Outsourcing of PEDO hydropower schemes sparks controversy

PESHAWAR: A dispute has emerged over the proposed outsourcing of operations at three recently commissioned hydropower projects of the Pakhtunkhwa Energy Development Organisation (Pedo), with more than 70 officials of the organisation formally approaching the provincial government over what they described as outside interference in key offices.

In a five-page letter sent to the Khyber Pakhtunkhwa secretary for energy and power, 75 senior officers and other employees of Pedo said they were placing on record their serious concerns and strong objections to what they called ongoing actions by external elements seeking to undermine decisions already approved by the policy board in its 46th and 13th meetings regarding an indigenous, or self, operation and maintenance model.

The officials alleged that important Pedo offices, including that of the chief executive officer, were functioning under undue outside influence and pressure, which they said was affecting independent decision-making and the implementation of policy board directives.

The letter said Pedo had recently commissioned three run-of-the-river hydropower schemes — Koto, Karora and Jabori — with a combined generation capacity of 62.8 megawatts.

According to the letter, the projects are currently being run during the defect liability period through in-house operational arrangements and are linked to the national grid under a take-and-pay power acquisition contract with Peshawar Electric Supply Company.

Officials seek implementation of board decisions

The employees said the Pedo Policy Board had adopted the Daral Khwar hydropower project in July 2020 as a pilot for the indigenous operation and maintenance model. They added that after what they described as the success of that arrangement, the board in its 13th meeting in September 2023 decided that Koto, Jabori and Karora would also be operated on a self O&M basis instead of through outsourcing.

The letter further stated that Pedo had already initiated recruitment for this purpose and that the hiring process was currently at the interview stage.

The officials asked the provincial government to ensure that the decisions taken in the 46th meeting of the Pedo Policy Board, later reaffirmed in the 13th meeting, along with related budgetary approvals, were implemented fully and without deviation. "Indigenous O&M model should not be altered, diluted or reversed at any stage. The model must instead be continued, strengthened and institutionalised as the standard framework of the Pedo projects," the officials said in their demands.

They also called for an immediate end to any outside influence in administrative or policy implementation matters and asked that all relevant forums, including human resources, administration, the CEO office and the executive committee, be allowed to function independently in line with approved policy board decisions.

They further sought directions for the restoration of institutional autonomy, continuity in policy and transparent, merit-based implementation mechanisms.

CEO says transition may require hybrid arrangement

Pedo Chief Executive Officer Anwarul Haq said the Malakand-III and Pehur hydropower projects developed by the organisation had previously been outsourced and operated by contractors. He said the Daral Khwar project was the first Pedo project to be run by the organisation’s own staff. "The experience of self-running of Daral Khawar was very successful," Haq added.

He said the newly commissioned Koto, Karora and Jabori projects were at present being operated on a defect liability period basis, under which the contractor carries the risk and cost.

Haq said Pedo would need trained personnel for the successful operation of the projects because they were large power houses generating several megawatts each. "We need at least 150 staff members to run these projects indigenously," he said, adding that recruitment was under way.

He said the organisation should adopt a hybrid model during the transition period. "I am sure the future of Pedo lies in indigenously operating its projects and only this way the organisation can develop and expand. However, this could not be done overnight," he said.

When contacted, Energy and Power Department Secretary Nisar Ahmad said there were no external influences at play in Pedo affairs.