Here is an interesting communication from long time back. Apparently there have been accusations and issues on this project for a long long time. There are a lot of attachments if you are interested in details.
Link:
Google Groups
July 23, 2013
Dear Najam Sethi,
AOA,
Trust you are doing well.
I watched your program on Geo TV on July 21st. Unfortunately some of the opinions conveyed and your assessment of the dynamics of the Nandipur Power Project and its cost escalation were not based on factual reality. I had wanted to discuss this matter with you and my daughter Manal, who is very good friends with your daughter Meera, had called up Jugnoo and conveyed my desire to discuss the matter with you. I was told that you would call, however to-date I have not received any call or message from you. I would like to take this opportunity to register some factual points. I am also attaching my letter to the Honorable Chief Justice of Pakistan along with all the attachments. I would kindly request you review the same so that the overall matter is clear and there is no ambiguity.
It was in August 2007, that I was asked by the then Prime Minister, to take over WAPDA / Power Sector and put it on track as I had done for SSGC and the Gas Sector. I took up my assignment as a formidable challenge but with the full conviction that I had the ability and courage to undertake the assignment with impeccable integrity and unquestionable honesty, which incidentally is a landmark of our family, starting from my grandfather Sheikh Gulab Din (who was a close friend of Allama Iqbal); my father (one of the senior most officers who joined Pakistan Railways in August 1947 after migration); my eldest late brother (former Chief of Naval Staff); and my two other brothers, one in the Navy (late) (Commodore), and one in the Military (Brigadier).
The following points may be noted;
1. I am a private sector professional and not a WAPDA/PEPCO breed manger. I served as MD SSGC where I was appointed through a transparent, independent and merit based process by an independent HR Consultant under the directions of the Board of Directors (BOD) as per the rules of corporate governance and Company’s law from Oct 8th, 2002 – Sept. 09th, 2007. My impeccable record of high level of competence, corporate management, and introduction of numerous firsts in the Public Sector Utility stand out and have been recognized Nationally as well as by the global Energy Sector. SSGC received several awards Nationally, as well as four awards Internationally from leading organizations. My personnel awards, recognition etc. is in addition.
2. I reactivated the Nandipur and Chicho Ki Malian Power Projects which have been shelved earlier. There was no deal between me and/or the Secretary or anybody else, as was stated erroneously by you. This was one of my conditions of taking the assignment with Shaukat Aziz, as for 15 years WAPDA/Public Sector had been constrained by the vested interests from putting up any power plant.
3. The bidders on record were called for a revalidation of the proposals and the lowest bidders were selected and contract negotiations proceeded thereof.
4. Mr. Shaukat Aziz wanted to favor and grant the Chicho Ki Malian 525 MW project to Qataris (namely Saif-ur-Rehman at a cost of about $ 600 million plus). We informed the GOP that we have negotiated a price of EPC contract of $ 365 million plus about $ 60 million for IDC and insurance, civil cost at site, etc. which was put forward in a formal meeting. So the Qatari proposal was dropped.
5. The full due process of PC-1, ECC approval, MOF Sovereign Guarantee etc. was undertaken for both Nandipur and Chicho Ki Malian projects plus an additional project of 747 MW for Guddu replacement was also initiated and tendered.
6. The above would have added 1700 MW lowest cost power generation to the National capacity by 2010-2011 much to the disdain of the IPPs.
7. A comprehensive financing package for Nandipur was obtained through open offers by the world’s leading banks/syndicates, who were all called by PEPCO to make offers/ presentations in Islamabad with MOF and EAD officials present. ECA financing package of $ 329 million (EPC cost) was agreed with French component through CO-FACE and Chinese Yuan component through Sino-Sure along with local financing from BOP. With all arrangements in place and financing syndicate led by BNP Paribas and Dong Fang Electric Corporation Limited (DEC) having provided additional discount with my personal surety that no commission will be required or solicited by anyone. The project approval by PEPCO BOD, ECC etc. was obtained.
8. The contract documents were signed with DEC in a public ceremony on January 28th, 2008, and thereby Nandipur became Pakistan’s lowest priced power project at $ 385 million for a 425 MW project. The French Commercial Counselor and the Chinese representatives and DEC President witnessed the signing, and all expressed amazement as to how could the contract had been finalized, signed and financing arrangements made in such a short time and without a cent of commission. (This incidentally is my forte and my summary resume and record even at SSGC will give you an idea of my academic qualification and professional record).
9. Nandipur price was the lowest than the IPPs setup 10 years earlier under the PPP government and thereafter. This fact itself speaks volumes of the transparency of the contract. And the fact that the IPPs have been skimming millions of dollars and charging a high tariff based on high inflated cost from the GOP.
10. The Chicho Ki Malian project details were also finalized, financing arrangement put in place by end March 2008. We thought it appropriate that the new Prime Minister should be called to witness the signing ceremony which was held on April 1st, 2008, in the PM’s Secretariat.
11. Thereafter my troubles began as I did not agree to the dictates of the new Minister, Water and Power, Raja Parvez Ashraf. His objective and intent was to milk the system and violate all rules of business which was not acceptable, so I submitted my letter to be relieved on May 7th, 2008, to the Ministry and walked out. Thereafter I am not responsible for all or any actions, many of which were conducted with dubious intentions, at the behest of new political and government functionaries.
12. As per my information the formal Financial Close for Nandipur project was achieved in October 2007, and LCs were opened and equipment delivery started, while DEC also mobilized at site. The single largest component was the three (3) Frame 9 GE Turbines which were delivered and paid for and are currently installed on site in perfect condition. Similarly most of the equipment from China was shipped, and paid for under bridge financing scheme, some of which delivered and erected at site, while other six shipments were held up at port.
I need not repeat the rest of the story but would like to mention that sometime in 2010 in a live program by Mubashar Luqman on Dunya TV, I openly stated that due to non-agreement on the payment of commission demanded by Baber Awan, the file with a simple matter has been held up in the law ministry. Consequently DEC was not paid for services/construction and they de-mobilized and left. The rest is all public knowledge and reported in the press many times over.
The other key point is that the independent commission had reported to the Supreme Court in the Progress Report No. 3;
“The committee after visual inspection of material/equipment lying at Karachi ports is of the considered opinion that overall physical condition of the material / equipment is satisfactory”
Now, my concerns relative to your statements during the “Aapas Ki Baat” program are;
a) That there was simply no plot during my short tenure based on some conspiracy theory as mentioned by you.
b) You stated without verifying that I as MD authorized payment of Rs. 7 billion. This is astonishing news as no payment of Rs. 7 billion was made during my short tenure and I am trying to find out from PEPCO since then if there was any Rs. 7 billion payment made and on what grounds and to whom.
c) You claimed that I was afraid of some inquiry by NAB regarding the Rs. 7 billion payment which would implicate me in the case so I pre-empted by breaking the story to put the matter in another direction. I am sorry to say nothing can be far from the truth and I am amazed as to who gave you this information and why you did not bother to check on the truth from myself or any other credible person.
d) You had made some other conjecture and speculations which have no involvement of my part and I don’t recall the exact content of the same. I would be happy to discuss the same and provide the factual position on the same.
Needles to say, that day I received many calls from friends and foes alike, who were shocked to hear of all the new allegations and opinions put forth by yourself. On the lighter side there is much that is said in discussions in “Aapas ki Baat” when we do our armchair politics and come-up with all sort of conspiracy theories and scenarios to solve the problems of Pakistan. While many such conspiracy theories crop up but, certainly they are not discussed in public forums, nor is any person publically accused.
On seeing even the ECC grant approval to an escalated cost, I was compelled to write to the Honorable Chief Justice, the contents of my letter are simple and have no ambiguity.
In view of the above factual reality and in order to protect my professional standing of impeccable integrity, honesty, dignity, and honor, I would kindly request that you please do clarify this matter in you next program.
I look forward to hearing form you.
Munawar B. Ahmad, P.E
Former MD PEPCO
(Sept. 10th, 2007 – May 7th, 2008)
Former MD SSGC
(Oct. 8th, 2002 – Sept. 9th, 2007)
Attachments (10)
SC letter on Nandi Pur (06-07-13).pdf
563 KB View Download
Annexure 1 - Summary of Nandipur 425 MW.pdf
14 KB View Download
Annexure - A.pdf
542 KB View Download
Annexure - B.pdf
583 KB View Download
Annexure - C.pdf
1 MB View Download
Annexure - D.pdf
907 KB View Download
Annexure - E.pdf
545 KB View Download
Annexure - F.pdf
604 KB View Download
Annexure - G.pdf
863 KB View Download
Brief Resume - Munawar Baseer Ahmad.doc
33 KB View Download
Ahmad Fraz Khan
7/25/13
FW: Pakistani Press Nandipur & Chicho Ki Malian Projects- Open letter to Najam Sethi from M B Ahmad
Subject: Pakistani Press Nandipur & Chicho Ki Malian Projects- Open letter to Najam Sethi from M B Ahmad
From:
brig...@yahoo.co.uk
Date: Wed, 24 Jul 2013 21:38:42 +0500
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Attachments (21)
ATT00001
679 B View Download
ATT00002
216 B View Download
SC letter on Nandi Pur (06-07-13).pdf
563 KB View Download
Annexure 1 - Summary of Nandipur 425 MW.pdf
14 KB View Download
ATT00003
216 B View Download
Annexure - A.pdf
542 KB View Download
ATT00004
216 B View Download
Annexure - B.pdf
583 KB View Download
ATT00005
216 B View Download
Annexure - C.pdf
1 MB View Download
ATT00006
216 B View Download
Annexure - D.pdf
907 KB View Download
ATT00007
216 B View Download
Annexure - E.pdf
545 KB View Download
ATT00008
216 B View Download
Annexure - F.pdf
604 KB View Download
ATT00009
216 B View Download
Annexure - G.pdf
863 KB View Download
ATT00010
216 B View Download
Brief Resume - Munawar Baseer Ahmad.doc
33 KB View Download
ATT00011
168 B View Download