Pakistan’s agricultural, industrial and eventually economic growths rely upon the development in water and power sectors. Unfortunately, Wapda’s performance, particularly in the power sector was deteriorating due to political interference and corruption. Army assistance was sought by the civilian government to rescue the sinking Wapda ship in November 1998.
The new administration inherited bulk of problems including a deficit of Rs53 billion along with a volume of technical losses to the tune of 42 per cent of the total power production.
In spite of that short and frightening situation, the new managements tried its best to reconstruct if and bring it out of annoying waters. To achieve the target, the new management devised and adopted some efficacious policies evincing successful results in all the departments of the organization.
The progressive shift of Wapda’s power wing into twelve corporate companies is among the important achievements of the present management. Now Wapda’s power wing consist of three generation companies (GENCOs), one National Transmission and Dispatch Company (NTDC) and eight distribution companies (DISCOs) viable independently.
The completion of 183 MW Chashma Hydel power project is an alluring example to elaborate the major achievements made under the present management Construction of the first hydel power project after Tarbela power station project had been stuck up due to financial constraints. The project was reactivated and got completed within revised schedule. The operation raised the hydel potential on Wapda power generation system to 5,009 MW.
The increasing power generation trend is another index good enough to gauge performance of the present management. The power generation capacity marked an increase of 14 per cent as compared to 53.3 billion units of electrical energy generated during the fiscal year 1997-98. The bulk of power units generated during fiscal year 2001-02 stood at 60.8 billion.
Increased revenue realization is another striking indicator to assess the achievements of the present management. The revenue collected during the fiscal year 2001-02 also marked an increase of 100 per cent as compared to the collection of Rs93.3 billion during the fiscal year 1997-98. The bulk of revenue stood at Rs186.3 billion at the end of the recent financial year. The present management took over Wapda at a perpetual loss of 42 per cent of total electrical energy generation in its system. These technical losses have been reduced to 25 per cent during the fiscal year 2001-02, thus marking a total reduction of 41 per cent as compared to the line losses percentage assessed in the fiscal year 1997-98.
Reinforcing the material purchases and overcoming the material shortages, the present management successfully provided 20,43,215 new connections to the domestic commercial, industrial and agriculture consumers. The number of consumers on Wapda system has risen to 12.7 million at the end of fiscal year 2001-02, marking an increase of 24 per cent as compared to the figure of 10.2 million at the time when present management took over.
In the period under review, as many as 205 grid stations were developed including new ones and extension / augmentation of the existing ones to adequately cope with the increased load to ensure stable power supply to the consumers. Besides these grid stations another 9,996 km of high tension and 8,744 km of low tension transmission and distribution lines were added to stablize the Wapda power transmission and distribution system all over the country.
The present management also deserves the credit for supply of power to Panjgoor and Tabina Plateau in Balochistan and Kalam, Kaghan and Naran in the NWFP, thus bringing these remote areas in the mainstream of socio-economic development of the country.
The management embraced 6,979 new villages to its power distribution system. The number of villages electrified up to the end of 2001-02 stood at 71,567 thus marking an increase of 11 per cent as compared to the pre-present management number of 64,568 villages.
Wapda’s transformer reclamation workshops rehabilitated 13,497 damaged transformers of various capacities and thus saved a considerable chunk of funds, which otherwise would have gone to purchase of new transformers for installation in the system.
Prompt and quick redressal of consumers’ complaints is the top priority area of the present management. The improvements made in this area of customer services have resulted in quick action and unprecedented redressal of 29,70,813 complaints during the period under review.
A system of accountability has been introduced in Wapda on a strong and transparent basis. The crux of the system is punishment for the corrupt, wrong doers, shirkers and discipline spoilers. During this process 35,295 disciplinary cases have been decided, including the backlog. Due penalties have been imposed on 25,040 personnel including 3,125 officers of all ranks even the general managers which included even removal from service to the officers and officials found indulged in high scale of evil doing. In order to bring about improvement in technical expertise and help provide better service to customers, recruitment of technical personnel have been made through a transparent merit system - i.e. announcement of vacancies in the newspapers, written test and job for those who qualified in the rest. The personnel so recruited included 250 junior engineers, 450 line superintendents, 750 linemen, 500 commercial assistants and 10,000 meter readers and bill distributors on contract basis in the DISCOs.
Safety at work is on top. A standard operating procedure has been introduced for the line crews. Safety directorates have been activated and safety coordinators have sufficient quantity. Training has been imparted. Under the code, linemen have been allowed to refuse to work on line if they are not provided the paper T&P. The accidents while at work have reduced and such an occurrence taking place is mainly due to over confidence and just for money. Efforts are underway to overcome this tendency too. Employment to children of deceased employees is being guaranteed. Safety Awards to best sub division in each DISCO on biannual basis has also been introduced to reduce fatal accidents and increase awareness.
Another area of spectacular attainment, which has been activated, is “performance-based promotion”. The criteria have been introduced under a transparent system instead of pre-existing principle of seniority. Examination for promotion has been made mandatory and a meaningful training system has been developed. Performance based Merit Certificates are awarded to outstanding employees (officers and workers) on quarterly basis. Over 1.5 million rupees have already been distributed among 229 officers and 251 workers under this scheme as an incentive in recognition of their profound services rendered to the department in enhancing its efficiency.
The new management successfully renegotiated electricity tariffs with 15 independent power procedures including Kot Addu Power Company (KAPCO) and Hub Power Company (Hubco). Other thirteen IPPs are Southern Electric Power, Habibullah Coastal, Saba Power, Japan Power. Power Generation, Altern Energy Liberty Power, Davis Energy, Northern Electric, Rousch (Pakistan) Power Ltd, Fauji Kabirwala, Uch Power Ltd and Eashatech. The Eashatech rolled back with mutual consent. Their voluntary decrease in levelized tariff has resulted in a saving of US $ 6,038 billion, or aggregate, over their life span of thirty years. Here, the people raise a question that why the electricity sale price does not come down due to this decrease in tariff and the resultant saving.
The answer is that the IPPs have front-end loading. Wapda even today is making heavy payments to them and bearing a deficit of around one rupee per unit as compared with its per unit sale of price in case of Hubco despite the fact that Hubco has amicably reduced its tariff by one cent per unit. The benefit of real saving will be passed on to the consumers in future when IPPs’ tariff will come down to US cents 5.5 per unit. The major factor due to which electricity rates can not be cut down is, rapid increase in the prices of oil and gas fuel used to generate thermal power, which is 70 per cent of the production as at present due to consecutive three drought years in the current eleven year cycle. This resulted in more dependence on thermal power generation from Wapda’s own units and IPPs.
Wapda, of course, suggested the government to bring down the tariff to increase gas supplies to thermal power stations so as to economize in power generation cost and provide gas at the rate allowed to fertilizer industry, provide raw furnace oil (RFO) for the purpose on the lower rates giving exemption of taxes and duties, to provide oil import facilities to it at the port and clearance of public sector consumers payments due to Wapda.
Wapda tariff is, in fact based on Rs5,500 per metric ton raw furnace oil price of May 1999 and gas price of Rs.89 per MCFT. With all the price hike and price slash of the fuel under time to time revision mechanism, even today in August 2002 the RFO price is 141 percent and gas price 104.5 per cent higher than the basis of its tariff. As such solution of the decrease in electricity prices lies only in somehow reduction in the fuel prices before the low-cost hydro-electric power is developed at large scale as proposed and planned in “Vision - 2025” programme by Wapda. This programme has been appreciated and approved by the Chief Executive of Pakistan on presenting to him last year. This includes construction of new dams and new water reservoirs to overcome water shortage and produce low cost hydroelectric power harnessing the available potential in the country.
Chashma Hydro-Power Project (184 MW) which started pooling its production from all the 8 units to the national gird during the year 2001 was formally inaugurated by the President of Pakistan on February 27, 2001. Ghazi Barotha Hydro-Power Project (1450 MW), downstream Tarbela Dam, again on Indus river, is another important national project for providing cheap source of electricity to the economy sectors. Over 86 per cent civil work of the project stood completed by June 2002.
The President of Pakistan performed the ground-breaking ceremony of the Fast Track Gomal Zam Darr, Mirani Dam and Thal Flood Water Canal projects during the months of August, 2001. Work at site is in progress to achieve early completion of these projects as scheduled. The engineering, procurement and construction contracts for both the dams were awarded in June to mobilize and start the work from July 1, 2002. It is for the first time in the history of Pakistan that EPC contracts have been awarded. Fast track Satpara Dam multipurpose project for water storage and hydro electric power production has been undertaken. Feasibility study has been completed and revised PC-I submitted to government of Pakistan. Departmental work at site is in progress.
Fainee Flooe Water Canal Projects pre-feasibility study has been completed. Further work is in progress. Ground breaking ceremony of this project is expected in the second week of August. Kachhi Canal Project’s feasibility study is being carried out. Its ground breaking ceremony is also expected soon.
For Pakistan, the cornerstone of self-reliance in power sector and rational electricity tariffs is optimal utilization of hydel resources and development of non-polluting renewable source of hydroelectric power energy. Pakistan is fortunate to be enclosed with economically exploitable 40,000 MW hydropower potential. WAPDA has therefore prioritized the projects under Vision 2025, which can be developed within a reasonable period of 25 years.
Working in this direction, feasibility study of Jinnah-Malakand III, Allal Khwar Khan Khwar, Duber Khwar Golen Gol, Matiltan, Upper Jhelum Canal hydropower projects have been completed. Engineering Design and preparation of tender documents of Allai Khwar Khan Khawar, Duber Khwar projects, is in progress. Abu Dhabi Development Fund has provided US $ 60 million, 40 million and 55 million respectively for construction of these projects. MOU for the funding was signed in December, 2001 at Islamabad between the governments of two friendly countries i.e. Pakistan and United Arab Emirates.
Feasibility study and engineering design of Neelum Jhelum Hydro-Power Project has also been completed and its PC-I was submitted to the government of Pakistan in May, 2001 while pre-feasibility study of Kohala Hydro-power Project has been completed as well.
Conceptual study of Pehur High Level Hydropower Project stands completed and its feasibility study is in hand.
Wapda’s Hydro-Electric Power Organization (HEPO)-GTZ of Germany identified low-head projects at 604 potential sites throughout the country which include 13 barrages / head works / dams sites (total 175 MW power potential and 591 sites along canal falls (total 550 MW power potential). PC-II of above schemes was discussed in October 18, 2001 meeting of the Central Development Working Party (CDWP) of government of Pakistan. Rohri Canal (7.42 MW), Machai Branch (2.67 MW) and Pakpattan Canal (3.71 MW) have been taken up as pilot projects for feasibility studies. The main objectives of this development activity is to gear up the national entrepreneur establish elector mechanical equipment and manufacturing industry within the country to reduce project cost and thereby save considerable foreign exchange of the national exchequer besides generating employment opportunities.
Wapda is struggling to ensure a better life for the future generations. At present, efforts are underway to secure its financial viability through better management and recharge its vitality through better operation and maintenance Wapda tends to assure its viability with sustained vitality to stretch out new horizons, perpetuated afresh.
The write is Director of Public Relation in Wapda