KARACHI: Water and Power Development Authority (Wapda) paid at least Rs80 billion in outstanding net hydel profits to Punjab and Khyber Pakhtunkhwa, officials said on Monday, bringing an end to a conflict between the centre and the provinces.
“Wapda paid Rs55 billion in net hydel profits (NHP) to Punjab and Rs25 billion to Khyber Pakhtunkhawa (KPK),” said a ministry of power official, who was privy to a meeting headed by the Prime Minister Shahid Khaqan Abbasi on issues related to power sector and net hydel profits at Prime Minister’s Office in Islamabad.
“We have settled all the arrears in line with the commitment… we are regularly paying NHP to KPK,” the official said.
Wapda’s senior officials briefed the Prime Minister, during the meeting, about the updated situation vis-à-vis payments made so far to Punjab and Khyber Pakhtunkhwa against net hydel profit claims.
“Wapda has met all its NHP obligations even when it has not received the funds from central power purchasing agency after determination by Nepra (National Electric Power Regulatory Authority),” a PM office’s statement quoted a Wapda’s official as saying. “The Prime Minister directed that factual position be presented before the Council of Common Interests during its next meeting.”
Minister for Power Awais Leghari, Finance Advisor Miftah Ismail, Special Adviser to PM Zafar ullah Khan, federal secretaries of concerned divisions and senior officials attended the meeting.
The power ministry’s official told The News that the authority raised the funds to settle NHP arrears from bank loans and “was allowed by the Nepra to adjust the loan payment through tariffs adjustment”.
In December last year, Economic Coordination Committee of the cabinet was told that Wapda owed Rs80.2 billion, including Rs24.6 billion in NHP to government of KPK and Rs17.6 billion in NHP and Rs38.1 billion in lieu of promissory note en-cashed by the Punjab government from Allied Bank. The re-payment on promissory note by Wapda was due on December 31, 2017. ECC allows Wapda to raise loans from local banks to clear its immediate liabilities.
An official estimate said the authority owed around Rs70 billion, for the period of 2005/06 and 2014/15, in regular NHP and arrears to KPK government, while the outstanding amount, for the decade, stood at of Rs83 billion for Punjab. Government has already granted regular NHP at Rs1.1/kilowatt-hour for 2016-17 for the provincial government.
Wapda official also briefed the Prime Minister, during the meeting, on additional power which would be added to the national grid during the coming months from various hydel power projects, including Tarbela-IV, Neelum-Jhelum and Golen Gol.
The Prime Minister was also briefed on demand and supply situation and the power generation projections from March till October 2018.
The Prime Minister directed Power Division to brief the federal cabinet on current and anticipated power situation in its next meeting.
Abbasi directed the minister for power to personally visit and take provinces on-board for taking effective measures for reducing electricity losses and improving recovery situation of power dues.