Nandhipur power project the biggest failure of most useful resource of electricity in Pakistan with worst faces of Pakistani politicians and careless acts of personnel working there, get to know more about nandhipur power project.

1. Nandipur Power Project
By: Wajid Hussain Khoso

2. Outline:
• Nandipur Power Project
• Construction
• Crisis during inception of project
• Inauguration of project
• NAB
• Conclusion
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3. Nandipur !
• NANDIPUR Hydel Power Station Gujranwala is situated on Upper
Chenab Canal near Nandipur village at a distance of about 10 Km
from Gujranwala on Gujranwala- Sialkot road.
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4. Nandipur Power House 4

5. Construction:
• This proposal was accepted by Pakistan Government in 2005.
• Leading role was Muhammad Shahbaz Shareef (Chief Minister of
Punjab)
• Finally it was started under the supervision of C.M of Punjab
Muhammad Shahbaz Shareef on 21st October 2013.
• Crisis made a great delay in the completion of this project.
• Date of it’s completion was 16 April 2011.
• 27 Billions were the decided money to complete the project.
• It took 31.42 Billions more and was finally completed in 58.42 Billions
in 2015.
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6. Crisis during inception of project:
• In January 2008, the Government signed contract with China Dongfang Electric
Corporation to construct the Nandipur Power Project and paid a 10% down
payment.
• A conflict between the Ministry of Water and Power and the Ministry of Law and
Justice delayed the project execution for two years from March 2010 to March
2012.
• The Ministry of Law and Justice raised an objection over a violation of Public
Procurement Regulatory Authority (PPRA) rules and the granting of the contract
to China Dongfang Electric Corporation.
• As a result, machinery worth $85 million remained stuck at the Karachi Port for
over two years.In September 2012, in the time of the opposition party PPP.
• The president of Dongfang Electric Corporation, Zhang Guorong, terminated the
contract for the construction of the Nandipur Power Project, saying his company
had suffered losses worth $85 million.
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7. Inauguration of project
• In June 2013, Pakistan's Ministry of Water and Power started
renegotiating the contract with Dongfang Electric Corporation
• After successful negotiations, on July 8, 2013, work on the project was
restarted with an escalated cost of Rs. 57.4 billions.
• After several delays, the project was finally inaugurated by the Prime
Minister of Pakistan Nawaz Sharif on 31 May 2014.
• After 5 days of starting the project, hiccup took place because of
mismanagement, this incident alarmed the critical situation and
questions started to take place.
• National Electric Power Regulatory Authority (NEPRA) claimed over high
production costs, and the use of inappropriate fuel.
• NAB came in force to see after all this cost how could it be possible that
it wont even last for 10 days.
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8. NAB inquiry over alleged corruption
• Nandipur lodged complaints against it after NEPRA strike in October 2015.
• Senator Aiteraz Ahsan demanded the National Accountability Bureau of Pakistan
commence a probe of the multi-billion scandal and regular losses.
• The NAB launched an inquiry amid complaints However, the inquiry faced serious
hurdles after critical records were destroyed by the security apparatus inside the
plant on unknown directives.
• The inquiry stalled for two years before the public accounts committee (PAC)
directed the NAB in October 2017 to complete the pending probe of the Nandipur
project and to expedite its investigation over the multi-million corruption scam.[
• On December 2017 , the NAB filed a reference of corruption and alleged
misappropriations within Nandipur along with the illegal construction of a road to
the Sharif family residence.[
• The NAB also extended the scope of the inquiry by accusing PPP’s former Water and
Power minister Raja Pervez Ashraf, ex-law minister Dr. Baber Awan, former law
secretary Pir Masood Chishti, and other bureaucrats of causing losses due to delays
in the project.
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9. Cont:
• The energy produced by Nandipur was extremely expensive, at Rs.
42/unit, and the project was shut down after five days of operation.
• Besides ineffective cost, the plant ran at less than 42% efficiency, even
less than decades-old power plants in the country which produce energy
at Rs. 7.65 per unit(kwh).
• National Electric Power Regulatory Authority (NEPRA) claimed against it,
because the amount was fixed at the rate of Rs. 11/ unit.
• After this failure, the prime minister of Pakistan Nawaz Sharif ordered
two separate audits: one by an auditing firm of international repute and
the other by the auditor general of Pakistan.
• The handpicked auditing firm A. F. Ferguson & Co. refused to become
part of the controversy, restricting itself to a financial audit only.
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10. Audit Revealed:
• The position of Managing Director was created by the chief minister of Punjab as his personal
choice, while no such position was included in the original provision.
• A grade 19 officer of Parks Horticulture Authority (PHA), Cap. (R) Muhammad Mehmood, was
appointed as managing director with a high salary, without any professional experience
applicable to the post.
• The managing director commissioned a low-capacity furnace oil treatment plant (FOTP)
without consulting technical staff and engineers at the plant. This resulted in total collapse of
the furnace-operated plant.
• The initial startup of the plant was done with the wrong choice of fuel, damaging the plant
and requiring invocation of the O&M contract.
• To cover up mistakes, wrong contracts were awarded for O&M to incompetent firms on a long-
term basis, resulting finally in the cessation of the project.
• Two workers were arrested in odered to delete all the data in computers regarding to import
and export good which were used in this project, both were Shahbaz Shareef’s workers
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11. Conclusion:
• 07th June 2018, article in Dawn newspaper was published “The
Supreme Court (SC) on Thursday ordered the National
Accountability Bureau (NAB) to conduct an investigation into
alleged corruption in the Nandipur Power Project.”
• Which came to a conclusion by setting All people free and put it
in pending in order to find some solid evidences.
• It was the game which was played by the executives of PPP but
this project was in the Charge of C.M which no longer was in
government that led this case unclosed.
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12. Thank You!