Nandipur Power Project to be completed within 18 months: Shahbaz

Punjab Chief Minister Muhammad Shahbaz Sharif visited Nandipur Power project near Gunjrawala today (Tuesday)‚ where he was given a detailed briefing.

Later‚ talking to newsmen‚ he said almost 95 percent machinery of the project has reached the site from the Karachi port and the construction work will start soon.

He said he has asked the Chinese firm constructing the project to complete the work before the stipulated time of 18 months.

Shahbaz Sharif demanded the NAB to bring to justice the people involved in the delay of this important power project‚ as it has caused huge loss to national exchequer.

About Nandipur Power Project 

Nandipur Power Project is an under construction combined cycle thermal power plant located at Nandipur near Gujranwala, in the province of Punjab in Pakistan. Being constructed by the China Dongfang Electric Corporation, the project is estimated to be completed by December 2014. Upon completion, the project will generate 425 MW’s of electricity. The estimated cost of the project is Rs.57.38 billion ($574 million).

In January 2008, Pakistan Electric Power Company (PEPCO) signed a Rs. 23 billion ($329 million) contract with Dong Fang Electric Corporation of China to construct the Nandipur Power Project and paid it a 10 per cent down payment. By mid-2010, much of the work at this power project was complete and it was expected be finished on schedule in April 2011. However, the project suffered delays as the summary, sent by the Ministry of Water and Power for legal opinion of the Ministry of Law & Justice, remained pending with the latter for two years from March 2010 to March 2012. As a result, machinery worth $85 million remained stuck at the Karachi Port for over two years. In September 2012, the president of Dongfang Electric Corporation Zhang Guorong terminated the contract for the construction of the Nandipur power project, saying his company had suffered colossal losses because machinery worth $85 million had been awaiting clearance at the Karachi Port. The company also demanded $40 million as compensation for losses suffered because of depreciation and damages on machinery stranded at the Karachi Port for the two years.

In June 2013, Pakistan’s Ministry of Water and Power started renegotiating the contract with Dongfang Electric Corporation to resume work on the Nandipur Power Project.^[5] After days of negotiations, the firm agreed to resume work on the power station. On July 8, 2013 engineers of Dongfang Electric Corporation arrived in Karachi to inspect the machinery lying at the Karachi Port and secure its release. Later, work on the Project was restarted.

The cost of project was reported to have risen from Rs. 23 billion ($329 million) to Rs. 57.38 billion ($574 million