LAHORE, April 18: Wapda’s failure to build eight transmission lines has resulted in over 125MW hourly line losses for the last five years — in monetary terms, a colossal loss of over Rs27 billion.

According to a report submitted by member power to the Wapda Chairman on Nov 27, 1999, (Diary No 15526), these lines were a must to improve voltage of 102 grid stations throughout the country and reduce line losses substantially.

Wapda had in the mid-nineties built five 220-KV grid stations at Ludewala, Bahawalpur, Bannu, Hyderabad and Shikarpur at the cost of US$ 73 million. The authority failed to utilize them because a transmission network of over 550 kilometre double circuit lines was not constructed.

The impact was studied by the Planning and Development Wing of Wapda and the study formed the basis of the recommendations of the Member Power to the chairman.

Interestingly, the loan — OECF (JBIC) Japan Loan PK-P43 of 12,022 million yen (US$ 115 million) — for these linen became available on July 17, 1996.

The Wapda could save, the report claimed, billions of rupees from voltage improvement and reduction in line losses. A detailed study of reduction in line loss for each transmission line has also been recommended.

It claimed that by constructing Daudkhel-Bannu transmission line, the authority could save 23 MW; the then current losses were 69 MW which would be reduced to 46 MW by building the line.

Similarly, 28 MW could be saved by building Gatti-Ludewala line; the then losses were 69 MW which would be reduced to 41 MW.

Constructing Muzaffargarh-Bahawalpur line could save another 37 MW; the sector was suffering a loss of 141 MW, which could go down to 104 MW.

The construction of Jamshoro-Hyderabad line could reduce losses by 8MW; present loss of 61 MW and expected 53 MW. The Guddu-Sibi line, the report said, could save 23MW as its present loss stood at 73 MW which could go down to 50 MW.

Rawata-Islamabad University transmission line could reduce the losses by 3MW by suppressing the present loss of 25 to 22 MW. The Peshawar-Shahibagh line could save 3MW and the Peshawar-Mardan line another 0.4MW.

According to the report, the total saving would be around 125.4 MW, which, if calculated in revenue terms, would save Rs3500 million annually. (The formula for line losses calculation is; 125x1000x720x12 — MWs multiplied by 1000 to turn them into kilowatt, multiplied by monthly 720 hours to turn them into monthly loss and multiplied by 12 to arrive at yearly loss).

The report also pointed out that in spite of availability of loan under OECF (JBIC) Japan Loan PK-P43 package, the award for constructing these transmission lines had been delayed for “many years.” This has resulted in power and financial loss due to low voltage at various 132-KV and 66-KV grid stations.

The case, the report lamented, was lying pending with the authority for more than six months and no action has been taken as yet.

Many presentations have been made but a decision is awaited. “I would, therefore, request the authority for decision on this project in the next meeting,” the then member power said.

The report also calculated loss of failure to built these line in financial terms; Rs3.5 billion yearly, and a compound loss of last five years to Rs23 billion (calculated on six per cent growth rate).

Another Rs4.68 billion could be added to it if next year loss, when line would be completed, could also be added to the tally.

Another risk, the former member power said, “is that all these grid stations have been lying useless for the last five years. Their components’ guarantee have expired and the condition of most of them is a big question mark now. Once they are energised, only then one would be sure about their working. Till then, one must pray for the safety of total investment of $73 million, or at least a part of it.”

Another factor hiking the price could be huge interest that Wapda had to pay on the loan, which could not be utilized for the last six years.

The Wapda has, after getting extension on loan twice and extending its limit up to 17-07-03, started constructing five, out of eight lines. Daud Khel-Bannu, Gatti-Ludewala, Muzaffargarh-Bahawalpur, Jamshoro-Hyderabad and Sibi-Guddu lines would be completed by October 2003. Still, one-and-a-half year to go.

When contacted to explain the reasons for the delay, a Wapda spokesman said: “Wapda intended to utilize in-house consultancy for curtailing unnecessary cost, but JBIC insisted on outside consultants.

“After lot of deliberations, Wapda appointed Nespak on 27-07-1998. The consultant prepared bidding document on 22-12-98. Bid opening for five lines was carried out on 24-03-99.

The consultant submitted evaluation report on 29-04-99 (within 35 days).

“The authority reviewed the case, approved and sent it to JBIC on 05-07-2000 (a gap of 15 months) to award contract to M/s Sichuan Electric Power Import & Export Corporation (SEPC), China.

“After hectic efforts by Wapda, JBIC gave no-objection certificate (NOC) to award of contract on 29-06-01 (another 11 months). Notification of Contract Award was issued on 15-12-01 (another six month delay) and contract was signed on 25-01-02.

“The contractor has started the work immediately after signing of contract. Survey and soil investigation and procurement of material is in progress.

“The load demand on the system has not increased as anticipated by Wapda during 1995.”

This claim again is belied by Wapda’s own generation figures that show that this demand increased by 10.2 per cent during the last three years — from 39.412 billion billed units to 43.448 billion units.

The spokesman claimed: “no financial loss has occurred due to delay in completion of the project.

However, it will greatly facilitate dispersal of power from Ghazi-Barotha Hydro-electric Power Project, expected to be completed during 2003-2004.

“The Bannu Grid station was completed in 1999, Shikarpur in 2000, Hyderabad in 2000, Bahawalpur in 2001 and Ludewala in 2001.”

This claim, however, clashes with the recommendations of the Wapda’s member power which clearly mentioned on 27-11-99 that all five grid stations have already been completed and construction of the transmission line delayed for many years.