Andritz Hydro could not get the contract through competitive bidding as it earlier lost the tender by a big margin in Tarbela’s fourth extension hydropower project. Its bid amounted to more than
Andritz Hydro, in collusion with Wapda and its chairman
Shah has signed a consent letter with OEKB, (
Sources familiar with the matter, however, said it is unlikely that the
The economic affairs division has raised several objections in awarding this contract to Andritz Hydro. The contents of an office memorandum titled “Austrian Financing for Tarbela 5” reads that the undersigned is directed to refer to the water and power ministry’s letter on the captioned subject and to say that in accordance with the planning commission’s guidelines, foreign donors cannot be approached for financing a project without the approval of the project of PC-I.
It also says that in cases of emergency, the clearance of the concept should be sought from the appropriate forum,
“I have been directed to request that this division may please be informed as soon as the concept clearance is accorded by the CDWP,” the letter stated. “I have been further directed to request that the comments may please be provided on the urgency for initiating the negotiation with
After receiving the letter, the water and power ministry also sought the views of the Wapda chairman regarding the decision to exclude others. Instead of following directions, Shah issued a consent letter in favour of the Austrian firm.
The extracts of the letter signed by Shah and board member of OEKB Rudolf Scholten, stated that the government of
One of these projects is the Tarbela fifth extension project where OeKB , on behalf of the Austrian government, is willing to consider financing in conjunction with the
While talking to
According to him, the Tarbela fifth extension hydropower project is of immense importance in view of the acute electricity shortages in the country. Therefore, all activities are being undertaken simultaneously for its execution in the shortest possible time.
The CDWP has accorded the project approval concept in its meeting in mid-January this year, while the study is being carried out as per the relevant rules, Wapda spokesman said.
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