Rental power plants violated contracts: Supreme Court

ISLAMABAD — The Supreme Court of Pakistan (SC) has questioned the release of mobilisation funds to the rental power plants (RPPs), given that the companies failed to meet their contractual obligation to import machinery.

By (Our Correspondent)

Published: Sat 5 Nov 2011, 12:05 AM

Last updated: Thu 21 May 2020, 1:04 PM

A division bench headed by Chief Justice Iftikhar Muhammad Chaudhry is hearing a suo motu case, coupled with two identical petitions, alleging corrupt practices in the awarding of contracts for RPPs.
Counsel for the Gulf Power Company, Ali Zafar, argued that the government signed an agreement with his client after reviewing its performance. After the contract was signed, he said, all machinery was transferred to Pakistan but the mobilisation advance was not paid and machinery at the site started to rust.
Zafar also claimed that investors in the Gulf Power Company “love” Pakistan, the CJ responded with a more pragmatic point of view: “An investor puts in money not for the love of a country but to earn a profit.”
Abdul Hafeez Pirzada, counsel for the Reshman and Techno E Power Company, said that his client fulfilled all preconditions and won the contract through open tender.
After winning the contract, the company was paid Rs4 billion as a mobilisation advance, Pirzada said, adding that Water and Power Development Authority (Wapda) praised the company in its report, which was presented in the court; however, no further funds were granted to the company.

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