ISLAMABAD: The Senate Standing Committee on Economic Affairs has expressed serious concern over delays, alleged financial irregularities and weak project management in the 765kV Dasu-Islamabad Transmission Line Project, noting that Rs9 billion has already been paid in interest against Rs76 billion received from donors.
The committee met under the chairmanship of Senator Saifullah Abro to review progress on power sector projects financed by multilateral development agencies, with particular focus on the Dasu-Islamabad transmission line project, comprising Lots I to IV.
The Economic Affairs Division briefed the committee on project proposals, the tendering process, physical progress, imported equipment and hardware, and testing procedures being introduced in Pakistan for 765kV transmission infrastructure.
Senator Abro expressed serious concern over alleged irregularities in projects under review and the continued emergence of corruption allegations in the power sector despite repeated efforts to improve transparency and accountability.
He stressed that public funds must be protected and reminded officials that they were responsible for safeguarding taxpayers’ money.
Rs9bn interest paid on donor funding
During the discussion, the committee examined the project’s financing position and interest costs. Senator Abro noted that Rs76 billion had been received from donors, while Rs9 billion had already been paid as interest, representing a significant financial burden on the project.
He questioned the authorities over the implications of delays and asked why substantial financing costs were being incurred while physical progress remained slow.
Power Division officials informed the committee that Rs19 billion had been sought from the government for the Dasu project during the previous year, against which Rs17 billion was allocated. A further Rs12 billion was released only a few days before the meeting.
Senator Kamil Ali Agha questioned the financial impact of the delayed release and asked how much additional interest would be payable on the recently released Rs12 billion.
Slow construction raises alarm
Senator Abro expressed dissatisfaction with the pace of construction of the Dasu transmission line, describing progress as extremely slow.
He questioned how the project could be completed within two years if construction continued at the existing pace.
The committee chairman also raised concerns over procurement and delivery of imported equipment and hardware before the corresponding infrastructure had been constructed.
He questioned the rationale for bringing and storing equipment at project sites without the required towers being in place, saying such practices raised concerns over project planning, utilisation of funds and equipment management.
Recovery and transparency issues
The committee also questioned officials regarding the recovery of Rs26 million reportedly linked to a case involving a fraudulent will document.
Officials told the committee that Rs10 billion had been recovered as part of the broader recovery process. Senator Abro questioned why the outstanding amount in the specific matter had not yet been recovered.
He also expressed concern over repeated denial of information despite requests submitted under the Right of Access to Information framework.
The chairman initially proposed referring the matter to the Federal Investigation Agency (FIA) for investigation. However, the committee decided to give the department a final opportunity to formally approach the relevant authorities and obtain a detailed briefing before deciding further action.
Concerns over expenditure and project oversight
The committee was informed that a high-level committee had been constituted to monitor the transmission project associated with the Dasu Dam, with several federal ministers included in the monitoring body.
Officials also informed lawmakers that expenditure within the Power Division was exceeding allocations for certain activities.
Senator Abro expressed concern over the gap between allocated funds, actual expenditure and physical progress, stressing that projects financed through foreign assistance require strict oversight to ensure transparent and efficient use of donor funds.
The committee noted that it had repeatedly asked the Ministry of Finance and Ministry of Planning to ensure proper protection and utilisation of projects being implemented through foreign funding.
NESPAK asked to clarify billing and payments
The committee also sought detailed information from NESPAK regarding step-by-step activities under the relevant project components and the payment mechanism for Lots I to IV.
Officials explained that project activities were processed through different billing arrangements, with work under individual components reflected through separate billing processes.
The committee decided to seek further clarification on the relationship between physical progress, procurement, billing and payments under each lot to determine whether expenditure was commensurate with work completed on the ground.
Senator Abro directed officials to provide complete and updated information on all projects under review and stressed that delays, financial irregularities, procurement concerns and unresolved accountability issues could not be allowed to continue.
The committee decided to summon officials from the Ministry of Finance and Ministry of Planning at its next meeting for a comprehensive briefing on the Dasu transmission project, including its financing, expenditure, physical progress, delays, interest costs and measures being taken to ensure timely completion and efficient utilisation of foreign funding.
Story by Tahir Amin
