ISLAMABAD: The Centre and Khyber Pakhtunkhwa government have resolved an old issue of hydel profit arrears.
Federal Water and Power Minister Khawaja Asif and KP Chief Minister Pervez Khattak signed the MoU, while Finance Minister Ishaq Dar was also present there. Chief Minister Pervez Khattak along with his cabinet and senior officials represented KP in the high-level meeting.
As per the agreement, the net hydel profit for KP has been uncapped and the province would receive arrears worth Rs 70 billion in four years. The meeting decided that uncapped NHP, as determined by Nepra, would be notified immediately by the Ministry of Water & Power.
The meeting also decided that Wapda, after seeking concurrence of Council of Common Interests (CCI) through Ministry of Water and Power, would file a tariff petition for recovery of arrears in four instalments – first instalment of Rs 25 billion in current financial year and Rs 15 billion each in the next three financial years.
The meeting also discussed matters regarding Pehur Hydro Power Project owned by the KP government. It was agreed that a power purchase agreement (PPA) would be signed by CPPA-G latest by 31st March this year that would incorporate a mechanism for the recovery of outstanding amounts.
Considering the matter regarding allocation of gas for power generation, it was decided that the federal government would allocate 100MMCFD gas to the KP government to use it in power generation either on its own or through partnership with the private sector.
It was also agreed that the feasibility of Chashma Right Bank Uplift Canal project in KP would be carried out afresh by the Ministry of Water and Power and the KP government in coordination with the Planning and Development Division. Upon approval, the project would be co-financed by the federal and KP governments with a 65-35 ratio. The KP government would also bear the operation, management and recurring costs of the project.
It was also decided in the meeting that the issues of Workers Welfare Fund (WWF) relating to KP would be duly addressed by federal secretary, HRD (Human Resource Development), on priority.
Later, Finance Minister Ishaq Dar, giving details to the media about the agreement, said the successful talks were truly reflective of the policy of reconciliation being followed by the government led-by Prime Minister Muhammad Nawaz Sharif.
