ISLAMABAD : Power Construction Corporation of China (PCCC) and Central Power Purchasing Agency Limited (CPGCL) are all set to sign agreement of Operation And Maintenance Works And Services of 747MW Combined Cycled Power Plant Guddu.
Thw project, owned by Central Power Generation Company Limited -a subsidiary of GENCO Holding Company Limited (GHCL), which is a state-owned enterprise operating under the administrative control of the Ministry of Energy (Power Division), Government of Pakistan.
Power Construction Corporation of China, is of the view that agreement will be a significant milestone in enhancing the efficiency and sustainability of power generation in Pakistan.
According to sources, the issue of transparency in awarding the contract to Chinese is likely to be taken by the parties which have failed to get the contract.
Guddu 747 is a hub of scams since years due to slackness of management and previous Boards and wromg decisions which also inflicted billions of rupees financial loss to the national exchequer .
Recently, the Chairman of the Board of Directors of Central Power Generation Company Limited (GENCO-II), Guddu, had sought the intervention of the Power Division to probe widespread irregularities and financial mismanagement within the company, which have reportedly caused billions of rupees in losses to the national exchequer.
According to sources, the Chairman, in a letter dated April 21, 2024, informed the Power Division that the Board—during its 178th meeting on September 12, 2024—had authorized the CEO and CFO to jointly complete formalities related to a major procurement. However, instead of seeking the Board’s approval for the final financial structure, the management unilaterally established a funded Letter of Credit (LC) worth Rs. 3.6 billion in favour of a supplier. The amount was invested in UBL without the Board’s approval—neither for the investment, the markup rate, the tenor, nor the associated terms and conditions.
The Chairman further expressed concern over the Board’s longstanding but unsuccessful efforts to secure insurance for the Guddu plant and requested the Ministry’s intervention. It is unclear if the issue of insurance has been sorted out or not.
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