ISLAMABAD, Jan 9: The Frontier government on Tuesday moved the Supreme Court for the recovery of Rs110 billion in hydel profits from the Water and Power Development Authority (Wapda) and the federal government, as determined by an arbitration tribunal.

Senior Advocate Abdul Hafeez Pirzada and Barrister Gul Hassan submitted the suit on behalf of the NWFP government for the recovery of net hydel profits (NHP) on bulk electricity generation at hydro-electric stations in the province.

They pleaded that under Article 184(1) of the Constitution, only the Supreme Court has exclusive jurisdiction to adjudicate instant dispute between the federal government, Wapda and the provincial government.

Six hydro-electric stations in the province, namely Tarbella, Warsak, Dargai, Malakand, Bannu and Chitral, are producing about 4,000MW of electricity.

In what appears to be a tit-for-tat court battle, the petition comes three weeks after the federal government secured a stay by challenging the frontier government’s Hasba Bill passed by the provincial assembly to monitor religious practices in the province.

The Frontier government on Tuesday moved the Supreme Court with a suit against the

federal government and

Wapda for non-payment of Rs110 billion NHP.

In the suit, the Supreme Court has been requested to decide in favour of provincial government by declaring that it was entitled to jointly receive from the federal government and Wapda Rs110 billion NHP from 1991 to 2005.

A request has also been made before the apex court to declare that the federal government was the principal debtor and liable to pay the NHP under the obligation imposed on it under Article 161(2) of the Constitution and also by virtue of sovereign guarantee provided by the President’s Order No3 of 1991 obligating the federal government to ensure that Wapda should regularly pay net hydel profits to the provincial government.

The Supreme Court is also required to interpret that award announced by an Arbitral Tribunal on October 9, 2006 was final and binding on the federal government, Wapda and the NWFP government.

Led by former Chief Justice Ajmal Mian as chairman, the five-member arbitral tribunal had held that Wapda would pay Rs110 billion NHP in five annual instalments. The first instalment of Rs22 billion was due on January 9, 2007.

Instead of paying the money, Hafeez Pirzada told reporters at the Supreme Court, Wapda preferred a civil suit against the tribunal's award before the Court of Civil Judge Islamabad under Section 14 of the Arbitration Act. The civil court has summoned the provincial government on Wednesday.

In the petition before the apex court, the petitioner has also asked to declare that the court of civil judge Islamabad has wrongfully assumed jurisdiction. The constitutional right and entitlement of the NWFP government could not be impeded or defeated by resorting to proceedings before the civil judge, the petition stated.

The NWFP Chief Minister Akram Durrani has personally discussed the matter for early settlement of arrears with President Pervez Musharraf twice and Prime Minister Shaukat Aziz, besides writing letters to both functionaries.

Instead of honouring the award, Wapda filed the suit before the Islamabad civil judge, Pirzada deplored.

Lack of timely payment of the NHP to the NWFP is adversely affecting development work in the province, the petition contended.

Had the province received its due profits in accordance with the A.G.N. Kazi formula which was also adopted by the Council of Common Interest CCI), it would have created adequate economic activity, generated employment and resources in the province, thus improving overall condition of its population.

Being the third largest province, poverty is pervasive and deep in the NWFP, besides the presence of Afghan refugees on its territory, and the internally displaced persons of October 8, 2005 earthquake. All this has also put extra burden on its financial viability.

It said the NWFP has a week resource base as compared to other provinces and even for its food requirements it depends on food grain from other provinces or imports it from abroad.

The province is severely handicapped in agricultural land and a significant industry. Due to its weak resource base, most of the mineral wealth and tourism potential remain unexploited.