WAPDA was established by an Act of Parliament in 1958 for optimum development of water and power resources of the country and its sustainable economic growth. WAPDA is being managed by an Authority which comprises Chairman and three Members for Water, Power and Finance Wings.
Since its creation WAPDA has constructed Indus Basin Projects such as Tarbela and Mangla dams, five barrages (including Chashma Barrage) and eight inter-river link canals for transfer of water from western rivers to eastern rivers. The Indus Basin Replacement Works (IBRP) were followed by several development works including Simly, Rawal and Khanpur dams, Chashma Right Bank Canal, Pehur High Level Canal, SCARP projects for water logging and salinity control, thermal power stations, hydropower stations including 1,450 MW Ghazi Barotha Hydropower Project and extensions of Tarbela and Mangla Hydropower stations alongwith power transmission and distribution networks all over the country. All these projects were completed without cost and time overruns.
In 2001, WAPDA prepared its Vision 2025 Program and proceeded to complete its first phase projects comprising five dams (Mirani, Sabakzai, Mangla Raising, Satpara and Gomal Zam), two canals (Phase-I of Greater Thal Canal and Rainee Canal) and four Run of River (ROR) hydropower stations (Allai, Khan, Duber and Jinnah). Presently, hydel generation being produced is 6,902 MW and the annual energy generation is more than 33,000 GWh.
In 2007, WAPDA was unbundled and its present mandate is to develop water and hydropower resources. Transmission and distribution of power is now the responsibility of PEPCO, NTDC, DISCOs whereas thermal generation is now the responsibility of GHCL.
WAPDA Projects WAPDA has several water and hydropower projects under construction which include Neelum Jhelum (969 MW), Tarbela 4th Extension (1,410 MW), Dasu (4,320 MW), Keyal Khwar (128 MW), Golen Gol (106 MW), Kurram Tangi Dam (83.4 MW), Diamer Basha Dam (4,500 MW) and Mohmand Dam (800 MW). WAPDA is also building Nai Gaj Dam and Phase-I of Kachhi Canal.
The Projects which are ready for construction are Bunji Hydropower Project (7,100 MW), Tarbela 5th Extension (1,410 MW) and Harpo Hydropower Project (34.5 MW).
In addition, a dozen other hydropower projects are under study including Patan (2,200 MW), Thakot (4,000 MW) etc.
Sources of Financing:
For implementation of its projects WAPDA uses different sources of financing which include the following:
i) Sale of WAPDA Hydel Power @ 2.17/KWH
ii) Cash Development Loans (CDLs).
iii) Foreign Loans: The financing agencies including World Bank, Asian Development Bank, European Investment Bank, KFW-Germany, JICA-Japan, Asian Infrastructure Investment Bank. China, Islamic Development Bank, Saudi Fund, Kuwait Fund & Opec. Funds are procured by the Federal Government and then relent to WAPDA.
iv) Foreign grants given by donor agencies like USAID, European Union& AFD.
v) WAPDA Sukuk, term Finance Certificates and Bonds.
vi) Loans from local commercial banks
vii) GoP grants through annual PSDP for water projects.
viii) Supplier's credit.
It is worth mentioning that WAPDA has been rated as "AAA" (Triple A) by Pakistan Credit Rating Agency (PACRA).
Challenges Being Faced by WAPDA
i. Inadequate cash flow which causes time and cost overruns.
ii. Large hydropower and multipurpose projects take long time for design and construction as for example 9 years are required for the construction of Diamer Basha Dam.
iii. Large projects are Cost intensive during construction and need high investments. (Diamer Basha Dam needs US$14 billion), however in the long run, hydropower is much cheaper.
iv. Land acquisition and resettlement issues; as the expectations of affectees are ever increasing.
v. Power evacuation and dispersal difficulties due to narrow Corridors and hazardous areas at generation sites.
vi. Power generation depends upon availability of water and hydraulic head as a result of which it fluctuates from season to season.
vii. Due to sedimentation in the reservoirs the storage capacity is gradually reduced and affects power generation.
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