April 9, 2003	Wednesday	Safar 6, 1424

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ISLAMABAD, April 8: The federal government has expressed dissatisfaction over Water and Power Authority’s (Wapda’s) failure to meet its loss reduction target for the first half of the current fiscal which stood at 24.3 per cent against targeted 22.7 per cent.

The matter came under criticism on Monday at a meeting presided over by water and power minister Aftab Ahmad Khan Sherpao to review the performance of 12 companies of Wapda.

The minister directed Wapda high officials for bringing in improvement in transmission and distribution system to reduce line losses, power ministry sources told Dawn.

He also directed Wapda to have periodical meetings with elected representatives in order to improve its public image.

The utility has told the government that it would not be able to meet targets for cash collection and debt servicing and self-financing ratio due to non-payment of dues by the public sector and high level of line losses.

Wapda Chairman Zulfiqar Ali Khan informed the meeting that Wapda has now furnace oil reserves that could meet national energy requirements for 30 days.

Three major distribution companies, at Hyderabad, Peshawar and Quetta, could not meet loss reduction target by 4.2 per cent, 8.8 per cent and 1.5 per cent, respectively. All the other five companies, at Lahore, Gujranwala, Faisalabad, Islamabad and Multan, were more or less on target to reduce losses.

Total cash collection of Rs101.021 billion, exclusive of general sales tax, was behind target mainly because of stuck-up public sector billings and decrease in revenue due to less than projected structural tariff.

CASH OUTFLOWS: Similarly, the total cash outflows remained at Rs86.336 billion, which were Rs13.083 billion less than the projections of Rs99.419 billion. This resulted into non-payment of debt service to the federal government and less than projected payments to the NWFP on account of net-hydel profit.

Wapda authorities attribute these non-payments to the circular default by public sector entities on Wapda billing which mounted up to Rs33.018 billion at the close of December 2002. They believe that unless these over Rs33 billion were recovered, the utility would not be able to clear outstanding liabilities towards federal government, the NWFP and balance towards gas companies and independent power producers (IPPs).

The Federally Administered Tribal Areas (Fata) with staggering Rs24 billion arrears is defaulter of the highest amount, followed by the Karachi Electric Supply Corporation (KESC) with Rs3.9 billion, federal government and agriculture tubewells in Balochistan with Rs1.2 billion each, AJK Rs1.123 billion and provincial governments together with Rs2.782 billion.

LINE LOSSES’ BREAK-UP: At present, the Hyderabad Electric Supply Company (Hesco) has the highest level of line losses at 34.3 per cent, followed by the Peshawar Electric Supply Company (Pesco) at 33.2 per cent, the Quetta Electric Supply Company (Qesco) at 19.2 per cent, the Multan Electric Supply Company (Mesco) at 16.9 per cent and the Lahore Electric Supply Company (Lesco) at 12.9 per cent.

The Gujranwala Electric Supply Company’s (Gesco’s) losses are currently at 10.3 per cent, Faisalabad and Islamabad electric supply companies at 8.6 per cent and 8.8 per cent, respectively.

The meeting was also briefed about National Transmission & Dispatch Company (NTDC), which is responsible for planning, construction, operation and maintenance of 500kv and 220kv transmission network.

The NTDC has constructed a total of 1,798km of transmission lines of various voltage at the cost of Rs63.49 billion in the last four years. Peak demand for the NTDC power is 10,815mw, showing a cumulative increase of 19 per cent.

The CEO of Qesco informed the meeting that Pakistan was importing electricity from Iran at the Taftan and Mashkhel border areas at Rs1.8 per unit. This year, Pakistan imported power worth Rs17.3 million. There are plans to import power for the southern areas of Balochistan that would roughly cost Rs31 million a year.

The CEO of Pesco reported that Fata arrears were touching Rs24 billion. The minister directed to install separate feeders for marble industries and for domestic consumers of Shabqadar division in order to contain line losses.