News Detail
Event Title: Senator Saifullah Abro, Chairman Senate Standing Committee on Economic Affairs presiding over a meeting of the committee at Parliament House Islamabad
Event Date: 2026-06-04
Senate Committee Seeks Accountability Over Delays in Dasu Hydropower and 765kV Dasu Transmission Line Project, Stresses Transparency in Foreign-Funded Development Schemes; ACE Flags High Bids in Akram Wah Canal Project and Moves for Cancellation to the World Bank.
The Senate Standing Committee on Economic Affairs, chaired by Senator Saifullah Abro, held a detailed meeting to review progress on the Dasu Hydropower Project (DHPP) and Mohmand Dam Hydropower Project, including their associated transmission lines, Bus Rapid Transit (BRT) projects, and alleged financial irregularities in several development initiatives including the Sindh Solar Energy Project (SSEP), where concerns were raised regarding the payment of approximately Rs. 6 billion in taxes allegedly deducted on the basis of fake invoices.
The committee was attended by Senators Haji Hidayatullah Khan, Rana Mahmood-ul-Hassan, Syed Waqar Mehdi, Rubina Khalid and Kamil Ali Agha, along with senior officials from the Economic Affairs Division, WAPDA, Power Division, Government of Sindh and other concerned departments.
The meeting commenced with a detailed briefing by WAPDA officials on the Dasu Hydropower Project (DHPP). Officials informed the committee that the revised PC-1 cost of the project stands at Rs1,737 billion and that the project will generate a total of 5,400 megawatts of electricity upon completion, making it the largest hydropower project in the country in terms of generation capacity.
The Committee was informed that in the first phase, 12 generating units will be installed with a cumulative generation capacity of 4,320 megawatts. Subsequently, three additional units will be added, each producing 360 megawatts, increasing total generation to 5,400 megawatts. Officials further stated that work is underway on a 765-kilovolt transmission line associated with the project. WAPDA officials told the committee that the project has secured full funding, including external financing, and that overall physical progress has reached 30 percent. The completion date under the approved PC-1 remains November 2028.
However, concerns were raised over repeated delays. Senator Waqar Mehdi observed that it appeared unlikely that the project would be completed within the stipulated timeframe. WAPDA officials acknowledged that the project had already faced two delays.
The Committee expressed serious displeasure over discrepancies in official records presented by the Ministry of Economic Affairs. Chairman Senator Saifullah Abro questioned why project documents mentioned a signing date of 2020 while officials simultaneously stated during the briefing that implementation had commenced in 2017.
“Your documents state that the Dasu Hydropower Project was signed in 2020, yet your briefing claims the project started in 2017. Such contradictions are unacceptable,” Senator Abro remarked.
Committee members also voiced concern over weak interdepartmental coordination. Senator Rubina Khalid criticized administrative inefficiencies and called for strict accountability mechanisms, urging authorities to establish timelines for performance and take disciplinary action against officials who fail to deliver. Senator Rana Mahmood-ul-Hassan stressed that future lapses should be reported to oversight institutions, while Chairman Senator Saifullah Abro reiterated his earlier recommendation for the establishment of a dedicated monitoring desk within EAD to evaluate tendering processes, minimise the risk of irregularities, and ensure effective follow-up of projects executed in collaboration with donor agencies.
During the briefing, Committee members examined financial implications of project delays. Senator Hidayatullah Khan noted that despite only 30 percent overall progress, approximately $46 million had already been paid in interest.
Chairman Senator Saifullah Abro noted that a loan of $485 million had been obtained for the project and that $46 million in interest payments had already been made. “You have already paid interest equivalent to nearly ten percent of the total loan amount,” Senator Abro observed, while questioning the financial burden that would arise if the project missed its completion deadline.
WAPDA attributed delays to security concerns, terrorist incidents, contractor performance issues and local protests. The explanation was challenged by committee members. Chairman Senator Saifullah Abro questioned why delays continued despite the absence of recent security incidents. Senator Rubina Khalid remarked that if major public gatherings and political rallies could take place in the area without security concerns, project execution should not be facing similar obstacles. The Chairman Committee noted with concern that despite the passage of eight years since the signing of the loan, work on the main dam and spillway had yet to commence. After detailed deliberations, the Committee unanimously decided and recommended that WAPDA provide a comparative study of previously constructed dams, including the Neelum-Jhelum Hydropower Project and the Tarbela Dam, for the Committee’s consideration.
The Committee also discussed the broader performance of the power sector. Senator Kamil Ali Agha expressed disappointment over WAPDA’s declining institutional performance despite availability of funds, stating that public expectations from the institution remained high.
Discussion then shifted to capacity payments and settlements payments made to the Independent Power Producers (IPPs). Chairman Senator Saifullah Abro demanded complete details regarding capacity payments, settlements with IPPs, debt obligations and interest payments. He further directed officials to provide complete details regarding all settlements reached with IPPs, including the total amount paid, outstanding liabilities, interest obligations and the officials responsible for negotiating the agreements. He further asked about an update on the auctioned public sector power plants. He observed that it had earlier been briefed that approximately Rs. 46 billion had been generated through the successful sale of scrap from the defunct thermal power plants. When Power Division officials responded that such information could not be disclosed without ministerial approval, Chairman Abro rejected the explanation.
“The minister is obliged to provide information to Parliament. If details are withheld, the committee will pursue the matter at the highest level and place all facts before the public,” he said. The Commitee recommended EAD formally issue a letter to the Power Division, seek the relevant details, and submit the same to the Committee.
The Committee subsequently reviewed progress on the Mohmand Hydropower Project. WAPDA officials informed members that the project faces funding constraints and is scheduled for completion in December 2028. The Commitee raised questions regarding the status of public donations collected under the national dam fund initiative. WAPDA officials informed the committee that Rs 24.5 billion remains with the federal government under the Federal Public Consolidated Fund. After detailed deliberations, the Commitee unanimously decided and directed EAD to ensure the presence of the relevant officials of the Government of Khyber Pakhtunkhwa associated with the project in the next meeting.
The Commitee also discussed the 765kV Dasu-Islamabad Transmission Line Project in detail. The officials informed the Commitee that said transmission line will be completed in 2028. While discussing the implementation of the recommendations made by the Commitee in its previous meeting, the Commitee expressed strong displeasure over the non-implementation of the recommendations. The Chairman Commitee underscored that absence of a transmission network at the time the Dasu Dam becomes operational will result in an estimated daily loss of approximately Rs. 2 billion. While acknowledging the views of the Chairman Committee, the NGC officer stated that, as per the agreement, 51 million units per day and about Rs. 2 billion will be charged per month from the department. The Chairman Committee questioned who will be held responsible for such losses. He expressed serious concern that the contract had been awarded to a disqualified firm that lacked the required expertise to complete the project. The Committee recommended that NGC provide details of the SOPs and testing procedures, along with the relevant reports, to the Committee within two days. The Committee further recommended that NGC impose liquidated damages on the contractor in the event of failure to complete the work within the stipulated timeframe, particularly in view of the fact that company had already remained unable to provide the design even after 20 months. The Committee expressed serious concern as to how the company will be able to complete the project within the stipulated completion date of June 2026, especially when the contract timeline extends up to 2028.
The Committee also held discussions on all ongoing and completed Bus Rapid Transit (BRT) projects financed through multilateral, bilateral and other donor agencies, including procurement of buses and machinery by the Government of Sindh. Members reviewed project proposals, tendering procedures, current implementation status, interest payments and financial obligations from 2002 to date. The Commitee directed the Transport & Mass Transit Department, GoS to complete the project on time.
The Committee further examined progress on recovery of allegedly illegal taxes about (Rs. 6 billion) paid to contractor and action taken against financial irregularities identified in the Sindh Solar Energy Project under World Bank financing. The Committee took serious notice of the non-recovery of the amount and directed the Energy Department, Government of Sindh, to expedite the recovery process and ensure recovery of the amount at the earliest.
The implementation status of the reports submitted by consultant NESPAK and consultant M/s Associated Consulting Engineers (ACE) Limited regarding the Akram Wah Canal (SWAT Project) was also reviewed. The Committee was surprised to note that a new clause had been introduced for evaluation of the financial bid, wherein technical marking appeared to have a decisive influence on the outcome, thereby affecting the selection of the lowest bidder on the basis of technical scoring. The Committee observed that such a mechanism appeared to favour certain companies through higher technical marks. The Consultant, ACE, was unable to satisfactorily respond to the queries raised by the Committee, particularly regarding the specific experience requirements and qualification criteria of the qualified firms.
With regard to the current status of the project, the Consultant, ACE, briefed the Committee that the bids received were significantly higher than the estimates, with Lot-I amounting to approximately Rs. 19 billion and Lot-II to approximately Rs. 17 billion, compared to the department’s engineering estimate of around Rs. 11 billion per lot. He further informed the Committee that the department had already communicated to the World Bank on 3rd May, 2026, regarding cancellation of the bidding process.
After detailed deliberations, the Commitee directed EAD to convene a meeting with the Irrigation Department, Government of Sindh, in this regard. The Committee also recommended that consultant M/s Associated Consulting Engineers (ACE) Limited provide complete details of the firms qualified under the specified evaluation criteria, along with copies of correspondence exchanged with the World Bank regarding the cancellation of the bidding process.