ISLAMABAD, April 21: The arbitral tribunal on Wapda-NWFP dispute over hydel profit has sought six months extension until October 31 to give a final award, it is learnt. The five-member tribunal led by former Chief Justice Ajmal Mian appointed on Oct 31, 2005, was originally required to adjudicate the dispute in six months, i.e. by April 30, 2006.
Informed sources told Dawn on Thursday that both the parties to the dispute — Wapda and the NWFP government — had asked the tribunal for extension in the deadline and the tribunal chairman agreed to the proposal because a lot of work was required to be done to reach a final decision.
These sources said the matter has been taken up with the prime minister and ministries of law and justice and water and power so as to issue a fresh notification for another six months before the expiry of original deadline.
Earlier, the tribunal had asked the NWFP government and Wapda to submit their detailed position papers on their respective interpretation of AGN Kazi formula to determine true calculation of provincial net hydel profit.
Both sides had submitted their detailed position papers. The tribunal was still in the process of understanding the issue based on arguments of both sides owing to the complexity of the issue and examination of huge record that has piled up since 1991 water accord.
The five-member arbitral tribunal formally started its proceedings on Nov 9, 2005 to resolve a longstanding dispute between the NWFP and Wapda over computation of net hydel profit. The arbitration award of the tribunal will be binding.
The tribunal was appointed by the federal government through a trilateral agreement signed by the NWFP, Wapda and federal ministry of Water and Power to decide the dispute within a period of six months, extendable through mutual consent of the parties.
The NWFP is represented in the tribunal by Senator Prof Khurshid Ahmed and Mr Abdullah, chairman NWFP public service commission. Former Wapda members for power and finance Javaid Akhtar and Manzoor A. Sheikh respectively are representing Wapda in the tribunal.
The NWFP 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 a counter claim 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 Kazi formula in terms of computation of net hydel profit. The tribunal has to examine the AGN Kazi formula in the light of arguments of both parties, original wordings of the AGN Kazi formula and decisions of the council of common interest (CCI) and would be treated as final interpretation.
According to terms of reference, the arbitral 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 what ever 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.
