LAHORE, Nov 6: Pakistan faces the prospect of loadshedding from June 2003 unless the Italian contractors, who abandoned the Ghazi-Brotha hydro-electric power project on Oct 18, return quickly to resume work.

By June 2003, the Water and Power Development Authority expects power demand to increase beyond the total installed capacity in the country — including the independent power units. It had counted on 1,450 mega watts project to meet the growing demand. According to the project schedule, first of the five 290 megawatt generators was to be commissioned in June 2002. The remaining were to follow after a quarter each.

Once the Italians left, however, given even the assurances of impregnable security, the schedule became irrelevant. In fiscal terms, delay in the commissioning of project would cost Rs774.8 million a month starting June 2002. The cost would increase by a similar amount every quarter to reach Rs3.874 billion a month in June 2003. Beyond that point, the Wapda will lose Rs46.48 billion a year at the current tariff.

Talking to Dawn, an exasperated Wapda official said the contractors’ decision was not justifiable. He also said the project could not possibly be completed in time any more. “This seems to be an impossibility. The Italians have used the Afghan war as abandon it. The province of the Punjab, where the project lies, was not declared a security-risk zone even by the Italian government.”

The government of Pakistan and the Wapda have been trying their best to convince the Italians to return, but without any success so far. The Wapda official said the project was a four-way joint venture. He said the Authority was also trying to convince the remaining three partners, including two local firms, to resume work.

A major concern for the Wapda, he said, was that the project design did not allow for an idle tunnel. Once completed the 52-kilometre canal would risk quick deterioration unless used. Given that almost 70 per cent of the $2 billion project cost has already been incurred, the government of Pakistan has no option but to get it completed.

A Pakistan Electric Power Company official, meanwhile, provided another view. “While most of the blame, no doubt, lies with the Italians, the present management of the project cannot be absolved of all responsibility. Its attempts to enforce its own standards of discipline on foreigners was reported to have caused panic among the Italians.” “Who,” he asked, “wants to abandon a contract when it is nearing completion?”

Asked what would happen if the Italians cannot be persuaded to return, a Wapda official said a new contractor might be found. “The Italians did not have a very high-tech job. It was just excavation and lining,” he said. He conceded, however, that finding a new contractor would increase the project cost and may take several months. “Unfortunately, there may be no alternative.” He said the government had considered assigning the job to the Frontier Works Organization but the idea had been dropped in view of certain reservations.