Iqbal, Nadeem Abbas Rabaira, Dr Asma Mamdot, Shaheen Shafiq, Shamas-un-Nisa and Iftikhar-ud-Din attended the meeting, besides officials of Ministry of Planning, Development and Reform. – Business Recorder

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