The federal government on Wednesday proposed to the NWFP government to resolve its net hydel profit issue with Water and Power Development Authority (Wapda) through arbitration and should nominate an arbitrator in consultation with the power authority for its amicable resolution.
The government has also decided to establish another transit route to Afghanistan from Shahi bin Shahi near Dir from NWFP.
These issues were discussed during a meeting of Chief Minister of NWFP Muhammad Akram Khan Durrani with Finance Minister, Shaukat Aziz here.
Official sources told Business Recorder that NWFP chief minister asked Shaukat Aziz that the Federal government should play its role to resolve the net hydel profit issue with Wapda.
NWFP government is demanding of Wapda to uncap its royalty from Tarbela dam which is fixed at Rs 6 billion per annum.
Moreover, the province has also the arrears issue with Wapda and according to the claim of the provincial government it has Rs 345 billion arrears against Wapda, a claim rejected by the Authority and claimed overpayment to the province under the net hydel profit head.
NWFP is demanding calculation of net hydel profit share on the basis of AGN Kazi formula put forth by a special committee back in late 1980s.
The Finance Minister said this should be settled through deliberation between the two parties in an amicable manner.
The Finance Minister further proposed that NWFP should nominate an arbitrator jointly with Wapda to evolve solution for the issue acceptable to both parties.
Shaukat said that they would accept the decision of the arbitrator.
Meanwhile a press statement issued here said that the two sides expressed satisfaction over the progress made on opening of transit route to Afghanistan from, Ghulam Khan and hoped that it would become functional shortly.
Chief Minister NWFP assured full logistic and administrative support to put in place the custom and other formalities for the post to be functional.
Finance Minister and Chief Minister NWFP expressed satisfaction over political settlement on the constitutional matters and hoped that it would encourage investors and international donors to participate in the economic development of the country.
The Finance Minister said that the government would soon finalise proposal for starting feasibility study of Lowari Tunnel for providing an all weather communication link between Chitral and NWFP.
The two sides also touched base on NFC and hoped that through consensus the next NFC Award would cater for development needs of the provinces as well as the federation.