A Chinese firm has delayed the commencement of operation and maintenance of a power plant in Pakistan due to differences with a state-run power generation company.
In February last year, the Northern Power Generation Company Limited (NPGCL) had signed a 10-year contract with China’s Hydro Electric Power System Engineering Company (HEPSEC) for operation and maintenance (O&M) of the Nandipur project, reported Dawn.
According to the letters exchanged, both sides expressed concern over various issues before the commencement of the O&M services of the power plant.
Zafar Abbas, the senior official of the energy ministry (power division), however, rejected the delay and said: “They (the Chinese company) have been mobilised to the site for O&M services.”
The letter also mentioned that some matters were pending from both the sides such as – provision of registration by the Pakistan Engineering Council (PEC), operator’s insurance policy, performance test procedure, computerised maintenance management system, approvals from local authorities, initial performance tests, updated list of spare parts, owner’s insurance, internal security, initial spare parts and consumables, accommodation and offices and supervisory engineers.
“It is further intimated that the current status of completion of the mobilisation services reveals further delays; hence this office has no option left other than invoking the mobilisation LDs as stipulated in the contract. Nevertheless, the mobilisation advance payment guarantee, expiring on October 21, necessitates further extension due to the aforementioned discrepancies,” the letter read.
Meanwhile, HEPSEC has submitted the provisional registration certificate and operator’s insurance for the power plant. For the O&M contract, the operator will be apprised accordingly as soon as they earn the commencement.
However, Gencos Holding Company Limited Chief Executive Officer Muhammad Imran claimed most of the differences had been sorted, regarding the commencement of the O&M services of the Nandipur project.
“We have fixed January 6 as a provisional date for getting the O&M services initiated by the Chinese firm,” said Imran.
He also acknowledged the delay of the completion of the process to convert the plant to gas was also one of the reasons.
“Since the conversion work is over, the Chinese firm would soon be able to carry out tests related to O&M at the gas-fired plant,” Imran added.
Earlier, Pakistan has summoned the US ambassador in a rare public rebuke after Donald Trump lashed out at Islamabad with threats to cut aid over “lies” about militancy.
Pakistan’s foreign office summoned David Hale on Monday to explain the US president’s comments, media said. A spokesperson for the US embassy in Islamabad confirmed that the meeting took place.
In a withering attack, Trump tweeted on Monday that the United States had “foolishly” handed Pakistan more than $33bn in aid in the last 15 years and had been rewarded with “nothing but lies and deceit”.
“They give safe haven to the terrorists we hunt in Afghanistan, with little help. No more!” Trump wrote on Twitter.
On Tuesday, Pakistan’s prime minister, Shahid Khaqan Abbasi, will chair a cabinet meeting that will focus on Trump’s tweet, while on Wednesday the country’s top civilian and military chiefs will meet to discuss deteriorating US ties.
Relations between the US and Pakistan have been strained for years over Islamabad’s alleged support for Haqqani network militants, who are allied with the Afghan Taliban.
Washington has signalled that it will cut aid and enact other punitive measures if Islamabad does not stop helping or turning a blind eye to the Haqqani network militants who carry out cross-border attacks in Afghanistan.
Islamabad has rejected suggestions it is not doing enough in the war against militancy, saying that since 2001 it has suffered more than the US with tens of thousands of casualties caused by Islamists.
Pakistan’s foreign minister, Khawaja Asif, dismissed Trump’s comments as a political stunt born out of frustration over US failures in Afghanistan, where the Taliban has been gaining territory and carrying out major attacks.
“He has tweeted against us [Pakistan] and Iran for his domestic consumption,” Asif told Geo TV on Monday. “He is again and again displacing his frustrations on Pakistan over failures in Afghanistan as they are trapped in a dead-end street in Afghanistan.”
He said Pakistan did not need US aid.
A US national security council official on Monday said the White House did not plan to send $255m in aid to Pakistan “at this time” and said “the administration continues to review Pakistan’s level of cooperation”. In August, the administration said it was delaying the payment.
