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, prompting serious concern in the Senate over the rising cost of delays and the handling of project funds and equipment.
The Senate Standing Committee on Economic Affairs questioned the pace of the 765kV Dasu-Islamabad Transmission Line Project and sought clear answers regarding 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 schedule if construction continued at the existing speed.
The chairman also expressed concern over the financial burden caused by delays. The committee was informed that 12 per cent 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 been spent on interest payments.
The committee also reviewed the government’s funding for the project. Officials informed the committee that Rs19 billion had been sought 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 Rs12 billion and asked officials how much interest would have to be paid because of the financing.
The committee also raised questions about 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 constructed.
He observed that bringing and storing equipment before basic construction was ready raised questions about planning, expenditure and the proper utilisation of public funds.
The committee was also informed that a high-level committee had been constituted to monitor the Dasu transmission line project linked with the Dasu Dam. Several federal ministers are members of the monitoring body.
Senator Abro voiced concern over the gap between funds being allocated, money being spent and the actual work visible on the ground. He stressed that foreign-funded projects required strong supervision to ensure that donor money was 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 asked why the remaining Rs26 million had not yet been recovered. He also expressed concern that private companies had recovered their money while the Government-to-Government part of the matter remained 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 referred to the Federal Investigation Agency, but the committee decided to give the department one final chance to formally seek a detailed briefing before deciding the next course of action.
The committee also sought detailed information from NESPAK about work being carried out under different components of the Dasu project and the manner in which 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 required clearer information to determine whether payments and spending matched the actual physical work completed.
The chairman stressed that delays, financial issues and procurement questions could not be allowed to continue without answers. He said public money belonged 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 measures being taken to ensure timely completion.
Copied From: Rs76 billion donor funds, Rs9 billion interest paid on Dasu project
