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Al-Muhammadawi reveals a group of financial violations in the contract for the purchase of electric power in Basmaya .. and calls for a comprehensive investigation لتحقيق
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A member of the Parliamentary Energy Committee, MP Jamal Al-Muhammadawi, revealed a set of financial and administrative violations in the contract for the purchase of electric power from the Basmaya gas station, and called for a comprehensive investigation to determine the cause of the financial waste. He stressed the need to re-review and amend the contract to ensure the maximum interest of the Iraqi people and not to conclude such contracts in the future.
Al-Muhammadawi said in a press statement that "the investment contract No. (14) was concluded on (11/6/2014) for the purchase of electric power from the Basmaya gas station between the Ministry of Electricity and Mass Holding Group, and by reviewing the reports of the Federal Financial Supervisory Office and the documents available to us indicate the existence of A number of financial and administrative violations in the contract.
Among these violations, he added, "The total amounts spent on purchasing electric power from the Bismayah station, in addition to the amounts of fuel used to operate the station, are (3460094950) US dollars (three billion four hundred and sixty million four hundred and ninety thousand eight hundred and fifty-one dollars) for the period (from June 2017 until December of the year 2019) that is, during (one year and six months only), of which (1753682758) US dollars (one billion seven hundred fifty-three million six hundred and eighty-two thousand seven hundred and fifty-eight dollars) as amounts spent on purchasing energy and fuel for the station for the year 2019.”
And he continued, "The contract adopted the ( take or pay ) method ( take or give), as the rate of energy contracted to be purchased under the terms of the contract is (90%) of the total energy of the station, and the ministry is obligated to buy this energy even if it is not fully received, and the reasons belong to the ministry, which led To pay the value of the available energy that was not received and for the period from the date of operating the station to its date, as the formula led to the payment of more than (145 million dollars) for the period from (June 2017 to March 2019). For example, the Ministry bore the value of the available energy for the two months (November). and December 2019), amounting to more than (50 million US dollars), resulting from the failure to operate the contracted station due to the low supply of Iranian gas, as the ministry had to not adopt this method in order to preserve public money.
He pointed out that "the average price of a megawatt for a simple cycle amounted to (114.66) dollars in addition to the actual price of consumed gas, which is exaggerated and is approximately (four times) the cost of a megawatt approximately in the thermal cycle station (32) dollars, including the cost of fuel, workers' salaries and all expenses. Programmed and emergency maintenance work for the station.
He explained that "the Ministry of Electricity incurred more than (51 and a half million dollars) for the value of the available energy due to impurities associated with the fuel and the low pressure of the natural gas supplied to the plant under the Iranian contract, which led to limiting the loads at (1723817) megawatts, and the investing company had to install a mechanical filter system. ( scrubber ) from the date of operating the production units to get rid of the impurities and dirt associated with the gas supplied to the station and as is the case in the stations of the Ministry of Electricity, as the installation of this system is one of the duties of the investing company and according to the letter of the Ministry of Electricity No. (2288) on (25/7) 2017) as the company has not installed filters until (2019), it is necessary to recalculate the amounts disbursed to the company and recover them, since the impurities are not within the technical specifications of the gas supplied to the units, and their amount shall be charged to the Iranian natural gas supplying company.”
He stressed that "the minimum pressure of natural gas supplied to the station under the signed contract must not be less than (32) bar, according to the fuel center book No. (461) on (6/2/2019), but the Financial Supervision Bureau noted that the pressure was lower than (32) bar. And for repeated periods, which led to the limitation of the station’s loads, and thus the ministry charged the amounts of available energy.”
He added, "The ministry's failure to set up its own scales for the purpose of verifying the validity of the paid amounts, which are originally measured according to the company's scale. The Federal Financial Supervision Bureau, through a field visit, noted that there is no match between the main scale and the auxiliary scale, which causes the lack of knowledge of the accuracy of the scale operating in the station with There are no surveillance cameras to ensure that the scale is not tampered with.
Al-Muhammadawi indicated that "the Ministry of Electricity has endorsed the energy bills consumed inside the station in an amount of more than (11 million dollars), which includes energy consumption inside the station (pumps, cooling devices, auxiliary devices, all station accessories, and caravans of the investing company) for the period from (January). /2018 until March 2019) and through a field visit to the Federal Office of Financial Supervision on (30/4/2019) it was noted that the measurements were installed on the pressure side of the electrical transformers, so they read the energy supplied to the Ministry of Electricity, which does not include the energy consumed inside the station Note that the locations of the consumed energy measuring devices are not located in the area for measuring electrical energy mentioned in item (11.1- C) of the contract, which is located between the high voltage side and the national grid, and that this area has no energy consumption, and therefore the amounts disbursed to the investing company are not due.
He added, "It was stated in Clause (11.1- C ) of the draft contract that the buyer (Ministry of Electricity) does not bear the wages of energy consumed inside the station, while the above clause of the concluded contract indicated that the buyer bears these amounts, which resulted in the Ministry disbursing the amounts of consumed energy that were not due. The ministry also incurred more than (56 million dollars) for the amounts of the energy purchase lists prepared for the months (March, April, May) according to the decision of the Central Committee for review and approval of the referral according to its resolution No. (1) in session No. (58) containing the approval of the extension of operation Commercial to (9/2/2017) and the invoices are submitted on (9/3/2017) and according to this amendment, the grace period became (one month) instead of (3 months), as it was supposed to pay an amount of (162 thousand dollars) only, according to what was stated in the minutes Meeting No. (217) on (8/3/2017) issued by the Office of the Undersecretary for Transport and Distribution Affairs on the dues to be paid for the months above.
Al-Muhammadawi stated that “item ( iv-3.1) of the electric power purchase contract stipulated activating the lease contract and the water supply agreement with the company’s right to purchase a plot of land in the Basmaya area in clear violation of the text of Article (8/1/Third) of the system of selling and renting real estate, state lands and the public sector for investment purposes No. (7) of the year (2010), which stipulates that the land is to be leased to electrical projects at a rental allowance of (2%) of its annual rental allowance, noting that the land lease contract for building the station on it has not been concluded between Almas Holding Group and the National Investment Authority despite the completion of the station’s construction and the entry of energy supply Electricity commercially with the Authority addressing the General Secretariat of the Council of Ministers under its letter No. (P/2356) on (26/7/2018) to own the land for the station with an area of (340) acres, as well as the text of item (15,1) The buyer must, during the continuation of force majeure and natural force majeure and its effects, pay the price of energy for each megawatt of the contracted capacity, nor is he exempted from paying the value of the full energy for the approved period during the occurrence of a local political force or an external political force and its effects, and the ministry had to establish a text It is legal not to pay the amounts, because force majeure will prevent the project company from being obligated to produce electrical energy, and therefore it cannot supply the ministry with energy.”
He considered that "not taking into account the environmental impact resulting from the station (its distance from residential neighborhoods, taking into account the direction of wind and air movement), as well as the noise level caused by the station and the emissions of toxic gases ( hc, so2 no, co2).“Pending minutes).” Noting that “the Ministry of Electricity obtained the approval of the Council of Ministers to expand the Basmaya station by adding (1500) megawatts, according to their letter (7771) on (21/5/2019), and an annex to Contract No. (4) was signed on ( 9/6/2019) without taking the points below into consideration the inability of the national grid to discharge the additional produced energy, which will lead to the payment of sums of money for (the new available energy), which was not able to absorb the original energy (3000) megawatts, and the Ministry had to Reducing the prices of one megawatt for the simple and compound cycle, as well as not taking into account the treatment of problems, obstacles and weaknesses indicated in the reports of the Federal Financial Supervision Bureau (2/A, 2/B,3), in addition to that it did not take into account the quantities of gas supplied through the line The Iranian, which amounts to (35) months (May, June, July, AugustSeptember) and (25) are closed for the rest of the months, which will charge the Ministry huge sums of money for (the unreceived supplied energy).
Al-Muhammadawi recommended conducting an investigation into the observations, identifying the cause of this waste of public money, and the need to re-review and amend the contract to ensure the maximum interest of the Iraqi people and not to conclude such contracts in the future, because the investing companies drain the financial resources of the state and exploit those amounts in comprehensive maintenance of thermal electric power plants and upgrading their cards Productivity with the development of a plan for the establishment of new thermal power plants, which are characterized by low electric power of megawatts
[You must be registered and logged in to see this link.]
A member of the Parliamentary Energy Committee, MP Jamal Al-Muhammadawi, revealed a set of financial and administrative violations in the contract for the purchase of electric power from the Basmaya gas station, and called for a comprehensive investigation to determine the cause of the financial waste. He stressed the need to re-review and amend the contract to ensure the maximum interest of the Iraqi people and not to conclude such contracts in the future.
Al-Muhammadawi said in a press statement that "the investment contract No. (14) was concluded on (11/6/2014) for the purchase of electric power from the Basmaya gas station between the Ministry of Electricity and Mass Holding Group, and by reviewing the reports of the Federal Financial Supervisory Office and the documents available to us indicate the existence of A number of financial and administrative violations in the contract.
Among these violations, he added, "The total amounts spent on purchasing electric power from the Bismayah station, in addition to the amounts of fuel used to operate the station, are (3460094950) US dollars (three billion four hundred and sixty million four hundred and ninety thousand eight hundred and fifty-one dollars) for the period (from June 2017 until December of the year 2019) that is, during (one year and six months only), of which (1753682758) US dollars (one billion seven hundred fifty-three million six hundred and eighty-two thousand seven hundred and fifty-eight dollars) as amounts spent on purchasing energy and fuel for the station for the year 2019.”
And he continued, "The contract adopted the ( take or pay ) method ( take or give), as the rate of energy contracted to be purchased under the terms of the contract is (90%) of the total energy of the station, and the ministry is obligated to buy this energy even if it is not fully received, and the reasons belong to the ministry, which led To pay the value of the available energy that was not received and for the period from the date of operating the station to its date, as the formula led to the payment of more than (145 million dollars) for the period from (June 2017 to March 2019). For example, the Ministry bore the value of the available energy for the two months (November). and December 2019), amounting to more than (50 million US dollars), resulting from the failure to operate the contracted station due to the low supply of Iranian gas, as the ministry had to not adopt this method in order to preserve public money.
He pointed out that "the average price of a megawatt for a simple cycle amounted to (114.66) dollars in addition to the actual price of consumed gas, which is exaggerated and is approximately (four times) the cost of a megawatt approximately in the thermal cycle station (32) dollars, including the cost of fuel, workers' salaries and all expenses. Programmed and emergency maintenance work for the station.
He explained that "the Ministry of Electricity incurred more than (51 and a half million dollars) for the value of the available energy due to impurities associated with the fuel and the low pressure of the natural gas supplied to the plant under the Iranian contract, which led to limiting the loads at (1723817) megawatts, and the investing company had to install a mechanical filter system. ( scrubber ) from the date of operating the production units to get rid of the impurities and dirt associated with the gas supplied to the station and as is the case in the stations of the Ministry of Electricity, as the installation of this system is one of the duties of the investing company and according to the letter of the Ministry of Electricity No. (2288) on (25/7) 2017) as the company has not installed filters until (2019), it is necessary to recalculate the amounts disbursed to the company and recover them, since the impurities are not within the technical specifications of the gas supplied to the units, and their amount shall be charged to the Iranian natural gas supplying company.”
He stressed that "the minimum pressure of natural gas supplied to the station under the signed contract must not be less than (32) bar, according to the fuel center book No. (461) on (6/2/2019), but the Financial Supervision Bureau noted that the pressure was lower than (32) bar. And for repeated periods, which led to the limitation of the station’s loads, and thus the ministry charged the amounts of available energy.”
He added, "The ministry's failure to set up its own scales for the purpose of verifying the validity of the paid amounts, which are originally measured according to the company's scale. The Federal Financial Supervision Bureau, through a field visit, noted that there is no match between the main scale and the auxiliary scale, which causes the lack of knowledge of the accuracy of the scale operating in the station with There are no surveillance cameras to ensure that the scale is not tampered with.
Al-Muhammadawi indicated that "the Ministry of Electricity has endorsed the energy bills consumed inside the station in an amount of more than (11 million dollars), which includes energy consumption inside the station (pumps, cooling devices, auxiliary devices, all station accessories, and caravans of the investing company) for the period from (January). /2018 until March 2019) and through a field visit to the Federal Office of Financial Supervision on (30/4/2019) it was noted that the measurements were installed on the pressure side of the electrical transformers, so they read the energy supplied to the Ministry of Electricity, which does not include the energy consumed inside the station Note that the locations of the consumed energy measuring devices are not located in the area for measuring electrical energy mentioned in item (11.1- C) of the contract, which is located between the high voltage side and the national grid, and that this area has no energy consumption, and therefore the amounts disbursed to the investing company are not due.
He added, "It was stated in Clause (11.1- C ) of the draft contract that the buyer (Ministry of Electricity) does not bear the wages of energy consumed inside the station, while the above clause of the concluded contract indicated that the buyer bears these amounts, which resulted in the Ministry disbursing the amounts of consumed energy that were not due. The ministry also incurred more than (56 million dollars) for the amounts of the energy purchase lists prepared for the months (March, April, May) according to the decision of the Central Committee for review and approval of the referral according to its resolution No. (1) in session No. (58) containing the approval of the extension of operation Commercial to (9/2/2017) and the invoices are submitted on (9/3/2017) and according to this amendment, the grace period became (one month) instead of (3 months), as it was supposed to pay an amount of (162 thousand dollars) only, according to what was stated in the minutes Meeting No. (217) on (8/3/2017) issued by the Office of the Undersecretary for Transport and Distribution Affairs on the dues to be paid for the months above.
Al-Muhammadawi stated that “item ( iv-3.1) of the electric power purchase contract stipulated activating the lease contract and the water supply agreement with the company’s right to purchase a plot of land in the Basmaya area in clear violation of the text of Article (8/1/Third) of the system of selling and renting real estate, state lands and the public sector for investment purposes No. (7) of the year (2010), which stipulates that the land is to be leased to electrical projects at a rental allowance of (2%) of its annual rental allowance, noting that the land lease contract for building the station on it has not been concluded between Almas Holding Group and the National Investment Authority despite the completion of the station’s construction and the entry of energy supply Electricity commercially with the Authority addressing the General Secretariat of the Council of Ministers under its letter No. (P/2356) on (26/7/2018) to own the land for the station with an area of (340) acres, as well as the text of item (15,1) The buyer must, during the continuation of force majeure and natural force majeure and its effects, pay the price of energy for each megawatt of the contracted capacity, nor is he exempted from paying the value of the full energy for the approved period during the occurrence of a local political force or an external political force and its effects, and the ministry had to establish a text It is legal not to pay the amounts, because force majeure will prevent the project company from being obligated to produce electrical energy, and therefore it cannot supply the ministry with energy.”
He considered that "not taking into account the environmental impact resulting from the station (its distance from residential neighborhoods, taking into account the direction of wind and air movement), as well as the noise level caused by the station and the emissions of toxic gases ( hc, so2 no, co2).“Pending minutes).” Noting that “the Ministry of Electricity obtained the approval of the Council of Ministers to expand the Basmaya station by adding (1500) megawatts, according to their letter (7771) on (21/5/2019), and an annex to Contract No. (4) was signed on ( 9/6/2019) without taking the points below into consideration the inability of the national grid to discharge the additional produced energy, which will lead to the payment of sums of money for (the new available energy), which was not able to absorb the original energy (3000) megawatts, and the Ministry had to Reducing the prices of one megawatt for the simple and compound cycle, as well as not taking into account the treatment of problems, obstacles and weaknesses indicated in the reports of the Federal Financial Supervision Bureau (2/A, 2/B,3), in addition to that it did not take into account the quantities of gas supplied through the line The Iranian, which amounts to (35) months (May, June, July, AugustSeptember) and (25) are closed for the rest of the months, which will charge the Ministry huge sums of money for (the unreceived supplied energy).
Al-Muhammadawi recommended conducting an investigation into the observations, identifying the cause of this waste of public money, and the need to re-review and amend the contract to ensure the maximum interest of the Iraqi people and not to conclude such contracts in the future, because the investing companies drain the financial resources of the state and exploit those amounts in comprehensive maintenance of thermal electric power plants and upgrading their cards Productivity with the development of a plan for the establishment of new thermal power plants, which are characterized by low electric power of megawatts
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