TI Pakistan Raises Red Flag Over Rs15bn Sindh Solar Project, Seeks Probe Into Alleged Procurement Violations

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Transparency International Pakistan (TI Pakistan) has urged Sindh Chief Minister Syed Murad Ali Shah to launch an urgent investigation into alleged serious violations of public procurement rules in the award of a Rs15 billion solar home solution project, which included Rs6 billion in advance payments to the contractor.

In a letter dated September 10, 2025, TI Pakistan said it received a complaint alleging that the Sindh Energy Department awarded the contract directly to NRTC Energies (Pvt) Ltd without competitive bidding, in violation of Sindh Public Procurement Regulatory Authority (SPPRA) Rules 2010.

The project, titled “Solar Home System (SHS) Kits for Poor Families (On-Grid and Off-Grid) in Sindh under Special Initiatives,” aims to supply 130,000 on-grid and 120,000 off-grid solar home kits to poor households.

According to TI Pakistan, the agreement was signed on April 16, 2025, and involved direct contracting under the guise of a government-to-government (G2G) deal. The watchdog claimed that NRTC Energies, despite its name, is a privately controlled entity and therefore does not qualify as a state-owned enterprise, a key requirement for G2G agreements under amended PPRA rules of June 2021.

The rules allow direct contracting without open tendering only in time-sensitive projects of public interest between government agencies and state-owned entities. TI Pakistan said that multiple private suppliers in the open market could provide solar home systems, so the emergency exemption under SPPRA Rule 21(1) did not apply in this case.

The watchdog also highlighted concerns about transparency, noting that NRTC Energies failed to disclose its ultimate beneficial owners as required by SECP’s Anti-Money Laundering and Countering Financing of Terrorism Regulations 2018 and FATF guidelines.

TI Pakistan warned that bypassing competitive bidding “opens the door to non-transparent practices and potential misuse of public funds,” undermining the integrity of Sindh’s procurement systems.

After reviewing the complaint and relevant rules, TI Pakistan said the allegations prima facie appear valid and urged the Sindh CM to cancel the agreement if violations are confirmed. It recommended reissuing the tender through open competitive bidding to ensure transparency and savings to the public exchequer.

The organization clarified it was acting as a whistleblower under Article 19-A of the Constitution, which guarantees citizens the right to access information about public sector activities. Copies of the letter were also sent to the Sindh chief secretary, provincial energy minister, SPPRA managing director, and the registrar of the Sindh High Court.

TI Pakistan concluded that the case represents a critical test of the government’s commitment to accountability and responsible use of taxpayer funds, calling for strict adherence to procurement laws to prevent corruption.

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