Intrnship report on wapda

INTERNSHIP REPORT ON MEPCO (WAPDA)

MBA (E) Marketing 2010

A Directory to the Report

Mahmood-ul-Hassan Abbasi | The Islamia University

Bahawalnagar Campus 1



1. Preface …………………………………………… 03

2. Acknowledgment ……………………………………….. 06

3. Dedication ……………………………………………….. 07

4. Executive Summary……………………………………… 08

5. Purpose of Study ………………………………………… 10

6. MEPCO Introduction …………………………………….. 12

a. History of MEPCO ………………………………. 13

b. Vision, Mission…………………………………… 14

7. Technical Overview………………………………………. 18

8. Organogram ……………………………………………… 20

9. Top Management………………………………………... 21

10. WAPDA Introduction ……………………………………. 26

a. History of Power Sector ……………………….. 28

b. Pakistan’s Power Sector ………………………. 29

c. Power Policy 2002 ……………………………… 31

d. Current Situation………………………………… 32

e. Demand & Supply of Electricity ………………. 35

f. Sources of Renewable Energy……………….. 38

g. Future outlooks and Scenarios……………….. 42

h. WAPDA Vision 2025 …………………………... 44

i. Energy Crises ………………………………….. 48

11. Competitors ……………………………………………… 58

12. Departments ……………………………………………. 62

13. MEPCO HR Department ……………………………… 67

14. SWOT Analysis …………………………………………… 82

15. Porter’s 05 Forces Analysis ……………………………. 86

16. PEST Analysis ………………………………………….. 88

17. My Working in MEPCO ……………………………….. 93

18. Conclusion and Recommendations………………….. 97

19. Financial Analysis ……………………………………… 101

20. References and sources used ………………………… 107





21. Annexure ……………………………………………….108

Some words about the

Report

“Genius makes its observations in short‐hand; talent writes them out at

length.”

Christian

Nevell

Bovee

“Nothing has such power to broaden the mind as the ability to

investigate systematically and truly all that comes under thy

OBSERVATION in life.”

Marcus

Aurelius

As mentioned by the above quotations observing and on site

viewing are a very firm base for learning. We learn a lot more by seeing

the theories, we read in books, applied practically by the pros and by

seeing how they actually put them to work.

Team building and teams are an important part of the business as we see it

today and a large emphasis is given to them in the modern business world.





Organizations make systems to accomplish tasks and to increase

efficiency in their work. When it came to choosing the organization of the

MEPCO became the first thing to the mind of the team members.

The effective system at MEPCO was a piece of art and to see it in working

process was a treat itself.

It is hoped that the conducted study and the compiled report will provide a

source of comprehensive information and a complete internship report on the

topic as well as on the organization.

A Short Thanks Giving





Absolute praise for Almighty Allah, provider of hope, guidance and

knowledge without whose constant remembrance I would not have over come

my moments of despair.

I am grateful to Allah almighty, for enabling me to fulfill this tiring, but

interesting job for the completion of my internship report.

I want to give a special thanks to Mr. Abdul Sattar Zia Dy.Manager (OP)

who gave me their full support and guided me throughout this report and he

should be given credit on top of all for this collection of knowledge.

I like to express my gratitude to Nasir Mahmood Fani (Asstt. Manager

(OP), who helped me by providing all the needed information I needed to

complete this report. I also want to say special thanks to Mr. Imran Khan who

provided me guideness through the course of my internship.

At the end I would also like to thanks my parents who motivated me and

that motivation led to the successful completion of the report and also all my

mates who took time out of their busy lives to help me complete this report.





DedicationI would not be going justice in presenting this internship report without

mentioning the people around me who have been inextricably related with the

completion of this report. I wish to record my honorable regards to all those who

helped a lot in completion of this report.

I also appreciate the valuable services and moral support from my friends.

Finally I wish to place on record, my heart felt thanks, regards, and gratitude to

my parents. Their guidance support and trust enable me to through this report.





Executive summary“Experience is not what happens to you, it is what you do with what happens to

you.”

-Aldous Huxley

I judge my time spent at City Sub Division Haroonabad as being the most

productive and exhilarating experience of my corporate life. Few of the main

highlights of my work experience while at Operation Sub Division are:

Good Leadership

Congenial Work Atmosphere

Challenging Tasks Assignment

Employee Empowerment

Proactive Problem Resolution

Before the details description of the report I started with the summary of work

I done. The basic purpose of this summary is to given an idea about the contents

and efforts made behind the completion of the report to the reader.

It was assigned me to write an internship report of the MEPCO to view the

working environment, function, procedures and behavior of doing work.

Internship was started from ______________ and end on __________, this





period was the real experience of my life and I saw the setup, working process

and formal documentation of the MEPCO.

The MEPCO is a very big organization with several departments in working in

the head office. The human resource department which deals with the internees

has assigned me MEPCO. MEPCO gives me the opportunity to view, how the

books of accounts are prepared, how to fill the different forms, how to behave

with customers and about the record keeping. I worked in Technical section of

MEPCO and learned about distribution system of MEPCO, technical

correspondence between departments and flow of data between departments. I

also learned billing system of MEPCO and also how to apply for new connection

and what is procedure. Here staff gives me opportunity to do practical work. It

was a really nice and fruitful experience for my upcoming practical life.

I would like to conclude by saying that even though every person will

have a different story to tell, the common factor that binds us all is the good work

done by our predecessors in the IUB. I have given more than 100% of my efforts

to keep up that good work and I am sure that my colleagues have done the

same. I am hopeful that as we pass through the corridors of this great institution

into the real world, this legacy will be kept and upheld by the future generation of

IUBians.





Purpose of the studyPurpose of the study was two pronged.

General Purpose To get acquaintance to the MEPCO operations.

To know what sort of changes management brings in managerial

activities.

To see the application of our Professional studies especially.

Specific Purpose Specific purpose of the study includes.

A partial fulfillment as a requirement for the completion of MBA Degree.

To objectively observe the operations of MEPCO in general and the

operations of MEPCO in specific.

To make recommendations or implementation plans for the improvement

of the operations of MEPCO in the light of our professional studies.









About MEPCOMultan Electric Power Company is one of the biggest Distribution

Company of

WAPDA, its area of operation is from Sahiwal to Sadiqabad, Bahawalnager to

Bahawalpur and Tounsa Sharif to Rajanpur and bordering with Sind, Balochistan

and NWFP Map.

The Charter of MEPCO is to provide the reliability, quality and safety of

electric power supply to the consumers in its Jurisdiction.

MEPCO is envisaged for the creation of the resources and engineering plans for

additions, renovation and augmentation of the distribution system in order to

achieve charter.

MEPCO is putting efforts to make it a viable and progressive utility to take

care of consumer's power demand.

Following MEPCO Officers will sit at MEPCO Regional Complaint Centre,

Khanewal Road Multan between 1000 to 1200 hrs on the weekdays mentioned

against each to receive the complaints regarding electricity. They will issue

orders at the spot where possible for immediate disposal of complaints:

Sr.No. Officers Day

a. Chief Engineer / Tech:Director Monday





b. Chief Engineer / CS Director Tuesday

c. Chief Engineer / Op. Director Wednesday

d. Manager (Commercial) Thursday

e. Manager (O&M) Distribution Friday

In case of non availability of any of the officer, next junior to him will sit in

his place.

History of MEPCOWAPDA

The electricity supply service in Pakistan, initially, was undertaken by

different agencies, both in public and private sectors, in different areas. In order

to provide for the unified and coordinated development of the water and power

resources, Water and Power Development Authority (WAPDA) was created in

1958 through WAPDA Act, 1958.

Area Electricity Board MultanThe local areas electricity distribution service was being performed by

various Regions of WAPDA. Then the Area Electricity Board (AEB) Multan, on

the eight AEBs in Pakistan, was established under the scheme of Area Electricity

Boards in 1982, in order to provide more autonomy and representation to

provincial government, elected representatives, industrialists, agriculturalists and

other interest groups in functions of the AEBs.

MEPCOThe environment and structure of the power industry throughout the world

are undergoing dramatic change. The power sector is moving from monopoly to

privatization and from integration to disintegration. To keep pace with this

change, the Government of Pakistan approved a Strategic Plan in 1994 as a





consequence of which the power wing of WAPDA has been unbundled into 12

Companies for generation, transmission and distribution of electricity.

Multan Area Electricity Board was reorganized into one such corporatized

entity under the name of Multan Electric Power Company (MEPCO) with effect

from 14.05.1998, with the aim of commercialization and eventually privatization.

Vision To ensure convenient availability of high

quality power in area of responsibility, in order

to alleviate the poverty, improve quality of life

and make the Industrial and Agriculture Sector

competitive in the World Market.

Mission Ensure convenient availability of high

quality electric power to the people at

affordable price, retaining financial viability

of the Company.





To play and active role to make “Sar Sabz and Roshan Pakistan”

To facilitate agriculture and industrial sector

To ensure un-interrupted and stable power supply to all customers

State-of-the-art customer care for satisfaction of customers

To provide electricity to every village in jurisdiction of company

To establish, construct and operate reliable electricity distribution network

MEPCO’s CommitmentMahmood-ul-Hassan Abbasi | The Islamia University




Improve customer satisfaction

Reduce Line Losses

Weed out corruption

Increase revenue generation

MEPCO web site is launched to provide

the best customer services

Management Philosophy

Open door policy for all

Tackle all problems upfront

Merit, justice, fair play be the hallmark

Transparency in all fields

Accountability of everyone

Corporate Strategy

In the long run the company desires

to become a profit earning concern by

minimizing the line losses and maximizing

the recovery. The company would like to





ensure availability of uninterrupted power supply to the people of the

thirteen districts under its jurisdiction. To ensure that the company is well

managed and deliver efficient and quality service to the electricity

consumer at the minimum cost possible.

CultureMEPCO has its own strong culture. The employees own the company.

Core ValuesThe core value of the company is

that no other company is operating

in this area for this purpose.

Business

StrategyThe business strategy is to provide

electricity to the consumers at

affordable rates. The domestic

consumers using less energy are

charge at very low rates. The commercial, industrial and big domestic

consumers are charged very high rates. In order to develop agriculture

sector, subsidies provided and they are charged less rates as compared

to commercial and industrial consumers.





Technical OverviewArea of Operation

MEPCO's area of responsibility

covers Civil Districts of Multan,

Khanewal, Sahiwal, Pakpattan,

Bahawalnager, Lodhran, Bahawalpur, R.Y. Khan, Vehari, Muzaffargarh,

D.G. Khan, Layyah, and Rajanpur. (Map)

Organizational Structure of MepcoMEPCO comprises of the following eight (08) distributions Operation

Circles, one

(1) Construction and two (2) GSO Circle, as detailed below:

Operation Circles





Grid Stations

Distribution Transformers 109,381 Nos.Capacity of Distribution Transformers 5639.770 (MVA

Jurisdiction Map of MEPC





OrganogramMahmood-ul-Hassan Abbasi | The Islamia University




Top Management



Manager (Operation)

Dy.Manager (OP)

Assistant Manager (OP)



Mr. Guftar Ahmed Chief Executive Officer O/o Chief Executive MEPCO HQ, Multan. Off: No. 061-9210333 Res. No. 061-9210357 Mob: No. 0321-4560001

Mehar Khan General Manager / (Op) Director O/o Chief Executive MEPCO HQ, Multan. Off: No. 061-9210282 Res. No. - Mob: No. 0345-3041021

Formations under Jurisdiction

1. All Managers Operation. 2. Power Control Center

Mr. Pervaiz Akthar Shah Khaga

General Manager / (Tech) Director O/o Chief Executive MEPCO HQ, Multan. Off: No. 061-9210335 Res. No. - Mob: No. 0300-6783100Formations under Jurisdiction 1. Project Construction 2. O & M (Distb) 3. Safety

Mr. Shafqat Asghar Tahir Chief Engineer / (Distb:) Director O/o Chief Executive MEPCO HQ, Multan. Off: No. 061-9210006 Res. No. 061-9210008 Mob: No. 0300-8630580Formations under Jurisdiction 1. Manager (MM) Distb: Muhammad Shakeel Chief Engineer / (Development) O/o Chief Executive MEPCO HQ, Multan. Off: No. 061-9210377





Res. No. 061-9210380-Ext:2076 Mob: No. 0300-7300422Formations under Jurisdiction 1. Procurement 2. Project Finance 3. Planning Scheduling & Coordination 4. DM Environment & Safeguard. Mr. Anjum Naveed Arrain Chief Engr: / (CS) Director O/o Chief Executive MEPCO HQ, Multan. Off: No. 061-9210338 Res. No. - Mob: No. 0300-9686688Formations under Jurisdiction 1. Commercial Directorate 2. Mark, Tariff, Contract Management 3. Surveillance & Investigation

Mr. Hamayon Khan Sadozai Chief Engr: / (P&D) O/o Chief Executive MEPCO HQ, Multan. Off: No. 061-9210348 Res. No. - Mob: No. 0333-6188522 Formations under Jurisdiction 1. O & M Directorate Mr. Faiz Muhammad Khouso Chief Engineer / (Op.) T&G O/o Chief Executive MEPCO HQ, Multan. Off: No. 061-6782286 Res. No. 061- 6221660 Mob: No. 0333-6061667


1. (O&M) T&G 2. GSO Circles (Multan & Sahiwal)

Mian Iftikhar Ahmed

HR & Admn Director O/o Chief Executive MEPCO HQ, Multan.





Off: No. 061-9210388 Res. No. 061-9210389 Mob: No. 0300-4124743Formations under jurisdiction 1. Admn Directorate 2. HR Directorate 3. Labour & Law 4. Security 5. Transport

Syed Mushtaq Hussain Bukhari Finance Director O/o Chief Executive, MEPCO HQ, Multan. Off: No. 061-9210323 Res. No. 061-9210299 Mob: No. 0300-4296652


1. MCA 2. CPC Mr. Tanveer Ahmad Sheikh (Chairman)/Director

Industrialist / MD, Maqbool Textile Mill,

Chowk Sarwar Shaheed, Muzaffargarh.

Board of DirectorsMahmood-ul-Hassan Abbasi | The Islamia University




Ch. Guftar Ahmed (Director)

Chief Executive Officer MEPCO

Mr. Jalal-Ud-Din Malik (Director)

General Manager (NTDC),

WAPDA House, Lahore.

Mr. Muhammad Azhar Iqbal (Director)

General Manager (HR & Admn) PEPCO,

Mr. Mumtaz Khan Manais (Direct)Modern Agriculturist & Dairy FarmerGold Medal from UNO& Pride of Performance from President of Pakistan

Mr. Tariq Mahmood Qurahsi (Director) Engineering Advisor (Power)O/o the Chief Engr: Advisor Plot No. 06 near old MNA Building, G-5/I, Islamabad. Mr. Shahbaz Ahmed Khan (Secretary)Company Secretary MEPCO

Inputs and Outputs of MEPCO





MEPCO Multan Electric Power Company is an electricity distributing company that distributes electricity. Multan Electric Power Company buys electricity from either

WAPDA the Pakistan Water and Power Development Authority and NEPRA or produce their own electricity by using thermal power station and distributes it to the consumers through grids and power stations.Inputs

The inputs of MEPCO include the raw form of electricity coming from the power stations and WAPDA and the purchased electricity from NEPRA. The then distributes this electricity through out the Multan division.Outputs

The output of MEPCO is the processed form of electricity that is in the state of distribution and is distributed through grid stations and transformer. They distribute this electricity through out Multan division to various sub divisions









Introduction of WAPDAWAPDA, the Pakistan Water

and Power Development Authority, was

created in 1958 as a Semi-

Autonomous Body for the purpose of

coordinating and giving a unified

direction to the development of

schemes in Water and Power Sectors,

which were previously being dealt with,

by the respective Electricity and Irrigation Department of the Provinces.

Since October 2007, WAPDA has been bifurcated into two distinct entities

i.e. WAPDA and Pakistan Electric Power Company (PEPCO). WAPDA is

responsible for water and hydropower development whereas PEPCO is vested

with the responsibility of thermal power generation, transmission, distribution and

billing. There is an independent Chairman and MD (PEPCO) www.pepco.gov.pk

replacing Chairman WAPDA and Member (Power) who were previously holding

the additional charges of these posts.

WAPDA is now fully responsible for the development of Hydel Power and

Water Sector Projects.

PEPCO has been fully empowered and is responsible for the

management of all the affairs of corporatized nine Distribution Companies

(DISCOs), four Generation Companies (GENCOs) and a National Transmission

Dispatch Company (NTDC). These companies are working under independent

Board of Directors (Chairman and some Directors are from Private Sectors). The

Companies are administratively autonomous and leading to financial autonomy

by restructuring their balance sheets by bringing their equity position to at least

20 percent, required to meet the prudential regulations and to facilitate financing

from commercial sector (approved by ECC). The Loan Liability Transfer





Agreements (LLTA) has been signed with Corporate Entities and execution of

loan transfer is complete.

History of the Power Sector Pakistan had power generation capacity of 119 MW at the time of partition

from India in 1947. This number has increased more than seven-fold to 19,420

MW. The power sector is Pakistan is a mix of thermal, hydel and nuclear power

plants. The break-up amongst the three types of power sources is approximately

66 percent thermal, 30 percent hydel, 3 percent nuclear and 1 percent was other

sources. The electric distribution network serves about 14 million customers;

with domestic consumption at 20.4 percent, transportation consumption 29.3

percent, commercial consumption at 3.7 percent, industrial consumption at 42.6

percent, agricultural consumption at 2 percent and the rest lost as traction

between Water and Power Development Authority (WAPDA) and Karachi

Electric Supply Corporation (KESC).

The electricity markets in Pakistan has undergone massive changes, with

hydel-electricity as a percentage of total power generated dropping from close to

60 percent to less than 30 percent as of 2009. Consequently, thermal power,

which includes gas, furnace oil and coal powered plants increasing to over 65

percent of all the power generated in Pakistan. This increasing dependence on

thermal power plants especially furnace oil, has put an increasing strain on

Pakistan and its ability to pay for this power source. According to the Oil and Gas

Journal remaining recoverable oil deposits in Pakistan are approximately 310

million barrels as of January 2008. Total output has fluctuated within a range of

about 60,000 – 65,000 barrels per day since 1989. In 2008

according to the Energy Yearbook 2008, Pakistan produced an average of

69,000 bbl/d of crude oil (representing roughly 20 percent of the demand) with

targets of producing 100,000 bbl/d by 2010. Since the mid-nineties the number

Independent Power Producers (IPPs) has increased, providing approximately an

every increasing percentage (currently at 30 percent) of all the power generated

in Pakistan to WAPDA. To meet the need of these IPPs the furnace oil imports of





Pakistan have surged as of late touching the US$ 6 billion mark for 2008. Total

crude oil and petroleum product imports for 2008 were approximately US$ 11.5

billion, representing close to a quarter of all the imports for the country.

Pakistan's Power Sector

Companies and Players Pakistan has two vertically integrated power utilities – the Water and Power

Development Authority (WAPDA) and the Karachi Electric Supply Corporation

(KESC). WAPDA supplies power to all of Pakistan except the metropolitan city of

Karachi, which is the responsibility of KESC. The system of WAPDA and KESC

are interconnected with a 220kV double circuit transmission line. Pakistan has an

installed generating capacity of

19,420 MW according to Pakistan Energy Yearbook 2008 and the proportion of

power generation is as follows:

Water and Power Development Authority (WAPDA) – 11,344 MW

Karachi Electric Supply Corporation (KESC) – 1,756 MW

Pakistan Atomic Energy Commission – 462 MW

Independent Power Producers – 5,858 MW

WAPDA was established in 1958 and entrusted with a massive agenda,

which included generation, transmission and distribution of power along with

irrigation, drainage and flood control. It owns about 58 percent of all the power

generated in the country and serves 88 percent of all the electricity customers in the

country. The privatization of WAPDA is underway, with its distribution network

getting divided into eight electric supply companies. There will be eight distribution

companies (DISCOs), along with three generation companies (GENCOs) and a

national transmissions and distribution company (NTDC).

KESC was incorporated in 1913 and is responsible for generation,

transmissions and distribution to Karachi and all its adjoining localities. KESC has

approximately 1.5 million customers most of them are located in urban areas.





KESC is wholly dependent on thermally generated power to provide the needs of

its customers. As of June 2009, KESC is facing around 450 MW shortfall in its

ability to generate power that is demanded by Karachi and is dependent on

WAPDA to fill in the deficit. In order to maintain transparency, fair competition and

protection of customers the Government of Pakistan enacted the Generation,

Transmission and Distribution of Electric Power regulation act, 1997. Under this act

the

National Electric Power Regulatory Authority (NEPRA) had been created

to regulate the Pakistan’s power sector. NEPRA's primary responsibilities

include the issue of licenses for power production, transmission and distribution

(including the stipulation of licensing fees), specification of electricity tariffs. With

respect to tariffing, NEPRA is also responsible for approving the tariffs negotiated in

connection with bilateral agreements between individual power producers and the

National Transmission and Distribution Company (NTDC). Considerable progress has

been made by NEPRA toward the development of the regulatory management and

future market design for the power sector. All generation, transmission, and

distribution companies are now licensees of NEPRA, and abide by the rules and

regulations created by NEPRA regulators to support reliable and efficient power

sector production.

The Private Power and Infrastructure Board (PPIB), the state agency

responsible for regulating Pakistan’s power sector, acts as a one-stop shop for

investors interested in entering the market, and helps companies negotiate power

purchasing agreements and obtain licenses. PPIB came into existence after the

2002 power policy came to fruition, acting in the name of the Pakistani Government

to provide advice and guidance for the implementation of power plant projects.

PPIB's efforts are focused on the privatization of public sector companies, as well

as on attracting new investment from the private sector by providing incentives under

new and improved policies. PPIB also provides guarantees to private investors for

the performance of government entities (such as WAPDA, KESC etc., of which

KESC has been privatized). Currently, the transmission, distribution and retail

supply of electricity in Pakistan is largely undertaken by WAPDA, whose various





branches have been recently separated into distinct companies in an attempt to

create a more competitive, market- oriented environment. PPIB monitors

litigation and international arbitration for and on behalf of Government of

Pakistan, and, finally, assist the regulatory tariffs for new private power

projects. The Alternative Energy Development Board (AEDB) was founded in

May 2003 for supplying wind, solar and mini/small Hyde power generated

electricity in remote regions of Pakistan. AEDB is also responsible for developing

the country's medium and long-term promotion policy for renewable energy sources.

In addition, its functions include the coronation of joint ventures with the aim of

transferring foreign technologies to upgrade the existing alternative energy

technologies in Pakistan. The AEDB has a mandate of 10 percent of the total

installed

Power Policy 2002

A new power policy was enacted in 2002, it closely resembled its

predecessor dating from 1994, but it has broader range of applications. Entitled

“Policy for Power Generation Projects – Year 2002”, the new power law applies both

to private investment projects and to public-private partnerships and public-sector

power plant projects. The law also makes it possible for investors not only to

participate in public tendering, but also to propose power plant projects on their own.

With the new law, respective provincial governments are responsible for approving

plants with ratings below 50 MW. A two-component system of remuneration has bee

defined for power providers: part of the remuneration depends on the output of the

respective plant (capacity purchase price, CPP), and the rest if a function of the

source used for the energy generation (energy purchase price, EPP). The later is

supposed to account for 34 to 40 percent of the total remuneration. The new

provisions for 2002 give preference to projects involving the use of domestic energy

resources, i.e. mainly water, coal and natural gas. Moreover, import duties on plant

components have been reduced to a mere 5 percent of the standard rate.

Incentives Provided in Policy Mahmood-ul-Hassan Abbasi | The Islamia University




Complete security and guarantee against political risk, foreign exchange risk,

taxation risk and contract risk

Pakistan needs 5,529 MW of electricity by 2009 – 2010

Special incentives to use indigenous and locally available energy sources such

as hydel, coal and gas instead of oil fired power stations. Secured return on

investment on coal/gas based power projects, by adjusting the tariffs to provide

the incentive

Under the pre-qualification criteria, main sponsors to have 20 percent equity

stake. Additionally, the main sponsors must have direct and relevant

experience in development, implementation, ownership and operation of the

facilities

Current Situation

As of June 2009 Pakistan is facing 6 – 10 hours off rotating black-outs

(loadshedding) because of the ever increasing gap between demand and supply.

With an installed capacity of 19,420 MW and effective generation around the 14,000

– 15,000 MW and demand in the 16,000 – 17,000 MW there is a shortage of 2,000 –

3,000 MW. The situation is exacerbated by the unavailability of gas and/or oil for

generating the electricity, unpaid due by various parties, issue of revolving debt

among the related parties and transmission issues. Official estimates are that 5 – 12

per cent of economic production in Pakistan is lost every year due to load

shedding.

Based on the World Bank draft report on Pakistan's Investment Climate,

Pakistani power sector sells electricity to consumers at a rate that is 60 percent

higher than in India and 40 percent higher than in Bangladesh. The report claims

that apart from technical issues, corruption has impeded access to power supply to

business firms. 84 percent of business firms have allegedly had to make “informal

payments” for obtaining electricity services. This shows an increase from 25 percent

of the firms that had reported making such payments in 2002. In cities like Lahore,





Quetta and Hyderabad, almost every business that applied for a power connection is

reportedly asked to make an informal payment. Power outages are universal, with

95 percent of the businesses reporting power outages at some time during the day.

The total annual incidence of power outages in Pakistan, according to the report,

comes to 945 hours. Outages leading to forced overtime, waste of material,

damaged equipment and an added maintenance averaged at 10 percent of annual

sales.

This figure has increased from about six percent in 2002. The report has

recommended that if uniform tariff is applied nation wide, timely payments must be

made to cover the difference between determined and notified tariffs; there must be

a substantial reduction in transmission, distribution and collection losses, which

currently account for over a quarter of the net generated power in Pakistan.

Fault lines identified are:

Electricity price: The price of electricity is on the higher side relative to other

South Asian countries. Even with the subsidies, system losses and supply quality

problems, electricity tariffs in Pakistan are 60 percent higher than in India and about

40 percent higher than in Bangladesh

Losses: Technical and collection losses impose a severe strain on the

financial sustainability of Pakistan’s power sector. The country’s electricity system

loses more power than all comparators, apart from India, which lost a quarter of its

generated electricity in 2006/07. According to Pakistan Energy Yearbook 2008,

transmission and distribution losses in the public grid were estimated at 20.3 percent

in 2007-08 against 23.2 percent for 2002-03.

Access to power: Access to power supply is a serious challenge for firms

although the pattern differs across location, type and size. Delays in getting

electricity connections has become worse for firms and this barrier to entry and

constraint on expansion. The waiting period for a new connection went up to from

around 37 to 41 days from 1999-2002. The average waiting period in 2006





deteriorated to 92 days, placing Pakistan among the worst performers in the world,

second only to Egypt amongst its comparators.

Corruption in the electricity sector: In addition to technical issues, other

factors impede low-cost access to power supply. A stunning 84 percent of the firms

that applied for connection had to make informal payments in order to obtain

electricity services — a startling increase from the 25 percent firms that reported

making such payments in 2002.

Supply interruptions: Firms facing unreliable power supply with frequent

outages are disproportionately affected in different regions of Pakistan. The firms

face significant interruptions in power supply, disproportionate to the available

generation capacity. Outages are not just pervasive but almost universal, with 95

percent of firms reporting power outages. In case of Pakistan, the total annual

incidence of power outages comes to 945 hours, comparable to Bangladesh (1105

hours), which is the worst case among the comparator counties in both

frequencies and number of outages

Power interruption losses: Power interruptions cause severe financial

losses for all Pakistani firms, and affect small firms and the textile sector the most.

Outages, leading to forced downtime, waste of materials, damaged equipment, and

added maintenance average 10 percent of annual sales averaged over the entire

manufacturing sector. This figure has almost doubled from the reported six per

cent in 2002 and is, again, second only to

Bangladesh among comparator countries

The World Bank report recommends that the power sector needs to achieve

financial sustainability to enable better maintenance and future expansion. The report

recommends: “If uniform tariff is applied nation-wide timely payments must be made to

cover the difference between the determined and notified tariffs; and there has to be a

substantial reduction in technical (transmission and distribution) and commercial

(collection) losses which currently stand at a quarter of net generation due to

overloaded, under-invested, and under-maintained networks”.





Thermal efficiency in Pakistan in power generation is around 32 to 35

percent, against the global average of 54 percent. Pakistan can close this gap and

increase power generation from thermal plants by a colossal 60 percent just by

adopting new technology and production techniques. Further, distribution losses are

around a quarter of the generated power. By reducing this to a more manageable 10

percent, power available can be increased by a further 2,500 MW. Adding the

benefits of just these two suggestions increases the effective power available by

4,000 – 5,000 MW, which would cut the deficit and in fact give the country breathing

room till 2010 when other power generation projects come online.

Demand and supply of electricity: According to the Ministry of Water and Power, the deficit of power for the

years 2008-09 and 2009-10 is 4,025 MW and 5,529 MW respectively.

Projection for demand and supply of electricity (2008-2010)

Load pattern and peak load hours:

The electrical load pattern in the country varies from season to season;

during summer season there is an increase in the inductive load while in the

winter season increase in resistive load has been observed. The peak hours of

the country also vary from season to season depending the time of sunset. As

an average, peak hours are generally taken as between 06:00 PM to 10:00 PM.

A short span of peak, about one hour, also occurs in the morning but this being

about 20 percent less in magnitude than evening peak and is not very important

for generation planning but it is significant for system operation and planning.

Maximum load:

Maximum on the different power plants during the year 2007-08 is given

in below table:





WAPDA - Supply and demand estimates:

Electricity consumption in the country is growing steadily. The projected

committed power generation and peak demand in the areas of WAPDA for the

year 2009-10 and 2010-11 is given as under.

Consumers:





Having consumption of 45.9 percent of electricity, domestic sector is the

major consumer of electricity in Pakistan, followed by industrial sector 28.2

percent, agricultural 11.5% and commercial sector 7.6 percent.

Electricity consumption by sectors 2007-08 (Percentage of Total 73,400

GWh)

The sector-wise and province-wise consumption of electricity is given in the following charts:

Electricity consumption by sector (GWh)

Sectoral electricity consumption by Province 2007-08 (GWh)





Inefficiencies and Losses The Pakistani power sector based on independent researchers and

multilateral organizations such as World Bank and Asian Development Bank is

plagued with production inefficiencies at every level. On-line transmissions

losses are estimated at 20 per cent which skews the government's official

production figures. With 20 per cent losses in transmission due to dilapidated

distribution system, low conductivity of transmissions lines and theft of power the

effective power generated is as follows: Installed capacity 19,420 MW – Productivity

losses (10%) = Available capacity of approximately 17,478 MW - Transmission

losses (20%) = Effective Generation Capacity of approximately 14,000 MW. If we

compare this effective generation capacity against effective demand of (16,500

MW), Pakistan is facing a shortage of 2,500 MW or 12 percent of installed

production.

One prominent example of transmissions losses are the transmission

wires in Karachi area. These lines are made of steel instead of the more

conductive copper. The reason for using steel for the lines is due to the close

proximity of the steel mill and therefore cheaper purchasing price of steel

compared to copper. Incidentally, these

steel wires in addition to contributing to power losses are also subject to theft as

this scrap steel is sold to dealers and traders.

Finally, government neglect of power infrastructure has left many cities in

Pakistan still using antiquated energy infrastructure. This state of affairs is

complicating privatization efforts as investors are faced with a foundation that





has crumbled from years of neglect. Ironically, this has in turn required the state

to spend large amounts of money to update the infrastructure – to make it

attractive for investors before the privatization can take place.

Sources of Renewable

Energy

Hyde powerPakistan's total Hyde power potential has been estimated between 40,000 MW

to 50,000 MW of which roughly half (20,000 – 25,000 MW) can be harnessed

relatively easily, and approximately 6,400 MW of which is actually being exploited.

More than 1,000 MW micro/mini Hyde power potential is available in the northern

mountainous region of the country, of which less than 1 percent is developed. Due to

anticipated growth in demand and of the fact that only about 20 percent of the

available Hyde power potential is being utilized, the “Vision 2025” development plan

provides for vigorous, multi-stage development of Hyde electric power.

Wind EnergyEven as recently as 2003, Pakistan had not installed a single wind energy

conversion system with a generating capacity above 500 W. There were only a

small number of micro-plants (300 – 500 W) for generating electricity, and

roughly 30 wind power installations are in use for pumping water in the coastal

regions of Baluchistan and Sindh provinces. Most notably along its 900 km

coastline and in a number of North-West Frontier valleys, Pakistan possess

about 50,000 MW of economically exploitable wind-power potential. In July 2006,

Turkish based Zorlu Energji Grubu signed a letter on intent to install a 50 MW

wind farm in Pakistan. Zorlue would operate the wind farm for 20 years; it was

inaugurated in July, 2009. Zorlu has indicated that it would like to install an

additional 2,000 MW of renewable energy capacity in Pakistan by 2015.





Nine companies in addition to Zorlu have been given licenses by the

Alternative Energy Development Board of Pakistan to generate electricity from wind

power. All the companies will generate 50 MW of electricity for the next 20 years.

The companies are: New Park Energy Ltd.,Tenaga Generasi Ltd.,Green Power

Ltd.,Wind Power Ltd.,Zyhper Power Ltd., Win Power Ltd.,Milergo Pakistan Ltd.

And Beacon Energy Ltd.

Solar EnergyPakistan has very good overall solar-energy potential as the average

insulation rate amounts to approximately 5.3 kWh/m2. The south-western

province of Baluchistan offers excellent conditions for harnessing solar energy.

There, the sun shines between 8 and 8.5 hours daily, or approximately 3,000

hours per annum. Despite these favourable conditions, the use of solar energy for

generating energy or for heating homes is negligible. Photovoltaic systems are

used primarily for producing electricity in rural area. As far back as the early

1980's the Government of Pakistan had 18 PV systems with a composite output of

440 kW installed in various parts of the country. Due to lack of technical knowledge

and maintenance capabilities no further systems were added and seven of the

installed PV systems have stopped working. However, with the establishment of

AEDB, this time round will ensure sustainability of such projects by providing a

workable model on commercial lines.

Nuclear EnergyPakistan has two nuclear power plants, Chashma-1 and Kanupp, with 300

MW and 125 MW respectively, of installed capacity. The Pakistan Atomic Energy

Commission operates both nuclear plants. Pakistan's first nuclear reactor was set-

up with the help of Canadians in 1971 at Kanupp near Karachi; with an installed

generating capacity of 125 MW. Kanupp-2 and Kanupp-3 are under-construction

and are being built by the Pakistan Atomic Energy Commission (PAEC). Both

these power stations are park of Pakistan's civilian nuclear program and will have





an installed capacity of 1,000 MW for each. Kanupp-2 and Kanupp-2 nuclear

plants will be based on the model of CANDU nuclear reactor and will be under

IAEA safeguards.

Pakistan is currently working on a third nuclear power plant (Chashma-2),

with the help of China National Nuclear Corporation. The main part of the plant was

designed by Shanghai Nuclear Engineering Research and Design Institute

(SNERDI), based on the Qinshan Nuclear Power Plant (pressurized water reactor).

The plant will have 325 MW of installed capacity, with an estimated budget of Rs 52

billion and could be completed by 2011.

The third nuclear reactor is Pakistan Nuclear Power Fuel Complex, a 1,000

MW pressurized water reactor under construction by PAEC. The main part of the

plant is designed on the model of Chasma Nuclear Power Plant and Candu reactor.

The power plant is expected to be operational by 2010.

Independent Power Producers (IPP’s)The Independent Power Producers (IPPs) is an entity, which is not a public

utility, but which owns facilities to generate electric power for sale to utilities and end

users.

Pakistan has allowed IPPs to operate in its energy sector since 1994 when the

Private Power Generation Policy was established to counteract the increasing

inefficiency in state electricity generation, causing frequent and lengthy outages

during the early 1990s. Today 17 of the largest IPPs in the country represent more

than 30 percent of the installed electricity generation capacity and the government is

working to raise both this percentage and the number of private companies

operating in the sector in order to meet a growing demand and part of the “Vision

2025” strategy. With the current energy deficit emerging in late 2006 and projected

to expand to 5,500 MW in 2010 the Government of Pakistan and the related players

in the energy sector are in the process of increasing the power generated from

existing and new power producers. As mentioned a new power sector policy of 2002





further increased incentives for new players to build and operate power generation

facilities

The 17 largest IPPs in Pakistan all operate thermal generating plants

only. In addition to the 17 major IPPs, numerous small IPPs with total installed

capacity of 100MW or less have been active in the Pakistani Power Sector since

1994. According to the Pakistan's Energy Yearbook, IPPs had an installed

capacity of 5,822 MW, representing over 30 percent of the generating capacity of

the country. In two international shows this year, PPIB unveiled three new large-

scale projects for investors that included a

400MW to 500MW gas project called Uch II, a 400MW dual-fired project to supply

the textile industry in Faisalabad, and another dual-fuel project near the load center

in the industrial city of Lahore. Additional opportunities were presented in the form of

smaller hydelpower projects. The shows elicited an immediate response from

investors, including a proposal from AES to develop a US$ 1 billion coal project in

Thar, and the announcement of increased investment to the tune of US$ 1 billion

from CDC Group’s Globeleq, which already owns 50% of the Lahore-based

Orient Power.

Future Outlook and Scenarios

Pakistan at the present can provide only 50-55 percent of its population with

electricity, albeit intermittently. The government has made it a priority to add 3,000

MW of electricity by end of 2009 and to add approximately 15,000 MW by 2015 in

order to reliability provide electricity to an increasing percentage of the population.

Electricity demand outstrips supply by in excess of 3,000 MW in the summers

and 2,500 MW in the winters with the gap expected to grow and reach almost

5,500 MW by end of 2010. In this scenario is it impossible for the government of

Pakistan to provide power and fill this gap, rendering Independent Power

Producers (IPPs) viable and imperative. IPPs provide approximately 30 percent of

the country's generation capacity and with this addition of 2,200 MW, IPPs will

provide more than 40 percent of the country's generation capacity.





To prevent the electricity deficient from getting out hand and to minimize

future supply deficits, Pakistan has adopted a system development plan called

“Vision 2025' that targets to add 35,000 MW by the year 2025 to help sustain

growth of the Pakistani economy and to provide electricity to the under served

rural areas of Pakistan. This number of 35,000 MW is nearly twice as much

power that was available to Pakistan at the end of 2002 and 175% of the installed

capacity as of 2009. Around two thirds of the additional power (22,563 MW) is

slated to come from Hyde electric power plants. New gas-fired power plants are

supposed to contribute 13% (4,680 MW), along with coal-fired power plants of 13%

(4,350 MW). New nuclear power plants with a total installed capacity of 5% (1,800

MW) are planned. Finally, renewable sources of energy are supposed to account for

more than 4% (1,500 MW) of the overall newly installed capacity. The planned

expansion will cost approximately US$ 30 billion. In view of Pakistan's high national

debt and persistent budget deficit, the government always positioned this as a largely

private effort with the hope of attracting private investors and strategic players.

Pakistan has decided to launch two new nuclear power projects at

Chashma worth Rs 129.37 billion that would generate 640 MW power to induct

into national grid. These plants include Chashma Nuclear Power Project (c3) and

Chashma Nuclear Power Plant (c4) and government has allocated Rs 100 million

for these nuclear power projects in the Public Sector Development Programme

(PSDP) 2008-09.

Two more private power projects have obtained financial closure for

establishment of 420 megawatts electric power stations. The two projects,

Hubco-Narowal Power Project and Liberty Power Tech Project have achieved

financial closure for 220 and 200 megawatts electric power stations and have

gone into construction phase. The

sponsor of HUBCO-Narowal project, located at Narowal, is the Hub Power

Company Limited, while the lenders of project include Habib Bank Limited (HBL),

National Bank Limited (NBP), Allied Bank Limited (ABL) and Bank Al-Falah. The

sponsors of Liberty Power Tech Project, located near Faisalabad, are Liberty





Mills Limited and Mukaty Family, while lenders of project are Allied Bank Limited

(ABL), Habib Bank Limited (HBL), National Bank Limited (NBP), Faysal Bank

Limited (FBL), Meezan Bank Ltd and Bank Al-Falah Ltd, etc. The estimated

investment in HUBCO-Narowal project is approximately US$ 274 million while in

Liberty Power Tech Project it is US$ 240 million, expected to be commissioned

by March 2010 and December 2010, respectively. With these two projects having

started construction, a total of twelve (12) new IPPs are now under construction

through government's power policy and will add a capacity of 2,539 megawatts by

end of 2010.

WAPDA — vision 2025

The high profile vision 2025 was unfolded at a seminar arranged by

WAPDA and inaugurated by the President Gen. Pervez Musharraf in Lahore on

Monday. The Chairman Water & Power Development Authority Lt. Gen Zulfiqar

Ali Khan highlighted WAPDA vision which envisages meeting the entire needs of

water and power generation requirements of the country at a total expenditure of

45 billion US dollars.

Inaugurating the seminar on "Water Resources and hydropower

development programme; vision 2025", President Musharraf, attired in his





Military uniform, commended the efforts of his comrade General Zulfiqar to put

the long-ailing WAPDA on the right path. Gen. Musharraf disclosed that former

prime minister Nawaz Sharif sought Army's help in managing the affairs of

troubled WAPDA. "Accepting the PM's suggestion, I asked Lt. Gen. Zulfiqar Ali

Khan to assume the charge of Chairman WAPDA, though he (Zulfiqar) was a bit

shy.... but he took up the great challenge and proved his mental by plugging in

the leakages and pulled out the corporation for a turnaround," General

Musharraf remarked.

He said that WAPDA was on a right path and marching towards a great

recovery. The Vision 2025, he said, was also a marvellous achievement under

which short-term strategies have been developed for the good of the country.

Elaborating WAPDA Chairman, said, six of the schemes that form part of Vision

2025 are due to be launched next month. They include the Gomal Dam in

NWFP, Hingol Dam and Mirani Dam in southern Balochistan, the Greater Thal

Canal in Punjab and the Right Bank Outfall Canal in Sindh. The cost of these

five schemes is estimated at nearly 5 billion dollars. At current prices, the total

cost of the Vision 2025 programme — which also includes Basha Dam on the

Indus River in the Northern Areas, 320 kilometers upstream of Tarbela Dam — is

estimated at $45 billion.

Chairman said that these six projects, costing 6.29 billion dollars, would help

generate 2817.4 MW power besides creating water storage facility of 5.04 Million

Acre Feet (MAF) which will bring 1,936,200 areas of land under cultivation in all

four provinces of the country.

He said that the objective of the seminar was to seek participation of the

interested parties including national and international investors for the fast track

and cost effective implementation of the projects. "The seminar aims to share

details and status of projects, of foreign and local investors," he said.





The Chairman said that due to sedimentation, Tarbela, Mangla and

Chashma reservoirs have already lost 4.26 million MAF capacity and this loss

would be 5.94 MAF by year 2010 which was almost equivalent to the original

storage capacity of Mangla Dam.

He lamented that so far existing reservoirs could store 17.1 MAF water

out of total storage potential of 64.4 MAF which was only 11 per cent of available

surface water. "We can cultivate around 22.5 million acre cultivable land by

using the available water resources," he observed. He added that same was the

case of hydropower generation as only 16 per cent of our total capacity could be

achieved.

General Zulfiqar Ali Khan said that according to a study, we may face

power shortage of 650 MW by the year 2006. However, by harnessing the

potential to generate 40,000 MW, this shortage could easily be overcome. He

said that during the last 20 years, the share of hydropower in total generation

had reduced from 60 per cent to 20 per cent.

The Vision 2025 is to be implemented in three phases. The federal

cabinet approved the Vision 2025 programme in August last year. Under Phase

1 of the three-phase programme, WAPDA has been given the go-ahead to

undertake detailed engineering and feasibility studies for Basha Dam and the

Greater Thal Canal, as well as for Kachi Canal in Balochistan, the Chashma

Right Bank Canal in NWFP, the Thal reservoir project in Punjab, and three

projects in Sindh: Riverne Area Development, Thar Canal and Sehwan Barrage.

The total cost of these projects is estimated at $11.71 billion (at the current

exchange rate of 64 rupees to the US dollar).

Priority hydroelectric generation projects in Phase I include: Jinnah ($162

million), Malankand-III ($80 million), Allai Khawar ($110 million), Golen Gol ($104

million), New Bong ($110 million) Khan Khawar ($86 million), Duber Khawar

($109 million, and Pehur High Level ($8 million).





In January this year, the federal government also approved Phases II and

III of the Vision 2025 programme. Hydroelectric project to be built under Phase II

include: raising the height of Mangla Dam to increase its reservoir storage and

power generation capacity ($850 million), Thal Reservoirs ($58 million), Doyian

($346 million) Neelkum-Jhelum ($1.5 billion), Kohala ($1.4 billion), Matiltan ($110

million), Gulpure ($150 million), Abbasian ($250 million), Rajdhani ($113 million),

and several combined cycle power generation projects ($2.9 million).

Phase III includes 16 schemes, including dams and generation projects:

Basha ($6 billion), Dasu ($3.1 billion), Patan ($2.97 billion), Thakot ($2.56

billion), Bunji ($2.69 billion), Munda ($1.56 billion), Chakothi ($167 million),

Naran ($262 million), Suki Kinar ($750 million), Patrind ($167 million), Azad

Pattan ($266 million) Karot ($252 million), Thar Coal Project ($1.6 billion) Lakhra

Coal Project ($360 million, and several combined cycle power generation

projects ($1 billion).

Vision 2025 is the most ambitious development programme in Pakistan's

history, and its implementation will, of course, depend on the country being able

to find the money to finance it. Even so, its basis reflects very creditably on both

— the Federal Government.

Among the international lending agencies that have shown interest in co-

financing the Vision 2025 programme is the Asian Development Bank (ADB).

However, it is not yet clear as to what will be the size of ADB's investment.

Before firming up its investment plans, the ADB is expected to consult other

lending agencies and donor countries that may be interested in providing funding

for the programme. A report prepared by WAPDA and the federal government on

Vision 2025 was circulated amongst ADB's partners earlier this year and is said

to be under consideration by them.

The World Bank is also said to have shown interest in partly financing the

Vision 2025 programme, but its support is said to be conditional upn counterpart





financing by the Pakistan government and WAPDA. According to the Economic

Affairs Division, financing for the progrmme is also being discussed directly with

China, Saudi Arabia, the United Arab Emirates and several other friendly

countries.





Crisis of Electrical Energy in Pakistan and Future guidelines for Policy

makers

INTRODUCTIONThroughout the world electricity is the most widely used and desirable

form of energy. It is a basic requirement for economic development and for an

adequate standard of living. As a country’s population grows and its economy

expands its demand for electrical energy multiplies. If this demand is not met

adequately a shortage in supply occurs. This shortage can assume crisis

proportions.

Pakistan has been facing an unprecedented energy crisis since the last several

years.

The problem becomes severe during the summers. Large numbers of

users have to be disconnected from the energy supply system to prevent

overloading the generating stations (load shedding). On occasions the urban

dwellers had to suffer load shedding of 8-10 hours everyday. During the same

time rural consumers suffered it for up to 20 hours at a stretch.

Almost two years ago the Chairman Water and Power Authority (WAPDA)

admitted that his organization could not meet the current demand for electricity.

It is surprising such a senior person took so long to discover this problem. The

government talked about Pakistan’s supposedly booming economy but failed to

understand the need for meeting the energy needs of the boom. General

Musharraf (R) (ex-President) after becoming Chief Executive used to talk about

building dams especially Kalabagh Dam. Very few power plants have since been

set up. The present energy crisis is totally due to lack of forecasting and

planning.





A general block diagram of power system is presented in Figure 1.

Any power system has 3 major parts:

1. Generation system

2. Transmission system

3. Distribution system

Generally speaking the major technical causes of the shortfall in the

availability of electrical energy in Pakistan are:

• Insufficient installed generating capacity.

• Transmission system unable to transmit the greater load now imposed upon it.

• Grid Stations and related equipment unable to carry the load imposed.

• Distribution System was built to carry a smaller power and hence unable to

cater to existing demands [Gelling at el 1988].

The major management-related causes of the crisis are:

• Management Information System (MIS) not fully utilized.

• Failure to forecast and plan for the future.

• Failure to set up new generating stations in time.

• No new Transmission/Distribution networks & grid stations setup.

• Unexpectedly rapid growth of load.

Present Situation of Crisis

Total generation of electricity by different sector in Pakistan is presented

in Table 1.

Share of different kind of power generating plants in Pakistan is presented

in Figure 2.

Historical peak demands of Pakistan from year 2002-2007 are presented

in Table 2.

Forecast of demand and generation for the years 2009-2020 is given in

Table 3.

A careful examination of the tables 2 and 3 clearly indicates that although

Pakistan’s installed generating capacity will increase, the shortfall will





continue to exist [Federal Bureau of Statistics 1998]. The government

must take steps to overcome this situation.

Short term solution

1. Line losses controlThe methodology that will provide immediate relief is the conservation and

judicious use of whatever little energy is being produced in the country. The

current losses in the system are 24% of the total power generated. These

include losses incurred during transmission and distribution as well as due to

theft. Wasteful consumption such as businesses remaining open till late at night

and unnecessarily brightly lit also contribute to losses. By reducing these to 10 %

we can save up to 300 MW of energy. The government should enforce shutting

down businesses and forbidding excessive and unnecessary lighting during late

hours. Zoning should be enforced in cities. Market zones can have their power

switched off (load shedding) at scheduled hours. As a benefit of service

WAPDA employees are allowed free use of electrical energy for their

domestic use. This facility has been grossly misused [Federal Bureau of

Statistics 2002]. It is recommended every WAPDA household be given a raise in

salary and the free electricity facility being withdrawn.

2. Improving Power generating capacityIt is an unfortunate fact that WAPDA and IPPs thermal power plants are

running at an average plant factor of about 50 percent. This means they are

producing only 50% of their installed capacity. They are not being used to deliver

their full power. Internationally it is quite usual to have thermal power plants

operating at 75 to 80 percent plant factor.

Operating the power stations at higher plant factors demands better

maintenance procedures there. It is felt that operating the plants at a higher plant

factor will cause them to deliver 20 to 30 %more energy to the system. This will

alleviate the present shortage to a significant extent. Improving the power plant

factor of the existing plant is far more economical then setting up new power

plants.





Medium Term solutions

The policy makers of Pakistan talk about making dams and setting up

nuclear power plants but do not understand the importance and benefits of

alternate energy (renewable source of energy) sources such as solar, windmill

energy, etc. These are cheap and quick methods for producing electricity.

Pakistan is very blessed because abundant solar energy is available. Similarly

wind energy is readily available in the coastal areas and throughout the winter

months in Baluchistan. These energy sources if tapped can be of great help in

reducing the current demand supply gap.

1. Wind EnergyAmerica, Canada and China have invested large sums of money into

research and development in order to obtain maximum energy from wind. Wind

power is now the fastest-growing energy source worldwide [US Department of

Energy 2002]. Total worldwide production of electrical energy from wind is

around 30000MW. Germany, with over 12,000 megawatts of wind power at the

end of 2002, leads the world in generating capacity. Spain and the United

States, at 4,800 and 4,700 megawatts, are second and third. Many predict that,

with the development of more efficient wind turbines, wind energy will provide an

increasingly large proportion of electrical production in the U.S. Tiny Denmark is

fourth with 2,900 megawatts, and India is fifth with 1,700 megawatts. Although a

score of countries now generate electricity from wind, a second wave of major

players is coming onto the field, including the United Kingdom, France, Italy,

Brazil, and China. However, land clearing for vast "wind farms" may cause

concern to environmentalists.

2. Solar EnergyPakistan has high potential of renewable energy sources. A very large

part of the rural population does not have the facility of electricity because they

are either too remote or it is found too expensive to connect their villages to the

national grid station. Pakistan being in the sunny belt is ideally located to take

advantage of solar energy. This energy sources is widely distributed and





abundantly available in the country. During last 15 years Pakistan has shown

quite encouraging progress in the use of photovoltaic cells. Currently electrical

power derived from solar energy is being used is being used in some public

parks. These include Khalid bin Waleed Park in Peshawar and the Race Course

Park in Rawalpindi. The Public Health department has installed solar water

pump for drinking purposes in some parts of the country. Both public and private

sector are playing their role in up grading of photovoltaic system in the country. If

this technology is used in large scale commercial production of electricity the

problem of energy shortage can be substantially reduced.

Long term solution

1. Coal Potential in PakistanPakistan has the 5th largest coal reserve in the World, amounting to

approximately 185.175 billion tones. That has largest reserve in the country that

is approximately 75.5 billion tones. Pakistan can generate more than 100,000

MW of electricity for next 30 years if it uses all coal available to it. At present

Pakistan generates only 0.79% of its total electricity from coal [WAPDA Annual

report 2007-08]. Coal contributes approximately 39% of the total global primary

energy demand. Share of coal in total electricity produced in different countries is

PAKISTAN 0.79%

USA 56%

UK 58%

China 81%

2. Hydro-electric power potentialPakistan has a huge potential to produce electric power from hydro-

electric power plants.

In table 5 presents a view of electric power generation with power plants whose

feasibility study has been completed or is under process. Construction of all

these plants gives almost 55,000 MW. This easily meets the electrical energy

requirement of Pakistan for next 20-25 years.





From the table 4, 5 we can see that hydro-electric power has a great potential.

Some details of these projects are given in table 4, 5.These plants can give low

cost electricity. As they are run of river plants, they can be easily installed with

minimum cost and in short time.

ConclusionThe policy makers of Pakistan do talk about making dams and setting up

nuclear power plants but do not understand the importance and benefits of

alternate energy (renewable source of energy) sources such as solar, windmill

Tidal, Wave, and Geothermal energy, etc. They are cheap and quick methods

for producing electricity. Pakistan is a very blessed country because solar energy

is available in most cities all year round. Similarly wind energy is readily available

in the coastal areas and in interior Baluchistan during winter. These energy

sources if tapped can be of great help in reducing the current demand supply

gap. The possibility of using coal and hydro-electric run of river plants must also

be considered seriously for the long term.

Table 1. Total capacity of electric power generation of Pakistan in 2009





Table 2 Historical peak demand 2002-2007

Table 3. Forecast Supply and demand position from 2009-2020 in MW

Table 4. Pakistan’s Total Power Potential





Table 5. Run of river projects with their feasibility status

Fig.1. Block diagram of power system

Fig.2. Power generation in Pakistan by different sectors





Fig. 3. Power generation in last few years by WAPDA and KESC









Product LinesMultan Electric Power Co. distributes the electric power/supply to

Domestic, Commercial, Industrial and Bulk consumers. The company also

provides the maintenance of Electrical Equipments.

Competitors:

Faisalabad Electric Supply Co. (FESCO)

Gujranwala Electric Power Co. (GEPCO)

Hyderabad Electric Supply Co. (HESCO)

Islamabad Electric Supply Co. (IESCO)

Peshawar Electric Supply Co. (PESCO)

Quetta Electric Supply Co. (QESCO)

Karachi Electric Supply Company Ltd. KESC

Overview of the Competitors:

Faisalabad Electric Supply Co.





FESCO Distributes and supplies electricity to about 2.76 million

customers within its territory with a population over 26.5 million under a

Distribution License granted by National Electric Power Regulatory Authority

(NEPRA) pursuant to the Regulation of Generation, Transmission and

Distribution of Electric Power Act, 1997 (NEPRA Act). Geographical service area

of FESCO comprises Faisalabad, Sargodha, Mianwali, Khushab, Jhang,

Bhakker, T.T Singh and Chiniot.

Gujranwala Electric Power Co.

Gujranwala Electric Power Company (GEPCO) has been setup over area

of jurisdiction and network of former Area Electricity Board, which was created in

early eighties. It encompassed the areas of existing Districts of Gujranwala,

Hafizabad, Sialkot, Narowal, Gujrat and Mandi Bahauddin. GEPCO was

incorporated on 25th April 1998 and obtained Certificate for commencement of

business on 5th June 1998. Management and Administration is entrusted to a

Board of Directors. We have about 2,356,305 connections; Average monthly

Collection for the year 2008-09 is approximately 3.2 billion rupees.

Hyderabad Electric Supply Co.

Area Electricity Board (AEB) Hyderabad was one of the eight AEB's

constituted through amendments in WAPDA Act during 1981. Later on

Government of Pakistan approved revamping of WAPDA power sector in April

1998, resultantly twelve corporate entities were formed, Eight Distribution

Companies (DISCOs), one National Transmission and Distribution Company

(NTDC) and three Generation Companies (GENCOs). Now one more GENCO

has been established. All these companies have been incorporated under

Companies Ordinance 1984.





Islamabad Electric Supply Co.

IESCO aspires to become a major, diversified, transitional, integrated

power supply company in Pakistan, with a strong environment conscience,

playing a national role in electricity supply and distribution. At IESCO, we believe

that time has come for us to set our sights beyond just being a provider of

conventional services. We expect to carry the spirit forward by training and

leading a crack team through the portal of Contact Center that will push the

frontiers of our interactive experience with our customers. Our Mission is to bring

the assurance of energy to our customers, with world-class quality and

commitment for satisfaction as we continue in our quest for excellence.

Peshawar Electric Supply Co.

Peshawar Electric Supply Company (PESCO), located in Peshawar

provides service of power distribution to over 2.0 million consumers of all civil

districts of N.W.F.P, Pakistan. At PESCO networks, we own and maintain

N.W.F.P’s electricity distribution system via 132, 66, 33KV sub-transmission

lines, sub-stations and 11KV & 440V low tension lines with distribution

transformers that deliver electricity to your home or business.

Quetta Electric Supply Co.

QESCO is operating as a Power Distribution Company and will act as

Private Organization on switching over from Public to Private Sector. QESCO is

dealing with Power Supply System in the whole Balochistan less District

Lasbela. It is smallest in terms of consumers but largest as it covers 43 % area

of Pakistan. The peak demand at the moment is 1177 MW evaluating measures

and anticipated to be 1659 MW by the year 2015 with 8 % uniform annual

growth. QESCO system is under stress due to huge number of Agri: Consumers

contributing about 70-80 % of Power Demand. Low voltage profile prevails due

to long distances from Generating Sources, besides availability of Single 220 KV

sources from Guddu. The safe drawl of power is 721 MW. To have additional





source another 2x220 KV Dadu-Khuzdar & DG Khan-Loralai Transmission Lines

stands approved through out source funding at the cost of Rs 5.437 and 5.089

billion respectively. Hopefully, the work completion in totality is expected ending

2011

Karachi Electric Supply Company Ltd.

KESC is one of the city's largest employers: around 17,000 people

currently work for the company. It is also one of the oldest companies in Karachi

and was established in the city even before the creation of Pakistan in 1947.

Incorporated on September 13, 1913, under the Indian Companies Act of 1882,

the company was nationalized in 1952 but was re- privatized on November 29,

2005. KESC came under new management in September, 2008; a significant

number of professional managers with experience in running utility and other

large companies have joined under this management and will be running it until

the company is turned into a best practice utility.

At present, KESC is the only vertically integrated power utility in Pakistan

and manages the generation, transmission and distribution of electricity. KESC

covers a vast area of 6,000 square kilometers and supplies electricity to all the

industrial, commercial, agricultural and residential areas that fall under its

network

Karachi Electric Supply Company Ltd.

KESC is one of the city's largest employers: around 17,000 people

currently work for the company. It is also one of the oldest companies in Karachi

and was established in the city even before the creation of Pakistan in 1947.

Incorporated on September 13, 1913, under the Indian Companies Act of 1882,

the company was nationalized in 1952 but was re- privatized on November 29,

2005. KESC came under new management in September, 2008; a significant

number of professional managers with experience in running utility and other

large companies have joined under this management and will be running it until

the company is turned into a best practice utility.





At present, KESC is the only vertically integrated power utility in Pakistan

and manages people to the right jobs" and enhancing their levels of motivation /

morale / job satisfaction through different departments.





DEPARTMENTS

Operation Directorate

The basic tasks performed by the operation directorate are:

Operation and maintenance of distribution system

Operation and maintenance of sub-transmission and grid systems

The Directorate consists of the following departments: -

O&M (T&Gs) Department The Operation & Maintenance (Transmission and Grid Stations) - O&M

(T&Gs)

department headed by a Senior Manager is responsible for the electrical network

at

132KV and 66KV and has under its purview 67 132KV and 15 66KV Grid

Stations and

1515 KMs of 132KV and 628 KMs of 66KV lines. The department carries out its

functions in the field through the Superintending Engineer (Grid System

Operation) - SE





(GSO) by issuing guidelines, schedules and authorization for the preventive and

emergency maintenance programs, and carries out frequent inspection to ensure

compliance by the field organization.

O&M (Dist) Department The Operation & Maintenance (Distribution) - O&M (Dist) department

headed by a Senior Manager, is responsible for the electrical system at 11KV

and 400V. Policy guidelines, schedules and authorization for maintenance of

feeders are issued to the 6 operating circles in the field headed by then

Superintending Engineers and frequent inspections are carried out to ensure

compliance. The department also has a civil engineering division headed by an

Executive Engineer for the design, construction and maintenance of all the

buildings of MEPCO.

Technical Services Department

The Technical Services Department carries out the testing, calibration and

repair of all the energy meters, and also the installation of the maximum demand

meters. It is headed by 02 Managers who have 03 distribution circles each as

their areas of responsibility.

PDC Department

The Power Distribution Control Department headed by an Executive

Engineer has been set up to monitor the entire electrical network of MEPCO

round the clock. Information about the supply breakdowns, major equipment

damages and occurrences of importance are received through telephone and fax

from the field and are transmitted to the highest level in MEPCO and WAPDA,

and then instructions are passed for situation management.

Safety Department

The Safety Department headed by a Deputy Manager ensures that the

system is operated in compliance with the statutory provisions regarding safety

for the employees and the public. Frequent inspections are carried out and





safety parades by the employees are held to ensure that working practices are

safe and the employees are adequately trained in safety measures. Every

accident occurring to an employee, member of public or animal is investigated

meticulously and lessons learnt and disseminated.

In order to update the assets information and to monitor the efficacy of its

operation, maintenance and safety policies and programs related to the entire

MEPCO electrical network, the following returns are prepared and issued.

Technical Services and Operations

M&T organization is one of the most important departments in MEPCO,

the company revenue depends on accurate functioning of its cash box i.e.,

energy meter, M&T deals with checking installation, testing and re-calibration of

energy meters the importance of M&T can’t be over emphasized. It also attends

any fault in metering equipment- involving panels, MDI meter, C.Ts, P.Ts or

cable and this ensures continuity of supply to consumer using electricity in bulk.

The low losses in B-2 & B-3 units of MEPCO speak volumes for efficiency of

M&T department. It has dedicated and devoted staff and ready for duty at call at

any time. This department also enables operation wing to reutilize defective T&P

meters and thus saving a large amount of revenue by repairing these meters.

Material Management Directorate

Pre qualification and Registration of firms for supply of distribution / GSO

Material

Procurement of material through tender

Disposal of unserviceable material / vehicles through tender and auction

Formation of rate contract for regular supply of material with firms.

Arrangement of all kinds of material including T&P items from other DISCOs as

per requirement of field formations.





Maintaining of minimum and maximum level of material in stores

Issuance of material as per requirements of field formation

(A) Private New Connection & Extension of Load

(B) Government Connection

(C) Housing Schemes

(D) Others Works

Training Centers

MEPCO also provides refresher courses to the employees for working in

computer based and modern systems. The newly induced employees are

enrolled for newly induction program and they are trained for MEPCO

environment and systems. Since the situation of Law and Order is very spoil in

our county therefore security staff of the MEPCO is also provided refresher

courses to familiar with advance security systems and arms. For this purpose a

Training center is established in 220KV Grid Station Bund Road Lahore. All the

newly induced officials and officers are required to pass their newly induction

courses. The departmental promotion exams and training is also performed in

this center.

Customer Services Directorate

The tasks assigned to Customer Services Directorate in MEPCO are:

Implementation of Commercial Policies

Monitoring and management of recovery process

Monitoring of line losses and preparation of accurate line losses

statements

Settling consumer disputes involving technical, commercial and tariff

issues

Processing and monitoring policies and procedures for Customer

Services





Inspection of field formations regarding Commercial and Customer

Services matters

Sanction, contract management and monitoring of specialized electricity

consumptions such as Cable TV networks and neon signs etc.

Processing/sanctioning of various incentives for customers and

employees introduced from time to time.

Effective marketing of electricity

Tariff structuring and management of other tariff related matters

Compilation of statistical data and management returns

Co-ordination with Manager MIS for regulating effective billing program

Surveillance and detection of electricity theft

Taking effective measures for prevention of electricity theft





HRM DEPARTMENT

MULTAN ELECTRIC POWER COMPANY (MEPCO)

MEPCO is one of the biggest Distribution Company of WAPDA. Its area of

operation is from Sahiwal to Sadiqabad, Bahawalnager to Bahawalpur and

Tounsa Sharif to Rajanpur and bordering with Sind, Balochistan and Khyber-

Pakhtunkhwa. MEPCO is the largest organization in the region; having 17193

employees. The Charter of MEPCO is to provide the reliability, quality and safety

of electric power supply to the consumers in its Jurisdiction. MEPCO is

envisaged for the creation of the resources and engineering plans for additions,

renovation and augmentation of the distribution system in order to achieve

charter. MEPCO is putting efforts to make it a viable and progressive utility to

take care of consumer's power demand.

History of MEPCO





Under the WAPDA act 1958, WAPDA created eight “Area Electricity

Board” in all four provinces to distribute electricity. The distribution in Southern

Punjab including Bahawalpur, D.G.Khan and Multan Divisions were entrusted to

newly created Area Electricity Board Multan. The company which was supplying

power to the Multan area was known as MESCO. Defunct MESCO was taken

over by WAPDA in the year 1981. All these Area Boards were under General

Manager (Op) Distribution WAPDA Lahore. During 90s when new corporate

culture was emerging in Pakistan and public sector companies were being

privatized, WAPDA also envisaged the restructuring of its Power Wing.

Accordingly 12 companies were established and got registered from SECP. Out

of these; 08 companies were Distribution companies, 3 were Generation and 1

Transmission and Dispatch Company. MEPCO was established w.e.f 01-07-

1998 replacing the old Area Electricity Board Multan. At present MEPCO is

providing electricity to 13 districts of Southern Punjab. It has more than 3332147

Domestic, 380661 Commercial, 40472 Industrial, 59584 Tube Well and 1685

other consumers.

EXISTING STRENGTH of

EmployeesUp to April 2010

S.# Category Distribution GSO Total

01 Officers Gr-18 & above 151 10 161

02 Assist: Managers 256 31 287

03 Assist: Managers (C.S) 25 0 25

04 LS-I 479 23 502

05 LS-II 408 5 413

06 SSO-I 1 109 110





07 SSO-II 1 218 219

08 Foreman 3 21 24

09 LFM-I (Foreman) 35 0 35

10 LFM-II (Foreman) 37 1 38

11 Commercial Assistant 637 0 637

12 LM-I (Lineman) 1559 63 1622

13 LM-II (Lineman) 1497 83 1580

14 ALM (Asstt: Lineman) 4154 53 4207

15 Meter Reader 1637 0 1637

16 Bill Distributor 440 0 440

17 Chowkidar / NQ 850 40 890

18 Clerks all types 957 24 981

19 Other Staff 2016 1369 3385

Grand Total 15143 2050 17193





ORGANOGRAM

HR Directorate MEPCO



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HR DEPARTMENT

Under direction from the Chairman and Chief Executive Officer of the

Company, HR &

Admn Director shall be responsible for the recruitment and placement of the

"right people to the right jobs" and enhancing their levels of motivation / morale /

job satisfaction through:

a) The provision of the necessary support systems and structures such as an

attractive compensation package, a fair and objective system for promotion and

career progression, training and development inputs to keep people in pace with

the changing demands of their jobs, etc.

b) The creation of a working environment and administrative support systems

that will promote employee performance and productivity.

More specifically the Human Resources Director shall perform following

functions:-

a) A human resource philosophy, which shall govern the company’s

actions with respect to human resources management.

b) Prepare a Human Resource Plan to support the short and medium-

term goals of the company.

c) Develop the policies, guidelines and procedures for the following

human resources

management concerns: -

Manpower planning / budgeting

Recruitment and Selection

Appointment, deployment, re-deployment / transfers

Compensation and benefits administration

Career planning and promotion

Performance management





Incentives administration

Training and development

Grant of Move over

Grant of permission for higher education

Consider and approve transfer requests.

Sanction leave.

Duties / Functions of Manager (HR)

1. Recruitment

Manpower Planning

Recruitment and Selection

Appointment and Development

Creation of Posts and Offices

2. Promotions

Preparation of Seniority Lists / Fixation of Seniority

Career Planning and Promotions

Performance Management

Training and Development

Grant of Selection Scales

Move Over

Preparation and Circulation of Seniority Lists

Maintenance of Service Books

Pension Welfare Fund and GLI Cases

Over Time / Off-Days Wages Cases

3. Transfer / Posting

Transfer and Posting of Staff and Officer

Vacancies Statement and Manpower Data

Incumbency Statement / Register





To Maintain List of Officer Stay Wise

4. Retirement Retirement and Resignation of Service

Preparation of Pension Papers

Actively supervise and Coordinate the Working of All Administration Staff

Posted under

JOB ANALYSIS

“Job Analysis is a process to identify and determine in detail the particular job

duties and requirements and the relative importance of these duties for a given

job. Job Analysis is a process where judgments are made about data collected

on a job.”

The Job; not the person An important concept of Job Analysis is that the

analysis is conducted of the Job, not the person. While Job Analysis data may

be collected from incumbents through interviews or questionnaires, the product

of the analysis is a description or specifications of the job, not a description of

the person.

Purpose of Job Analysis

The purpose of Job Analysis is to establish and document the 'job

relatedness' of employment procedures such as training, selection,

compensation, and performance appraisal.

Determining Training Needs

Job Analysis can be used in training/"needs assessment" to identify or develop:

training content

assessment tests to measure effectiveness of training

equipment to be used in delivering the training

Methods of training (i.e., small group, computer-based, video,

classroom...)





Compensation

Job Analysis can be used in compensation to identify or determine:

skill levels

compensable job factors

work environment (e.g., hazards; attention; physical effort)

responsibilities (e.g., fiscal; supervisory)

required level of education (indirectly related to salary level)

Selection Procedures

Job Analysis can be used in selection procedures to identify or develop:

job duties that should be included in advertisements of vacant positions;

appropriate salary level for the position to help determine what salary

should be offered to a candidate;

minimum requirements (education and/or experience) for screening

applicants;

interview questions;

selection tests/instruments (e.g., written tests; oral tests; job simulations);

applicant appraisal/evaluation forms;

orientation materials for applicants/new hires

Performance Review

Job Analysis can be used in performance review to identify or develop:

goals and objectives

performance standards

evaluation criteria

length of probationary periods

duties to be evaluated





Methods of Job Analysis

Several methods exist that may be used individually or in combination. These

include:

review of job classification systems

incumbent interviews

supervisor interviews

expert panels

structured questionnaires

task inventories

check lists

open-ended questionnaires

observation

incumbent work logs

A typical method of Job Analysis would be to give the incumbent a simple

questionnaire to identify job duties, responsibilities, equipment used, work

relationships, and work environment. The completed questionnaire would then

be used to assist the Job Analyst who would then conduct an interview of the

incumbent(s). A draft of the identified job duties, responsibilities, equipment,

relationships, and work environment would be reviewed with the supervisor for

accuracy. The Job Analyst would then prepare a job description and/or job

specifications.

The method that you may use in Job Analysis will depend on practical concerns

such as type of job, number of jobs, number of incumbents, and location of jobs.

What Aspects of a Job Are Analyzed?

Job Analysis should collect information on the following areas:

Duties and Tasks The basic unit of a job is the performance of specific

tasks and duties. Information to be collected about these items may





include: frequency, duration, effort, skill, complexity, equipment,

standards, etc.

Environment This may have a significant impact on the physical

requirements to be able to perform a job. The work environment may

include unpleasant conditions such as offensive odors and temperature

extremes. There may also be definite risks to the incumbent such as

noxious fumes, radioactive substances, hostile and aggressive people,

and dangerous explosives.

Tools and Equipment Some duties and tasks are performed using

specific equipment and tools. Equipment may include protective clothing.

These items need to be specified in a Job Analysis.

Relationships Supervision given and received. Relationships with

internal or external people.

Requirements The knowledge, skills, and abilities (KSA's) required to

perform the job. While an incumbent may have higher KSA's than those

required for the job, a Job Analysis typically only states the minimum

requirements to perform the job

Importance of Job Analysis

Job analysis helps in analyzing the resources and establishing the

strategies to accomplish the business goals and strategic objectives. Effectively

developed, employee job descriptions are communication tools that are

significant in an organization's success.

The main purpose of conducting job analysis is to prepare job description and

job specification which helps to hire right quality of workforce.

Job Analysis can be used in training to identify or develop, training content, and

assessment tests to measure effectiveness of training, equipment to be used in

delivering the training and methods of training.

Job Analysis can be used in compensation to identify or determine: skill levels,





compensable job factors, work environment, responsibilities and required level of

education.

Job Analysis can be used in selection procedures to identify or develop

job duties that should be included in advertisements of vacant positions,

appropriate salary level for the position to help determine what salary should be

offered to a candidate, minimum requirements for screening applicants, interview

questions, selection tests/instruments (e.g., written tests; oral tests; job

simulations), applicant appraisal forms and orientation materials for new hires

Job Analysis can be used in performance review to identify or develop goals and

objectives, performance standards, evaluation criteria, length of probationary

periods, and duties to be evaluated.

Conclusion and Recommendations

The Manager HR is a very important position in MEPCO. The position

holder has to perform all the HR functions including recruitment, training,

orientation, posting transfer, promotions, career planning, performance

appraisal, disciplinary actions and general services.

With all these responsibilities, the manager HR has also the charge of

manager administration and Sports committee. In absence of HR Director, the

manager HR has to take care of that position too. This whole thing may create a

mess.





EMPLOYEES BENEFIT PROGRAMMES

Medical

In order to provide medical services to all the WAPDA employees and

their families WAPDA has set up an elaborate network of 14 hospitals land 39

dispensaries located at different stations and cities in the country in addition to

WAPDA central hospital at Lahore that is the headquarters of the organization.

WAPDA hospital complex provides comprehensive medical care and treatment,

both for in-door and out-door patients, with specialized attention and treatment in

almost all- medical disciplines. The smaller medical units look after the

requirement at various WAPDA projects and other towns where WAPDA officers

have large concentration. All WAPDA hospitals and dispensaries attend to over

1.60 million patients during report year in their out-door departments while their

annual emergency and casualties attendance exceeds 0.101 million. Besides the

medical services include admission for in-door treatment to over 19,498 patients

during report both in WAPDA and non-Wapda hospitals. Over 40526 surgical

operations are performed in WAPDA hospitals in additions to specialized

treatment for cardiac disease and other serious and other serious surgical

medical cases.

Education

In order to promote and maintain education in various Wapda colonies

and projects, WAPDA has set up 45 educational institutions which provide

education not only to children of employees stationed in the respective areas but

also to the adjacent non- WAPDA population. These institutions have performed

exceedingly well with some remarkable results.

Pension





WAPDA employees are entitled to full pension on reaching the age of

superannuation subject to completing their minimum required service. In

financial year 2000-01, as many as 7,875 pension cases were processed

involving payment of Rs. 2210.242 million.

Housing

In order to help WAPDA employees build their own houses a number of

cooperative housing societies have been set up in various cities which purchase

land and develop residential plots for allotment to WAPDA employees. The

societies at Lahore and Gujranwala have been completed while work on

societies at Sheikhupura, Faisalabad, Peshawar, Quetta and other towns is in

progress.

Insurance

WAPDA provides Group life insurance to all of its employees and

arranges payment of sizeable insurance amounts to the dependents of WAPDA

employees who expire during service. During 2000-01 over Rs. 90 million were

paid to the families of 758decreased employees.

Training

WAPDA is a second largest organization in Pakistan. To maintain tempo

of work in such a large organization, it is imperative to have standing

arrangements for management and technical training of the officers and staff.

Training activities are conducted in WAPDA to impart basic and advance

knowledge to all officers and staff during different stages of their career. A

number of training institutes are functioning at various places.

WAPDA Staff College, Islamabad.

WAPDA Engineering Academy, Faisalabad





Regional Training Centers (RTCs) one each in Distribution Companies.

Technical Services Group, Lahore with Training Centre at Terbela.Gatti

(Faisalabad) and Kot Lakhpat Lahore

Hydel Training Centre Mangia

During the year 2006-07, the existing training centers imparted training to

15,235 WAPDA personnel of which 1,359 were officers (Grade 17 to 20) and the

rest comprised supervisory staff of different lower grades. Besides, 185

participants were trained from Government/ Semi Government Departments,

Autonomous bodies and various Industries and Private Organizations









SWOT Analysis

Strengths

One Window service facility at each Sub-Division

Establishment of Computerized Customer Service Centers in each Circle

Central Chief Executive Customer Service Center

Positioning of Field offices near geographic center of their jurisdiction and

co-location of XEN & RO offices

Printing of 12 months billing detail on bill

Printing of SDO's and XEN’s telephone numbers on the bill

Well defined and uniform policy for detection bills.

Enhanced allocation for Development and Maintenance.

More branches of scheduled banks and post offices authorized to collect

bills

Establishment of Model Sub-Divisions

Restructuring of Stores to ensure prompt availability.





Establishment of Marketing Cell and Task Force at MEPCO HQ to

facilitate industrial/commercial consumers

The MEPCO top management is the combination of both experience and

young energetic professionals which are providing to be the real strength

of MEPCO.

MEPCO website provides every information about MEPCO to the

customers and investors.

MEPCO has equipped with the latest technology.

MEPCO has good relation with different departments.

The MEPCO employees are locally so, the turnover rate is low.

The MEPCO has efficient internal audit department, which keep check

and balance.

The MEPCO has experienced of strategic apex and managerial skilled

staff.

Full support from Federal Government.

Weakness

Large time required for processing any project/job

Communication system between employees is not sufficient

Customer services centers required well trained and loyal staff

Lake of loyalty, consistency and regulatory in the staff

People has less trust over company

Customer’s guideness is not sufficient

Customer’s complaint system is very old and execution on the complaint

is very fatigue.

Customers and employees relation is very poor.

The administrative cost of the company is very high due to which the

profitability of the company decreases.

There is still improvement of technology in the MEPCO like in computers.

The customer services are not up to mark they have to improve the

customer services to satisfy the customers.

The divisions are not well furnished they have the need to improve them.





Telecom and Media revolution.

Dependency on suppliers of power generation equipment.

Opportunities

Corporatization and commercialization goals as per plan.

Establishment of mobile customer services center at each circle.

Distribution system rehabilitation under System Augmentation Program

(SAP) for reduction in energy losses.

Timely execution of development works and LT/HT Proposals under SAP.

New Grid Stations and augmentation/extension of existing Grid Stations

and

Transmission Lines

Establishment of Computer Billing Centers.

Conversion of petrol vehicles to CNG.

Purchase of new vehicles for field formation.

The MEPCO is situated in the region where the customers are large in

quantity and other necessary related product is easily available in the

market.

There is no competitor in the local market, there is a big opportunity to get

more share.

Buyers of MEPCO services are easily available in the local market.

The extension plan of divisions by the MEPCO is very good to capture

the market.

The MEPCO has maintained better relationship in the market which helps

the MEPCO to increase the customers.

The strategies of MEPCO are very strong which help them to get

advantages over the competitors.

Research and development in power generation equipment.

Natural resources to increase water resources and cheaper power.





There are rapid changes in technology of power generation and to coup it

ministry will have to be planning for the future plans keeping in mind the

changes.

New power projects have the bargaining power for higher prices keeping

in view the high demand and supply gap in power sector.

Threats

Since MEPCO is a public organization, therefore political environments

are

Decreasing the efficiency of the company.

Some other competitors like GEPCO have their own power

Generation system; therefore MEPCO is dependent on those companies.

In future it is expected that the market value of the MEPCO will be

decreased.

Politics in the employees and labor unions are very awful for company.

Government’s pitiable projects also spoiling the publicity of the MEPCO

The overall performance of the MEPCO also decreasing.

One major threat to the MEPCO is increasing number of customers day

by day.

Due to fluctuation occur in the supply is permanent threat to the MEPCO.

There is always a threat the government may impose some duties on the

MEPCO.

Another threat to the MEPCO is change in day by day technology.

Withdrawal of support from suppliers.

Curtailment of budget.

Obsolescence of strategic equipment.

There is not a long list of suppliers in power sector and the suppliers enjoy

monopoly to some extent and they can change higher and delay supplies

as there is long waiting list for equipment supplies.





Porter’s Five Forces Analysis

The porters five forces comprises on the following factors

Supplier’s power

Threats of Substitute

Buyers Power and

Barriers to entry.

But in the case of MEPCO the competitors are limited to provide their

services in the defined areas of the country. They cannot provide their services

beyond the limitations. So the MEPCO is responsible for providing the services

in there relevant areas therefore no other substitute or there is no any new

company, which can provide electric supply.









Political Factors

The political situation of Pakistan is not satisfactory. Due to the rapid

change in the Government every government sets its own new trade policies.

MEPCO is under PEPCO/WAPDA which is a public sector organization and is

controlled by the Ministry of Water and Electricity of Pakistan. Raja Pervez

Ashraf is Federal Minister of this ministry. As WAPDA is fully operated by the

Government. Due to this political interference in WAPDA has increased and the

political persons and policies directly affect the WAPDA which is not only harmful

for the WAPDA but causes inefficiency and mismanagement. Employees are

hired on political basis, due to this reason inefficient work force is hired which

causes corruption and mismanagement. Due to number of external political

factors power-generation is somewhat restricted. In mid-2000, Pakistan's

government stated that it would permit a natural gas pipeline linking Iran's

massive reserves to rival India across Pakistani territory. Pakistan would earn

transit fees for Iranian gas supplied to India and also would be able to purchase

some gas from the pipeline when and if its own demand was sufficient. While

Iran and Pakistan have shown great interest in the project, India has been

reluctant to move forward as long as political and military tensions with Pakistan

over Kashmir persist. The recent escalation of tensions between the two

countries has made any movement on the project even more unlikely, though a

feasibility study is still underway.

Govt. should apply sustainable policies for continues and sustained

growth of WAPDA.

Economic situation:

The economic condition of Pakistan can also affect the foreign investors

increasing inflation rate make the cost of production high and thus reduce the

profit margin.





Investment activity in the country has already been slowed down and

further raise in the power tariff would add to the problem. Overall economic

activity in the country would remain sluggish if the investment remains blocked.

With the industrial power rates already too high, Pakistan was unable to

compete other regional countries in the international export market. "Target of

$10 billion export target is hard to achieve with such high power rates".

Industries all over the world get power on comparatively lower rates, but it was

other way around in Pakistan "Under the TWO regime we have to support the

competitiveness, and in the presence of such exaggerated power rates our

industry is not in a position to compete with other Asian states".

Social situation:

Power tariff in Pakistan are related with the poverty, and raise in the tariff

would automatically push up the poverty. Poor lot in the country was already

cutting down the food intake, and another hike in the power tariff would worsen

this situation in a country where calorie-based poverty is on the rise.

Technological factor:

The energy demand in Pakistan is likely to increase steadily.

Consequently, the current level of dependence on fossil fuel for electricity

production will come under severe strain because of the high depletion rate of

the fuel. Currently over 70 percent of the total electricity generation in the country

is from fossil fuels, as shown in Table 1 below for the year 2000-2001. In the

year 2000-2001 alone, the total fossil fuel consumption in electricity generation

amounted to 11.94 million tons of oil equivalent (TOE).

The fossil fuel resources, however, are not expected to last for many

years. In fact at the current rate of use of oil and gas for electricity generation,

the existing oil reserves, if put to produce electricity only, can last for a little over

six years only, and the gas reserves for about 75 years. According to some

estimates, a large hydroelectric potential—to the tune of around 30 gigawatts—





exists, which is likely to form the backbone of future electricity generation. But

there are issues— environmental as well as political—that makes large-scale

dams controversial. The mini- and micro-hydel plants, besides being too far

removed from the national grid, add up to a small net generation, serving only

some local communities. Even with a greater focus on microhydel plants, the

benefit will remain confined mainly to the northern mountainous areas.

Among the various renewable energy options, wind and solar energy

stand out for a larger and possibly grid-scale potential. Wind energy potential is

currently being charted out by a state agency and in view of the sharp drop in

installation costs, may help attract private investment in power generation. The

potential is however likely to remain significant only in the coastal areas, mostly

far away from the national electricity grid, and perhaps only to the tune of a

couple of gigawatts.

Solar photovoltaic systems are prohibitively expensive in terms of

installation costs. Power from them is also available intermittently—only when

energy from the sun is available. On the other hand, PV systems are free of the

ever-rising costs of input fuel.They also incur much less operation and

maintenance costs and are supposed to have a longer lifetime than, for example,

a fossil fuel power plant. Thus using solar-PV power looks uneconomical in the

short term, but may be profitable in the long term. It is, therefore, interesting to

identify the factors that can make investment in solar PV power generation

acceptable.

There are several technological alternatives for electricity generation.

While the product - electricity supplied to the end consumer- is uniform, different

production techniques do make a difference on the basis of final cost, reliability

of supply and quantity of polluting emissions. There are different primary energy

sources such as thermal, nuclear or renewable energy which make use of

different installations and transformation processes. Investment in technological

processes is generally for the long term and is virtually irreversible.









My Working in MEPCO





During my work in MEPCO Division I was given task, for improvement of

the area electricity distribution system, whether it relates to LT voltage system or

it is HT, that is high tension (11KV) system through installing capacitors in the

system to be improved.

I did that practically on the line whether these are of 415 volts, 11 K volts or it is

132 KV lines.

The permission was granted for that and requested by Dy.Manager (OP)

MEPCO Division Haroonabad to the technical advisor, of PEPCO for MEPCO

Multan and provide me chance for conveying my views and experience to the

Dy.Manager(OP) MEPCO Davison Haroonabad and other engineers.

The company has purchased 132 KV, 11KV and 415 KV capacitors to

reduce I2R losses and three sets of each bank was drawn by the concerned 11

KV feeder incharge (Line Superintendent) and was allowed for experiment use

by me in coordination with and supervision of Dy.Manager (OP) Haroonabad.

The capacitors are basically two metal plates with opposite charges

(+Q, -Q) with a dielectric in between so that current cannot pass across and

hence voltage only stored.

It means, improvement of system by installing capacitors of rated voltages

results in increasing voltage at a long length already existing electricity lines.

For that, ultimately line losses are to be reduced technically.

Line Losses = I2R

Where I = Current

And R = Resistance of Conductor

R = Resistance depends on the length of the conductor and is directly

proportionate to the electricity line length and inversely proportionate to the area

across section of the conductor.

That is:

R α L

And





R α 1/A

Combining these to relations we have formula

R α L/A

Or

R = α L/A

Where α = constant of proportionality resistivity

And L= Length of Conductor

A = Area across section of conductor.

In simple words, it means:

More length, more resistance

More thick, the conductor, the less resistance will be there and vice versa.

So I choose site for 11KV feeder of City Haroonabad after calculations as use

capacitors in circuit at different locations and I did that through provided line staff

by the Dy.Manager (OP) Haroonabad.

The sketch for the 11 KV feeders where I installed capacitors is shown below.

132 KV 132/11 KV I3 I4 I5 I6

I1 I2

C1 C2 C3

C1, C2, and C3 are three capacitors, I installed for improving the system. I

did that after getting shut down approved for the said feeder by concerned line

superintendent from the concerned Grid Station as it was necessary for the

safety measures.

Before shut down and installing capacitors, I have noted the running current at

different locations as follows:

I1 = 87.5 amperes

I3 = 89.02 amperes

I5 = 86.54 amperes

These readings were taken from amperes meters at panel of the Grid Station.





After, installing capacitors, I cancelled the shut own of grid and noted the current

amperes again after the capacitors accordingly and found as follows.

I2 = 98.52amperes

I4 = 107.43 amperes

I6 = 102.52 amperes

This clearly shown by comparing above six values of currents those current

values (due to voltage improvement) after the capacitors have increased as:

I2 > I1

I4 > I3

I6 >I5

So it was an experiment and was successfully appreciated by the technical

officers of the office of the Dy.Manager (OP) Haroonabad.

So system of MEPCO –WAPDA, HT, and LT lines may be enhanced and hence

improved by installing capacitors on every lengthy feeder lines, particularly at

villages feeding lines and also at overloaded lines.

The work was appreciated by the Manager (OP) MEPCO Circle and suggested

to the higher ups for purchasing of high voltage capacitors, so that, in this way

the voltage problem at village areas and load areas may be improved. This can

also have an impact on revenue generation of the MEPCO.





Conclusion





I got a lot of experience in MEPCO. During my working I come to know that the

different units are working under one umbrella. I have noticed that they are

getting the benefits by minimizing different costs which earlier they were paying

due to lack of technology of computer.

The MEPCO has latest technology for its services and they are serving the

local market very well. MEPCO has open door policy for all tackle all problems

upfront Merit, Justice, Fair play be the hallmark Transparency in all fields

Accountability of everyone. The Multan Electric Supply Co. is a big organization.

It provides electricity to the consumers. It is performing his job very well but

certain improvements and developments are required. This organization has

vertical management system. The top-level management has ample potential to

make this company as an excellent company. The middle level and bottom level

management is also very hard working, punctual and geniuses. But unfortunately

the provision of equipments for maintenance purposes, the government’s lengthy

planes, and inexperienced customer services department is spoiling the image of

the company. The demand of electricity of the consumers must be fulfilled at top

priority. Necessary actions should be taken against the span between the

demand and supply. The response of the employees on the failure of the supply

must be enhanced. Following conclusions are described here:

Increase in Raw material

Slow speed of implementation must be eliminated

Make exact estimate of the demand

Reduce the political factors in MEPCO’s projects and system

augmentations.

Regarding De-Marketing, WAPDA or MEPCO is going without planning, as being

monopoly of WAPDA; it should emphasis on energy saving measures in different

ways like:

Reducing technical losses

Reducing non-technical losses like reduction in theft of energy by different

tariff consumers.





In this way, the Extra revenue generated may be used on different WAPDA

Generation Projects, so that energy conservation may use for extra consumers

at villages where electricity in not still provided.

Similarly electricity or energy may be saved for use in industries, by giving

awareness to domestic consumes for saving energy through different ways.

The progress of different companies of WAPDA like MEPCO must be

compared with another company with good results regarding recovery

and line losses, inspite of giving targets to one company itself.

As no any competitor of WAPDA is there, so should be emphasis on

uninterrupted power supply to all kind of consumers at reasonable prices

per KWH. This can be done by:

o Production of electricity by gas and fuel.

o Constructing naturally designed hydel dams like Kala Bagh Dam.

o Small hydel dams must be constructed and in this way, Vision

2025 plan of WAPDA must be taken in consideration to fulfill future

power needs.

Suggestions





The following are some suggestions about the MEPCO:-

Management should try create more understanding between different

department is to increase their productivity.

The top management should give the authority and flexibility to every

manager to make decisions according to the situation at any time and in

the absence of the top manager.

A proper training should be given to the employees and workers to

enhance their skills to increase their productivity and utility of the

MEPCO.

All the duties and responsibilities of the employees and the workers

should be clearly defined.

The computer technology should also be used in decision making as

well as in storing and feeding the data.

There should be decentralization in decision making.

The management should recruit right person for right job.

The management should hire multi skilled workers to get economy of

scales.

The employees must be well trained for customer services issues.

The extra equipment for maintenance and complaint attendance must

be provided to the staff.

The communication gap between senior management and lower

technical, maintenance staff must be improved.

The organizational hierarchy inside the organization must be reduced.

The application processing system must be improved. For complaints

and other customer related tasks, online computerized system should

be arranged. The trust of the customers must be retained.

The DISCOS should purchase all rating capacitors 11 KV, 132 KV and

415 KV for improving voltage of the lines.

Technical assistance should be given to the line staff regarding power

factor improvement through capacitors.





For new connection applicants of industries, a condition for installing

capacitors at factories must be imposed on industrialists to avoid voltage

drop due to heavy load.

A penalty should be imposed on industrialists who are not using

capacitors.





FINANCIAL REVIEW OF MEPCO

Fin

ancial Overview FINANCIAL OVERVIEW OF MEPCO

FINANCIAL RESULTS DURING 2008-2009Revenue (Rs. in Million)Sale of Electricity 62,745.023Rental & Service Income 182.537Amortization of Deferred Credit 1,009.089Other Income 1,592.379Total Revenue 65,529.028





EXPENSESCost of Electricity 61,886.892Operating Expenses (incl depreciation) 6,637.902Financial Charges 304.739Tax -Total Expenses 68,829.533 Loss for the year (3,300.505)

FINANCIAL POSITION AS ON 30.06.2009ASSETS (Rs. in Million)Tangible Fixed Assets 39,704.222Long Term Advances / deposits 23.281Current Assts 26,123.094Total Assets 65,850.597 Equities & Liabilities Share Capital & Reserves 4,779.078Long Term liabilities 16,220.889Current Liabilities 44,850.630Total Expenses 65,850.597

FINANCIAL REVIEW OF WAPDA

WAPDA Power Wing (Hydroelectric) is operating under the generation

license granted by the power regulator ‘NEPRA’, for operation, maintenance and

development of hydel power resources in Pakistan. The installed capacity of

existing hydel power plants in operation is 6,444 MW. Major hydro plants include

Tarbela (3,478 MW), Ghazi Barotha (1,450 MW), Mangla (1,000 MW) and

Warsak (243 MW).





Capacity

During the period under review, WAPDA Power Wing (Hydroelectric) has

made available its full capacity of 6,444 MW, with water outflow limitations.

Operational Performance

The Net Electrical Output (NEO) for the year stood at 27,363 MKWh,

decrease by 859 MKWh over the same period last year. This decrease in energy

is due to reduced water indents during the year 2008-09 particularly from

Tarbela power station.

Financial Performance

Net profit of WAPDA for the year under review stood at Rs.12,521 million,

which is less than previous year figure of Rs.12,615 million. Sales revenue

during the period comes to Rs.29013 million consisting variable charge of Rs.8

447 million and fixed charge of Rs.20,566 million as per NEPRA approved tariff.

Despite of decrease in net electrical output, sales revenue has increased by

Rs.546 million from the previous year’s figure of Rs.28,467 million due to the fact

that new tariff was notified in September 2007 and was applied in last three

quarters of the FY 2007-08 only, whereas, in FY 2008-09 new tariff was applied

on full year.

Operation & Maintenance expense stood at Rs.3,011 million, which has

increased by Rs.482 million from the previous year figure of Rs. 2,760 million.

Employees cost during the period was Rs.2,136 million, consisting of pay and

allowances Rs.1,125 million and employees’ benefits Rs.1,011 million.

This is Rs.262 million higher than last year because of increase

announced by Government of Pakistan. Admn cost for the year stood Rs.336

million as compared to last year figure of Rs.214 million. Plant repair and

maintenance expenses for the year were Rs.539 million as against Rs.242

million of last year. Depreciation charge for the period worked out to Rs.3,454

million, for the fixed assets valuing Rs.159,378 million (gross value). WAPDA is

paying Rs.6,000 million annually, on account of net hydel profit, to Government

of NWFP as adhoc payment. Water Usage Charge amounting to Rs.695 million





has accrued to Government of Azad Jammu & Kashmir, at the rate of Ps 15 per

unit of electricity generated by Mangla Power Station, as against Rs.685 million

paid last year. The increase in the water usage charge is due to more generation

by Mangla Power Station.

Cash Flow

During the period under report, CPPA has made payment of Rs.20,429

million against billing of Rs.29,013 million. In order to make partial redemption of

foreign currency loan of US $ 125 million, arranged through Standard Chartered

Bank, Rs.2,038 million was borrowed as Bridge Financing from WAPDA

Equipment Protection Organization. For financing of capital expenditure of

Khawar project, external loans of Rs.1,522 million, obtained from Islamic

Development Bank (IDB) were also utilized during the year. Funds received from

CPPA during the year were mainly applied towards payment of net hydel profit to

Government of NWFP and WUC to

Government of Azad Jammu & Kashmir, payment of markup on Running

Finance/Short term loan on WAPDA on behalf of PEPCO entities and operating

costs. Capital Expenditures of Rs.8,174 million WAPDA Hydroelectric for the

year are in line with Water Resources and Hydro Power Development Vision

2025 Programme envisioned by the Federal Government. New loans of

Rs.2,540 million were obtained for financing of Khan Khwar, Allai Khwar, Dubair

Khwar, Jinnah Hydro Power projects which are near to completion.

Assets

Fixed Assets in Operation (gross value) as on June 30, 2009 remained at

Rs.159,378 million, against the last year’s closing balance of Rs.160,241 million.

The value of net fixed assets in operation has also decreased from Rs.127,642

million to Rs.124,104 million. Increase in Capital Work in Progress of Rs.8,174

million is mainly because of capital expenditure on development projects in

progress i.e. Khan Khwar, Allai Khwar, Dubber Khwar and Jinnah hydropower.

Long Term Investment of Rs.186,913 million mainly comprise investment of

Rs.182,859 million (deposit for shares) in ex-





WAPDA Companies, comprising nine DISCOs, four GENCOs, NTDC and

Neelum Jhelum Hydro Power Company. This amount depicts the net worth of

the formations as a result of the transfer of assets and liabilities from WAPDA to

the corporatized entities. The companies will issue shares to WAPDA for this

investment after BTA closing date i.e. June 30, 2008, and accordingly WAPDA

will issue shares in the name of President of Pakistan, reducing the investment

of GoP in Residual WAPDA Power Wing. Store and spares worth Rs.1,442

million relates to hydel power stations and has no significant change in the stock

during the period under report. Trade Receivable from NTDC are Rs.151,371

million. This includes Running Finance facility/short term loan of Rs.48 billion

taken by WAPDA on behalf of PEPCO entities which GoP has agreed to settle

as its own, and this liability is to be transferred to Power Holding Company and

WAPDA’s receivables from CPPA will be reduced accordingly. Moreover, Rs.31

billion will be adjusted against KESC dues. Advances, Deposits and other

receivables amounting to Rs.31,114 million mainly consists of receivable from

the associated companies/formations. Cash and bank balances as at June 30,

2009 was Rs.772 million, which was significantly less than the last year figure

due to suppressed release of funds from CPPA against power sale billing.

Capital & Liabilities

Equity balance of Rs.359,454 million as at June 30, 2009 comprised of

Rs.294,147 million including share capital, revaluation surplus and investment by

Government of Pakistan, whereas, Rs.65,308 million represent accumulated

profit of WAPDA Power wing.

Government of Pakistan extended grants of Rs.8,769 million to Residual

WAPDA Power wing from time to time for financing of various projects as well.

Long Term Loans amounting to Rs.49,196 million were outstanding as on June

30, 2009 as detailed below: Rs.4,766 million has been reported separately as

current maturity under current liabilities including Rs.4,605 million of FRL and

Rs.161 million of CDL Liabililty under Ijara Financing relates to WAPDA

Hydroelectric development projects and has been increased from Rs.8.0 billion

to Rs.16,000 million, the detail of which is as under:





Short term borrowings contains Rs.47,163 million outstanding short term bank

loans taken on behalf of DISCOs and Bridge Financing Loan. Government of

Pakistan has agreed to transfer the said loan to power holding company during

current financial year.

Short term liabilities Rs.35,476 million include pending Government of

Pakistan Debt Service Liability comprising Rs.20,506 million pertaining to

previous years and Rs.11,606 million pertaining to FY 2008-09, besides 4%

Return on Assets payable to Provinces and other liabilities accrued because of

payment default by NTDC / CPPA against power sale by WAPDA. Creditors

Accrued & other Liabilities of Rs.22,229 million mainly includes due to Corporate

Entities & other formations and Project Clearing accounts.

References and Sources Used

Website of MEPCO/WAPDA

Technical brushers of MEPCO

Personal meetings with different mangers





MEPCO new induction training program booklets

Standard Operating Procedural (SOP) documents

Annual Reports published by MEPCO for FY 2009

Technical data prepared and collected by MEPCO’s library.







Documents

Intrnship report on wapda