ISLAMABAD, June 27: The federal government, Azad Jammu and Kashmir government and Wapda on Friday signed a trilateral agreement to start the project to raise the Mangla Dam’s height by 30-feet.

The project envisages a Rs24 billion compensation package for displacements and about Rs700 million annual royalty to Azad Kashmir but leaving power tariff for the AJK unsettled.

Saeedullah Jan, federal secretary water and power ministry, Shahid Rafi, chief secretary Azad Kashmir and Zulfiqar Ali Khan, chairman Wapda signed the agreement. AJK Prime Minister Sardar Sikandar Hayat Khan and water and power minister Aftab Ahmed Sherpao witnessed the signing ceremony.

A five-member committee was constituted to “firm up and submit its recommendations regarding the rate of the new electricity tariff for AJK beyond Sept 30, 2003” within the next 45 days.

When completed in 1967, Mangla reservoir had a gross capacity of 5.88 MAF, which by now has reduced to 4.68 MAF. The capacity will reduce further to 4.50 MAF by the time the dam raising is completed in 2007. Dam raising by 30 feet, annual water availability would be raised by 2.9 MAF.

The project shall bring under irrigation AJK areas of Bhimber and Mirpur as well as provide drinking water to Mirpur city. About 44,000 persons will be displaced and about 8000 families will be affected.

The project cost has been raised to Rs64 billion from Rs59 billion, previously approved by the Executive Committee of the National Executive Council in March.

Azad Kashmir will get net hydel profit/water usage charges at the rate of 15 paisa per unit (KwH) from Mangla dam from June 27, 2003. Fishing rights over the dam have also been given to the AJK government.

Presently, a fixed rate of Rs4.2 per unit is being charged from AJK. Till Sept 30 this year, Wapda would bear 71 paisa per unit on the basis of 17 per cent losses, AJK will pay Rs2.44 per unit and federal government would pay Rs1.05 per unit as subsidy. After that, a new tariff would be fixed on the recommendations of the five member committee.

Under the agreement, people previously displaced by construction of Mangla Dam — comprising 7,707 families, having land holding of half and acre or more — shall be compensated at the rate of Rs200,000 per family.

Wapda’s claim that 4,481 families had given an undertaking that they did not require land would be verified by a joint committee. The 6,126 families, who owned less than half an acre land, shall not be compensated any more.

The federal government has ensured that governments of the Punjab and Sindh would grant proprietary rights to 562 families who have not yet been given such rights to land besides allotting residential plots to 2,700 families.

The Wapda shall pay land compensation to the new affected persons at the market rate plus 15 per cent compulsory acquisition charges. The Wapda shall also pay market price to the owners of the houses and an additional 10 per cent shall be given above the price. They would also be allowed to carry the debris of their houses. They shall also be paid a minimum compensation for a house at the rate of Rs300,000 and shall be entitled to plot of five marlas to one kanal on payment of cost of land.

Refugees from the Indian Occupied Kashmir settled on the AJK and Wapda lands shall be paid minimum Rs300,000 per family plus five marla plot free of cost.

To accommodate the affected persons, the Wapda shall build a city near Mirpur and four towns as close as possible to the affected area. The Wapda shall provide required infrastructure facilities while AJK government would make state available on payment at site-II for new city.

The Wapda dropped its claim of outstanding arrears of Rs900 million against Azad Kashmir while AJK government dropped its claims for reimbursement of overpayments to Wapda. Similarly, AJK Council shall drop its claim of Rs1.4 billion paid to Wapda on behalf of AJK government.