PESHAWAR, Nov 1: The NWFP government is in disagreement with the federal government over its decision to appoint chief arbitrator for the up-coming arbitration between the province and the Water and Power Development Authority (Wapda), according to official sources.

The Federal government, said the sources, had indicated to the two sides that it would appoint the chief arbitrator to resolve a dispute between them over the payment of net hydel profit. The issue has had hampered their working relationship for well over 20 years.

The province and Wapda had been asked to recommend names of two men each for the purpose of appointing the chief arbitrator.

The two sides had already nominated two representatives each for the five member arbitration panel, which would also include a chief arbitrator.

Currently the NWFP government and Centre are locked in a row over the question of the appointment of the chief arbitrator.

As per federal government's decision, the selection of the chief arbitrator would be made by it out of four names put forth jointly by the two sides.

However, several months have passed since the two sides were asked to recommend names of their representatives but the provincial government has not pursued the matter because it disagrees with the Centre's authority to appoint the head of the arbitration panel through this arrangement.

The province, according to sources, is of the view that the selection of the chief arbitrator is a matter which should be decided by the two parties going for arbitration.

"As per universally accepted principles of arbitration, the chief arbitrator has to be selected through mutual consent by the parties opting for arbitration," said an official.

The province has not responded also to Prime Minister Shaukat Aziz's call for recommending the names.

In his maiden visit to the provincial capital after assuming the office of prime minister, Mr Aziz, in his meeting with the provincial government's high-ups, had asked them to put forward two names so that the process of arbitration could be initiated.