Rs76 billion donor funds, Rs9 billion interest paid on Dasu project

The Dasu Islamabad transmission line project has already paid Rs9 billion in interest on donor financing of Rs76 billion,

By : Nadeem Tanoli

Islamabad: The Dasu Islamabad transmission line project has already paid Rs9 billion in interest on donor financing of Rs76 billion, while construction remains very slow, raising serious concern in the Senate over the rising cost of delays and how project funds and equipment are being handled.

The Senate Standing Committee on Economic Affairs questioned the pace of the 765kV Dasu Islamabad Transmission Line Project and demanded clear answers about its financing, spending, procurement and progress.

Chairman Senator Saifullah Abro said the slow pace of construction could make it difficult to complete the transmission project within the planned two year period. He questioned how the work could be finished on time if construction continued at the current speed.

The chairman also raised alarm over the financial burden created by delays. The committee was told that 12 percent interest had been paid on the financing for the Dasu transmission line. Senator Abro pointed out that Rs76 billion had been received from donors, while Rs9 billion had already gone into interest payments.

The committee also examined the government’s funding for the project. Officials told the committee that Rs19 billion had been requested from the government for Dasu last year, while Rs17 billion was provided. They further said that another Rs12 billion had been released only a few days before the meeting.

Senator Kamil Ali Agha questioned the financial impact of the delayed release of the Rs12 billion and asked officials how much interest would have to be paid because of the financing.

The committee also questioned the procurement and delivery of imported equipment. Senator Abro asked why large quantities of material were being brought to project sites when the required towers had not yet been built.

He said bringing and storing equipment before the basic construction was ready raised questions about planning, spending and proper use of public funds.

The committee was also informed that a high level committee had been formed to monitor the Dasu transmission line project linked with the Dasu Dam. Several federal ministers are members of the monitoring body.

Senator Abro expressed concern over the difference between money being allocated, money being spent and the actual work visible on the ground. He stressed that foreign funded projects require strong supervision so that donor money is used properly.

The committee also examined a financial matter involving the recovery of Rs26 million reportedly linked to a fraudulent will document. Officials told the committee that Rs10 billion had been recovered as part of the wider recovery process.

Senator Abro questioned why the remaining Rs26 million had not yet been recovered. He also raised concern over the fact that private companies had recovered their money while the Government to Government part of the matter was still unresolved.

The chairman further questioned why information requested under the Right of Access to Information system had repeatedly not been provided. He initially called for the case to be sent to the Federal Investigation Agency, but the committee decided to give the department one final chance to formally seek a detailed briefing before deciding what action should follow.

The committee also sought detailed information from NESPAK about the work being carried out under different parts of the Dasu project and how payments were being made for Lots I to IV.

Officials explained that different activities were being handled through separate billing arrangements. The committee said it needed clearer information showing whether payments and spending matched the actual physical work being completed.

The chairman stressed that delays, financial issues and procurement questions could not be allowed to continue without answers. He said public money belongs to the people and must be protected.

The committee decided to summon officials from the Ministry of Finance and the Ministry of Planning at its next meeting for a full briefing on the Dasu transmission project, including its financing, expenditure, construction progress, delays, interest costs, procurement and steps being taken to ensure timely completion.