ISLAMABAD, Oct 31: The centre, NWFP government and Wapda on Monday set up through an agreement an arbitration tribunal to decide a longstanding dispute between the provincial government and the power utility over the computation of net hydel profit.
The five-member tribunal is led by former Chief Justice of Pakistan Ajmal Mian. The NWFP is represented by Senator Professor Khurshid Ahmed and Mr Abdullah, chairman of NWFP Public Service Commission. Former Wapda members for power and finance Javaid Akhtar and Manzoor A. Sheikh will represent Wapda in the tribunal.
The agreement to this effect was signed by the respective parties in the presence of Prime Minister Shaukat Aziz. Wapda chairman Tariq Hameed, NWFP secretary finance Zia-ul-Rehman and federal secretary Water and Power Ishfaq Mahmood signed the agreement.
The Muttahida Majlis-i-Amal (MMA) government has a claim of about Rs350 billion in arrears against Wapda on account of net hydel profit since 1991-92. Wapda, on the other hand, has been saying that it had made full payments to the NWFP at an average Rs6 billion per annum under the AGN Kazi formula. Both the parties have difference of opinion over the interpretation of the Kazi formula in terms of computation of net hydel profit.
According to the terms of reference, the tribunal shall decide the dispute arising from the claim of the NWFP government against Wapda for computation of net hydel profits in accordance with the decisions of the Council of Common Interests of January 12, 1991; September 12, 1993; May 29, 1997 and December 22, 1998.
It will also determine the amounts due and payable to the government of NWFP from fiscal year 1991-92 to 2004-05. In case of any payments made by Wapda including amounts, by whatever means, provided by the federal government on behalf of Wapda to the NWFP on account of net hydel profits, over and above the amounts so determined by the tribunal, the overpayment shall be refundable by the NWFP to Wapda or the federal government, as the case may be.
The tribunal’s award made in accordance with the above-mentioned CCI decisions shall be final and binding on the parties. The tribunal shall not go beyond the TOR while making the award but it will decide the dispute in accordance with the rights of the parties under the law.
The tribunal shall also lay down a schedule of payment of the amounts. Without prejudice to the right of the NWFP government to take up its claims on computation of net hydel profits for the period from fiscal year 1973-94 to fiscal year 1999-91 separately with the federal government as to the NWFP’s claim on entitlement in the light of the CCI decisions of January 12, 1991, the tribunal shall determine the payments or overpayments due from the parties, as the case may be, of net hydel profit from financial years 1991-92 to 2004-05.
Prime Minister Shaukat Aziz appreciated the NWFP government, Wapda and the ministry of water and power for agreeing to the setting up of the tribunal to solve the longstanding issue. He said the central government believed in coordination and harmony with the provinces.
