ISLAMABAD, July 7: International lenders have sought revised agreements and guarantees of the federal government for transfer of loan liabilities and assets of Wapda to its corporate companies in order to complete corporatization process of the power sector.

Sources said local representatives of the lender agencies have also informed the government that the revised agreements would have to be approved by their board of directors because they wanted sovereign guarantees of the federal government for the repayment of over Rs100 billion loans payable by Wapda.

The second most important condition of the corporatization process of Wapda will be the notification of separate tariffs for all the distribution companies, for which the National Electric Power Regulatory Authority is currently holding public hearings.

These issues were discussed here on Thursday in a meeting presided over by Water and Power Minister Liaquat Ali Jatoi and attended by Wapda top brass and officials of finance and economic affairs divisions.

The meeting was informed that the process of restructuring of Wapda and devolution of powers had almost been completed in order to provide total financial and administrative independence to the power distribution companies (Discos) and better facilities to the consumers.

Wapda Chairman Tariq Hameed told the meeting that the process of restructuring was being done on fast track basis and the companies would work independently after the notification of new power tariff.

The control of grid system operation has been handed over to the companies, which will be responsible for smooth power supply to the people. All the development works like construction of grid stations, instalments of transformers and power transmission lines, which were earlier being done by Wapda, have now been transferred to the companies in order to make their plans and complete within their own resources according to the regional requirements. The transfer of manpower to the companies had been completed, Mr Hameed added.

The meeting noted that the boards of directors had been fully empowered; all financial powers and purchasing responsibility had been devolved. It was further informed that the remaining matters like transfer of loan liabilities to the corporate entities and some other issues related to EAD and finance division were under finalization. Only water wing and dams will remain under the control of Wapda in the new restructuring set-up.

The water and power minister told the meeting that the transfer of all responsibilities to the power companies would make them more efficient. “All the companies will now be accountable on all matters regarding their performance, operation and customers services.”

The companies will able to make their plans of customer services, modern methods of billing and their payments, minimum tariff according to their revenue, new connections and tariff policy for industrial, commercial, agricultural and domestic consumers of their areas.

The meeting asked the economic affairs division and finance to submit a detailed report on transfer of loan liabilities with the consensus of the law division and the Privatization Commission for approval.