Government urged to resolve NWFP-Wapda row over NHP

14 May, 2008

The government has been urged to help resolve the longstanding dispute of net hydel profit between the NWFP government and Water and Power Development Authority (Wapda) with the former claiming arrears of Rs 110 billion.
"I request the Minister for Water and Power, through this forum, to withdraw the case from the Supreme Court and make Rs 110 billion arrears, agreed by both parties in the arbitration council," Ilyas Bilour said on a calling attention notice he had moved to raise the issue in the Senate.
"The arrears could paid in instalments," he said, but added that Rs 22 billion must be paid on priority basis to make the province feel easy on financial side." He alleged that the issue was made sub judice deliberately.
"As there is government of our coalition allies in the Centre," he said, "NWFP people anticipate it to resolve the issue so that net hydel profit payments are made."
The dispute of Rs 348 billion between NWFP government and Wapda, he said, was contested by both parties in arbitration council and it was agreed that Wapda would pay Rs 110 billion arrears and Rs 22 billion annual profit to the provincial government, which was not honoured by Wapda.
Abdul Rahim Mandhokhel said the province is in pathetic condition and should be financially helped by providing arrears so as social welfare programs for the masses welfare may be undertaken. Minister for Water and Power Pervaiz Ashraf said that there was dispute between NWFP and Wapda over calculation of net hydel profit, with both parties moving the courts.
"Wapda had moved a sessions court, while NWFP government had moved the Supreme Court, and the government was unable to do anything about calculation since the issue is sub judice". The minister said the government wants to resolve the issue on the basis of reality.
As the calculation of hydel profit was tedious, he said, it was decided that NWFP government should be paid Rs 110 billion as previous dues and Rs 22 billion annually with 10 percent increase every year.
The minister said he hoped that the issue would be resolved amicably, with leader of the House assuring the protesting NWFP senators on not letting them speak after the statement by the minister that the government would take up the issue in the next session through an adjournment motion.
The NWFP government claims about Rs 348 billion arrears against the Wapda on account of net hydel profit since 1991-92 whereas Wapda says it had made full payments to the NWFP at an average of Rs six billion per annum under the AGN Kazi formula.

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