A recently concluded probe conducted by the Imran Khan government into the anomalies of China-Pakistan-Economic-Corridor has revealed that six China-funded power projects under CPEC has resulted in huge profits for Chinese firms setting up the plants through over invoicing and tariff charges compared to market rates.
ET has a copy of the probe report which also alleged that government-to-government deals signed under CPEC had unduly favoured Chinese investors. One of the six power projects was found to be 234 per cent expensive than a similar project in India, the study revealed. None of these projects were offered under bidding as it is being funded by a single country, according to inquiry report.
The inquiry report revealed that the $1.7 billion power transmission line project of the China-Pakistan Economic Corridor (CPEC) was 234% expensive than a similar project in India with better technology.
The NTDC and State Grid Cooperation of China (SGCC) signed a cooperation agreement in April 2015 for development of 4,000MW, ±660 kV Matiari to Lahore High Voltage Direct Current (HVDC) Transmission Line. This project is included in the priority projects under the CPEC.
The report noted that the National Electric Power Regulatory Authority (Nepra), after the end of the proceeding, approved a total project cost of $1.7 billion in November 2016. Within the approved cost, $1 billion was approved for converter stations. Since the project was awarded under CPEC through government-to-government agreement, no bidding was carried out for the award of this project, according to the inquiry report.
However, a similar project was awarded in January 2017 in India through international competitive bidding at the time when Lahore-Matiari HVDC project approvals were given. The winning bidder was ABB from Zurich, the report points out. The Indian transmission line project is high in specification as well as length and is still cheaper by $360 million, according to the committee.