ISLAMABAD: Federal Minister for Power Sardar Awais Ahmad Khan Leghari has directed National Transmission and Despatch Company (NTDC) to expedite work on power evacuation projects to transmit cheap electricity to consumers.
He issued these directions at a meeting with Chairman Water and Power Development Authority (Wapda) Lt Gen Sajjad Ghani (retd) here on Tuesday.
During the meeting, there was a detailed discussion on the issues of early completion of under construction hydroelectric projects of Wapda.
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The Minister issued clear instructions to NTDC that no delay in any project will be tolerated and strict action will be taken against officials causing delay.
In the meeting, Chairman Wapda offered to provide technical assistance to NTDC.
Meanwhile, Wapda, in a letter to Power Division, stated that despite repeated requests, CPPA-G after October, 2020 is not releasing any amount on account of longstanding duly reconciled and agreed arrears comprising non-escalable component of Rs. 81.272 billion.
Further, the overdue hydroelectric receivables have altogether contributed to the creation of huge receivables delta of Rs.264.575 billion which is severely effecting Wapda liquidity position.
According to Wapda it is developing mega projects of strategic national importance including Dasu, Mohmand, Diamer Bhasha, Tarbela 5th Ext and Karachi Water Supply Scheme K-IV, which underscore the need to receive releases from CPPA-G against pending claims on a timely basis which is quintessential to meeting equity injection, O&M, pension and debt servicing requirements. Further, provinces also agitate for clearing their payables which is dependent on timely releases by CPPA-G.
Wapda has requested Secretary Power Division and Chief Executive Officer (CPPA-G) to immediately clear Wapda hydroelectric receivables of Rs 264.575 billion including the arrears on account of non-escalable component so that the entity is able to meet its operational and development needs.
On December 14, 2023, Wapda had written a letter to Power Division but no action has been taken. Now as of February 29, 2024, Wada’s hydroelectric receivables reached Rs 264.757 billion of which Rs 183.272 billion are due on account of hydroelectric invoices including Net Hydel Profit (GoKPK Rs 32.339 billion and GoPb Rs 70.211 billion) and Rs 81.272 billion on as hydroelectric arrears (non-escalable component).
Copyright Business Recorder, 2024