KP govt says Wapda not paying to it agreed share of NHP

Updated 23 Apr, 2022

ISLAMABAD: The Government of Khyber Pakhtunkhwa (GoKP) has accused Water and Power Development Authority (WAPDA) of not paying agreed amount of Net Hydel Profit (NHP) as per the understanding between both the federal and provincial governments, well informed sources told Business Recorder.

This issue was raised by Secretary Finance KP, Ikramullah Khan, with Secretary Power Division Syed Asif Hyder Shah.

According to Secretary Finance KP, a decision was taken in a meeting held on November 24, 2020 under the chairmanship of Federal Minister for Energy (Power Division), attended by the Secretary Power Division, wherein WAPDA agreed to transfer Rs. 3 billion per month in lieu of NHP to Government of Khyber Pakhtunkhwa.

The question of direct transfer of NHP from CPPA-G to GoKP was raised during the meeting and legal hindrances to its implementation also discussed. The meeting was informed that currently NEPRA has allowed WAPDA the NHP tariff and therefore CPPA-G has to pay the amount to WAPDA.

The provincial government maintained that as per agreed arrangement with WAPDA, the Provincial Government has projected a sum of Rs. 29.574 billion for the Financial Year 2021-22 on account of regular NHP but unfortunately the commitment made for the payment of Rs. 3 billion per month is not being complied with by WAPDA fully from January, 2022 onwards and instead WAPDA has reduced the payment to Rs. 1 billion per month unilaterally since then. The Government of Khyber Pakhtunkhwa has claimed that so far it has received a sum of Rs.9.130 billion only against the projected estimates of Rs. 29.574 billion for current financial year; thus leaving balance amount of Rs. 20.444 billion which is yet to be paid by WAPDA/ Federal Government till close of current financial year by 30 June, 2022.

Complaints against Wapda to be heard today

Secretary Finance KP has requested Secretary Power Division to intervene in the matter and issue directions to the concerned quarters in WAPDA to ensure payment in accordance with the decision by clearing of arrears of Rs. 6 billion for the months of January-March 2022 (Rs 2 billion each) and to resume payment of Rs. 3 billion per month for the remaining period of current financial year 2021-22 (i.e., April to June).

Meanwhile, Additional Secretary, Inter Provincial Coordination, KP, Khawaja Faheem Sajad has written a letter to Chief Secretary Punjab, about indexation of NHP as decided by National Electric Power Regulatory Authority (NEPRA) in the matter of WAPDA hydroelectric tariff for FY 2020-21, saying that KP government has shared a summary meant for the Council of Common Interests (CCI) with the request to furnish views/ comments on it in light of Para 4 &5 (Schedule-l), Rule 10 of the Rules of Procedure of CCI 2010; however, the requisite views/ comments have not been furnished despite five reminders sent on Jan 27,2022, Feb 09,2022, Feb 18, 02-2022, March 02,2022 and March 22, 2022.

The Government of Khyber Pakhtunkhwa has submitted 70 sets of the summary to the Secretariat of the Council of Common Interests Islamabad incorporating views of relevant stake holders except the Government of Punjab and Ministry of Energy (Power Division).

The KP government has requested both Chief Secretary Punjab and Secretary Power Division to furnish their views/ comments on the summary directly to the Secretariat of the CCI, Islamabad with a copy endorsed to IPC Department Khyber Pakhtunkhwa.

Copyright Business Recorder, 2022

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