Water and Power Development Authority (Wapda) has earned Rs 60 billion during the first quarter of the current fiscal, which is above the target. Wapda Chairman Tariq Hamid told newsmen at an Iftar reception here on Thursday that Wapda is confident to achieve target of Rs 236 billion set for the fiscal year 2004-05.
During the first quarter of the current fiscal, around 1,800 villages have been electrified while 3,400 agricultural tube-well connections have been issued, he added. He said that Wapda has decided to spend Rs 14 billion during this year for improving its transmission and distribution system.
To a question he said that there would be no impact of price increase on power consumers in any way.
As a matter of fact, Nepra after listening to the point of view of DISCOs is likely to withdraw its decision regarding power reduction announced a few months ago. He ruled out any possibility of tariff increase, as there will be minor adjustments, which will not leave any impact on consumers.
Tariq said: "Wapda is facing a huge additional financial burden due to significant increase in furnace oil prices. On one side, Wapda is forced to use its full potential of thermal power generation due to water shortage, while on the other hand, the government is not in a position to provide gas to Wapda, according to its requirements."
"Wapda is estimating that this year the cost of power generation will reach Rs 20 billion," he said, adding, "corporisation of Wapda is in progress and the office of Pakistan Electric Power Company (Pepco) is being shifted to Islamabad before January 1, 2005." He added that Wapda is using full capacity of IPPs (6000 mw) this year.
In 2006, 10 years of major IPPs will be completed and afterward there will be cut in payments to IPPs. However, if furnace oil prices continue to increase, Wapda will have to pay more to IPPs.
SECURITY PLAN: Responding to a question he said that a comprehensive security plan has been devised for the security of Chinese workers working on power project. According to new plan around 300 personnel of the Frontier Constabulary have been deputed at Gomal Zam Dam. He said that the present progress rate of Gomal Zam Dam is only 12 percent as against target of 25 percent.
To another question he said that recovery of Wapda receivables is quite satisfactory except Fata.
He said: "Designs of Kalabagh and Bhasha dams are ready and construction work can be started as and when the government gives go ahead signal to Wapda."
He said: "Efforts are under way to improve customer services, strengthen transmission lines and improve human resource in the organisation."
To another question he said that Wapda would not give any bonus to its employees on Eid.