October 14, 2006	Saturday	Ramazan 20, 1427

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ISLAMABAD, Oct 13: The MMA-led NWFP government is upbeat about the Arbitration Tribunal award of Rs110 billion arrears of its hydro-power net profits accounts and is not interested in raising, at least for the time being, the issue of the federal government’s constitutional obligation to pay the dues with effect from 1973.

The province has received Rs85 billion out of the total Rs193 billion accumulated against Wapda from 1991 to 2006. Under the A. G. N. Kazi formula of payment of net profits, Wapda had capped the amount at Rs6 billion since 1992 which now stands at Rs24 billion per annum with 10 percent annual increase since then. This was stated by NWFP Senior Minister Sirajul Haq while speaking at a news conference here on Friday. Mr Haq also holds the portfolio of provincial finance minister.

Under article 161(2) of the 1973 Constitution, Wapda was supposed to pay the NWFP a share of net profit of hydro power generation. The matter, however, remained unresolved till 1991 when the Nawaz Sharif government accepted the demand of the NWFP government for payment of its share. The two governments had agreed to accept the A. G. N. Kazi formula as basis of payment from net the profits starting from 1991.

The minister said both the federal and provincial governments were bound by an agreement to accept and abide by whatever award was announced by the Arbitration Tribunal, set up a year ago under the same agreement.

He said the provincial government would first repay its debts as soon as arrears amount was received and then provide relief to the people affected by construction of the Tarbela Dam. He said the government would transfer benefits of the award to poor sections of the society.

When asked if the federal government and Wapda would honour the agreement and pay Rs22 billion first instalment in next three months, the minister replied in optimistic tone saying both Salim Saifullah and Amir Muqam, both representing the NWFP in the federal cabinet, had welcomed the award.

He said the provincial government was not eager to claim credit of resolving such a complex issue.