NWFP-Wapda dispute resolved: PM to hand over cheque of Rs 10 billion today

[Naveed Yaseen]

ABDUL QADOOS
PESHAWAR (October 31 2009): The long-standing dispute between the NWFP government and Water and Power Development Authority (Wapda) as the Federal government has agreed to pay Rs 110 billion to the provincial government in the head of net-profit on hydropower generation. The NWFP government has an outstanding amount of Rs 110 billion to Wapda, while the Federal government was guarantor.

Prime Minister Yousuf Raza Gilani is visiting the provincial capital to announce the schedule for the payment of the outstanding amount to the province on Saturday. NWFP Finance Minister Mohammad Hamayun Khan, while talking to Business Recorder here on Friday announced this. During the one-day visit, the Prime Minister would hand over a cheque for Rs 10 billion as first instalment to the province.

The remaining Rs 100 billion would be paid through annual instalments Rs 30 billion. The agreed amount would be paid on June 30 of each financial year, he said. It may be recalled that the NWFP government had referred the case of recovery of Rs 110 billion to the arbitration tribunal, which announced the decision in October, 2006.

The former provincial government and Wapda had made a commitment that the decision of the tribunal would be acceptable to both the parties, but Wapda failed to honour the commitment and challenged the verdict in a civil court of Islamabad. However, the NWFP government took the case to the apex court.

Since the formulation of the present set-ups at both Federal and provincial levels, the provincial government was vigorously pursuing the case of the province. The provincial government also moved the National Finance Commission (NFC) announced in 1991, and Wapda had agreed to pay rupees six billion each year in the head of net-profit on electricity. The NWFP team, headed by Provincial Finance Minister Mohammad Hamayun Khan, since the very beginning of the activities of the NFC, pursued the case for the resolution of the long-standing disputes with Wapda.

The officials of the provincial government have for the first time acknowledged the co-operation of the Federal government in resolution of the decades-old disputes. They said the Federal government had accommodated the proposals and demands of the province. After the amount paid to NWFP, the province is likely to get Rs 24 billion annually in head of net-profit and another amount of Rs 30 billion as instalment of the outstanding amount.

At the NFC meeting, the NWFP team, headed by Finance Minister Mohammad Hamayun Khan, was pursuing the case since the very beginning of the activities of the NFC and demanding resolution of the long-standing disputes with Wapda and other federating units.

The provincial government officials, for the first time, acknowledged the co-operation of the Federal government in resolution of the decades-old disputes. "The Federal government is accommodating the proposals and demands of the province," the Finance Minister said. He expressed the hope that the Federal government would also uncap payment in the head of hydropower generation.

The Finance Minister said that other proposals like applying multi-factor criteria for the distribution of national resources, besides inclusion of poverty, backwardness and war on terror, in the award. He said the of Punjab was also exhibiting flexibility in its stand on the distribution of resources, while the NWFP's demand for payment of compensation for battling terrorism was not getting required favour from other members of the commission.

http://www.brecorder.com/index.php?id=98...=&supDate=