ISLAMABAD: The government is facing loss of billion of rupees on Nandipur Power Project as it is generating only 230 mw of electricity, in place of 425 mw expected from it.
According to the contract if the company would not present positive results on the project, then it would be liable to pay fforfeitures.
The Central Power Purchase Agency (CPPA) has levied fine on the Chinese contractor firm on its poor performance but the government has prevented the agency to take the amount from the company.
Government took plea that China, who is investing huge amount on CPEC and imposing penalty on Chinese firm would lay negative impact on economic corridor project. The government advised CPPA to take the amount from the consumers instead of faulty Chinese firm, but National Electric Power Regulatory Authority (NEPRA) had rejected the proposal. The NEPRA in its reply said that the consumers are already buying expensive electricity and putting additional load would not be appropriate.
The loss which was occurred due to Nandipur Power Project was estimated Rs 4.46 billion in the month of June this year. The project was commenced in 2011 with the cost of 23 billion, but when the sitting government came into power the cost was re-estimated to Rs 54 billion.
The work on the project was stopped and again started several time due to different reasons. The Chinese company also complained that the material and stuff imported from China, France and Germany was theft from the site. But after the visit of Prime Minister Nawaz Sharif to China, the work on the project had been recommenced. Last year PM Sharif inaugurated Nandipur Power Project and declared it first step in the journey towards light from darkness, but after few days of its opening, the plant closed the production.
NEPRA had fixed the tariff of Rs 11.32 per unit for the electricity produced on furnace oil by Nandipur Power Project for the period of 30 years. The sources said that government is giving heed towards producing cheaper electricity so a shifting Nandipur Power Plant on gas instead of furnace oil and laying gas pipeline for it is on the cards.
When Daily Times contacted the spokesman of Ministry of Water and Power, he said that at present Nandipur plant is producing some 260 mw but it would be improved in next few months.