WAPDA report

Contents

OrganizationAcknowledgementForewordAn OverviewPerformance at a GlanceWAPDA CharterAuthority Fund

03040809101314

Authority

Water DevelopmentIndus Basin Settlement PlanTarbela DamGhazi Barotha Hydropower Project (GBHP)Chashma Hydel Power StationMangla Dam Raising ProjectDiamer Basha Dam ProjectLand Acquisition & ResettlementTechnical Services DivisionPlanning and DesignCenteral Design Office (Water)Hydro Planning Organization (HPO)Neelum-Jhelum Hydroelectric ProjectWater DivisionsCentralSouthNorthNorthern AreasHub Dam

19222940454751566370879097101101108117117123

Water Wing

Hydel Energy Generation 105

Power Wing

Public Sector Development ProgrammeFinancial ReviewAdministrative SupportWAPDA SportsBalance Sheets

Finance and Administration139143145157164

Organization ChartAuthorityas on June 30, 2011

MD (Admn)

Principal Staff OfficerMuhammad Imtiaz TajwarSecretary WAPDA

Syed Raghib Abbas ShahMember (Water)

Muhammad Qasim KhanMember (Power)

Nazakat Ali ShahActing Member (Finance)

Shakil DurraniChairman

Member FinanceGM (CCC)GM (Finance) PowerChief AuditorDG (Finance) B&CDG (CM) WDG (Insurance)

Member & M.D. (Power)GM (Hydel) Opr.GM (Hydel) Dev.GM (Finance) PowerGM (Training)CE (Coord) PowerCE/Principal (WEA), FaisalabadPrincipal (WSC), Islamabad

Member & M.D. (Water)GM (Coord & Mon) WaterGM (Hydro Planning)GM (Projects) NorthGM (Planning & Dev.)GM (Tarbela)GM (GBHP)GM (M&S)GM (Projects) SouthGM (Central) WaterGM (Technical Services)GM (Diamer Basha Dam)GM (Finance) WaterGM (Land Sett. & Rehab.)GM (CDO) WaterCEO (Neelum Jhelum)Advisor (DBD)Advisor (NWRDP)Advisor (Northern Areas)Consultant (Mega Dams)Advisor (Hydel) Generation

WAPDA, an autonomous body/federal institution,came into existence by virtue of an Act of Parliament1958. The composition of WAPDA consists of oneChairman, 03 Members - Water, Power & Finance &a Secretary. The Govt. of Pakistan has given themandate to WAPDA for utilization of water and powerresources for the development of the country. Inaddition, WAPDA was also assigned to make furtherpolicies for the enhancement of hydel and thermalgeneration, transmission and distribution lines aswell as construction of grid stations. In 2004 WAPDAwas un-bundled into two entities and Power Winghas since been assigned to Pakistan Electric PowerCompany (PEPCO) whereas hydel powerdevelopment and maintenance/running of powerhouses rested with WAPDA.

WAPDA is used to publish every year acomprehensive report on the current and futuredevelopment of water an power (Hydro) resourcesultimately which is to be submitted to the Govt. ofPakistan in order to comply with the Section 21(1) ofWAPDA Act 1958. The detail of all activities, beingundertaken, besides a description of developmentof water and hydropower projects (WAPDA’s Vision2025), executed on behalf of Govt. of Pakistan whichare also elaborated in the subsequent pages. Further,it also includes status of various feasibility studies,Detailed Engineering Design for different Small,Medium and Mega Hydel Projects with generationcapacity of 25000 MW either have been completedor for advance stage of completion.

Pursuant to Directives of the Govt. of Pakistan, WAPDAis undertaking construction of 5 multipurpose storagedams in the country during the next 10 to 12 years.It is matter of pride and pleasure to recognize andappreciate the services, rendered by the officers/staffand the consultants to achieve targeted progress,pertaining to different small and medium dam, as wellas several mega Hydropower Projects in order to fulfillits constitutional mandatory obligations, beingundertaken. The portfolio of Small/Medium Dams hasbeen established for the prosperity and developmentof remote & under developed areas as well as barrenland of Pakistan. In addition, it has also beenappreciated by WAPDA Authority, the collaborativeassistance, provided by various organizations andother agencies of the Provincial Governments andFederal Institutions as well as foreign donor agencies.During the current year, the Members of the Authorityand its management staff will continue to focus onthe following major policy initiatives:

Improvement in Operational EfficiencyWAPDA Hydel Power Stations produced 31,686Million KWh Net Energy during the FY 2010-11 whichis 34.9% of the total Hydel – Thermal Generation Mixof the Power System. The preventive maintenanceof generating units was properly carried out to ensurehigh availability and reliability of cheap hydropower.

WAPDA has also taken in hand Rehabilitation of itsold existing Hydel Power Stations to ensure morereliable and sustainable operation of these cheapsources of power generation. Rehabilitation of 22MW Jabban Hydroelectric Power Station is in progresssince February, 2010 which is expected to becompleted in December, 2013. RehabilitationSchemes of Mangla and Warsak Hydel Power Stationsare also in planning stage Feasibility Study forUpgradation and Refurbishment of Mangla PowerStation has been completed by a Joint Venture ofMWH – NESPAK which envisages Upgradation ofthe total installed capacity of Power Station from 1000MW to 1310 MW for optimum utilization of additionalwater and higher head available after completion ofMangla Dam Raising Project.

Further, a Joint Venture of Consultants M/s RSWI –DCE has been engaged to carry out Feasibility Studyfor Rehabilitation, Upgradation and Modernization ofWarsak Power Station alongwith preparation of DetailDesign and Tender Documents. The assignment willbe completed by December, 2012 after whichimplementation of the Project will be started.

Feasibility Study for Upgradation of Renala HydelPower Station has also been completed whichenvisages to enhance its capacity from 1 MW to 4MW. Similarly, Feasibility Study for Rehabilitation of1.1 MW of Chitral Hydel Power Station is being carriedout which will upgrade its capacity from 1 MW to 5MW. Besides, Special Repair and Maintenance ofTarbela Power Station is also being carried out underFARA / USAID.

Revival of WAPDA as a Development OrganizationIt is indeed gratifying that WAPDA has undertakenVision-2025 Programme comprising a comprehensiveintegrated Water Resources and Hydro PowerDevelopment Programme, which will boost up theeconomy of Pakistan. This has also revived WAPDA’sprimary developmental role as laid down in WAPDA’scharter of duties.

In the first phase of the programme, the development

Annual Report 2010 - 1104 WAPDA

Acknowledgement

Annual Report 2010 - 11 05WAPDA

work was started on three canals, five dams and fourhydropower projects. Construction works on theseprojects are in their advance stages of completion.

Detailed Engineering Design & Tender Documentsof Bunji (7100 MW), Lawi (70 MW), Keyal Khwar (122MW), and Phandar (80 MW) hydropower projects arein progress and nearing completion. Feasibility Studyof Palas Valley (621 MW), Spat Gah (567 MW), ThahKot (2800 MW), Basho (28 MW), Harpo (38 MW) andPatan (2800 MW) is in progress. Design, TenderDocuments & PC-I of Tarbela 4th Extension (1410MW) and Dasu (4320 MW) have been taken up underWorld Bank loan.

The construction of Neelum Jhelum HydropowerProject, Concrete Gravity Dam, (969 MW, storagecapacity Volume 8.0 million Cubic Meter) has beencommenced and excavation of tunnels is in progressin order to speed up the civil work of tunnel. WAPDAhas arranged Tunnel Boring Machine to expedite thecompletion of this project which is envisaged bydiverting the Neelum river water at Nauseri throughtunnels passing under the Jhelum River to a powerhouse at Chatter Kalas to generate 969 MW electricitybefore falling into the Jhelum River. The total annualgeneration is expected to be over five billion electricityunits at a nominal cost of Rs.3.00 per unit. Theconstruction activities on Golen Gol HydropowerProject (106 MW) has started since (2011 Feb.). AllaiKhwar, Khan Khwar, Duber Khwar and JinnahHydropower projects are under implementation, thedevastating flood of 2010 adversely affected theconstruction works on these hydropower projects.

To meet water demands of large Agriculture sectorof Pakistan, WAPDA is working on various WaterSector Projects which includes Raising Mangla Dam(additional 2.88 MAF Storage and 120 MW electricity),Gomal Zam Dam (0.892 MAF live storage and 17.4MW), Satpara Dam (0.053 MAF live storage and 17.3MW) and Kurram Tangi Dam (0.90 MAF live storageand 83.4 MW). The Mirani Dam (0.152 MAF livestorage) is in operation since Nov.2006. SabakzaiDam (0.0147 MAF live storage) is also in operationsince Sept. 2007 and has been successfully handedover to Govt. of Balochistan in June 2010. Civil workson Mangla Dam Raising Project have been completedsince December 2009 while resettlement works arein progress. Irrigation projects of Rainee Canal (Phase-I) & Kachhi Canal (Phase-I) are under implementation.Phase-1 of Greater Thal Canal has been completedand handed over the Punjab Irrigation and PowerDepartment on 30.06.2010.WAPDA is working undermost difficult conditions at Gomal Zam Dam situatedin South Waziristan, a high security zone, but with a

mission to complete this project against all odds asa Public Service to Pakistan.

WAPDA has also taken initiative on drainage projects.Right Bank Outfall Drain (RBOD-I) covering area ofShikarpur, Dadu and Larkana in Sindh Province toprovide outfall facilities to the existing and proposeddrainage project to improve environmental and waterconditions in Manchar and Hamal Lakes and waterfor the rehabilitation of existing drainage system,increasing agriculture production in an area of114,1209 acres. The works include RBOD Indus Link,RBOD Extension upto Miro Khan Zero Point,Rehabilitation of Rato Dero, Miro Khan andShahdadkot and Remodeling of Main Nara ValleyDrain (MNVD) while Right Bank Outfall Drain (RBOD-III) covering the areas of Nasirabad, Jaffarabad Districtsof Balochistan and Jacobabad, Kambar-Shahdadkotat Kambar Districts of Sindh has to provide the direlyneeded effluent disposal facilities for existing andproposed drainage projects. The work would increasecrop production of agricultural land wasted due toponds of water, increase in cropping intensity andenvironment condition will improve over grosscommanded area of 7,09,536 acres.

To meet with the future requirements, WAPDA isworking on studies of various projects; namely AkhoriDam (600 MW & 6.0 MAF live storage) – Munda Dam(740 MW & 0.67 MAF live storage) and ChashmaRight Bank Canal (Lift Cum Gravity).

In addition to this, WAPDA has initiated works onconstruction on 12 small medium/irrigation dams inthe country to help the provinces in introducing themost modern high efficiency irrigation techniques. Inthe first phase (2011-15), 06 small medium/irrigationdams will be constructed and 06 other small damswill be constructed in Phase-II. A MOU has beensigned between Govt. of Pakistan and China EximBank to provide an assistance of $ 700 million forthis sector. These projects are located in all provincesof Pakistan. Balochistan Phase-I. Winder Dam,Noulong Dam, Phase-II Hingol, Guruk, Palas Dam.Sindh Phase-I Nai Gaj and Darwat, KhyberPakhtunkhwa Phase-I, Kurram Tangi, Phase-II TankZam and Darban Zam Dam. Punjab Phase-I Ghabirand Papin. The work on Darawat Dam is in progresswherein work on Ghabbir Dam, Noulong Dam, NaiGaj Dam and Winder Dam will commence soon.

Ground breaking ceremonies of Winder, Darwat andGhabir were graced by the honourable President ofPakistan on January 1,2 and 21 2010 respectively.The feasibility study and detailed engineering designof Diamer Basha Dam have been completed. The


infrastructure constructions work of Diamer BashaDam has been awarded and main work is plannedto be awarded during 2012. The design of KurramTangi Dam has been revised as its gross storagecapacity has been increased. Pre-qualification ofcontractors for construction has been completed andtendering process is started.

WAPDA has signed four projects for seeking CarbonCredits, namely Duber Khwar, Allai Khwar, Golen Goland Jinnah Hydropower Projects respectively whichare already under implementation since these projectsare producing clean & environment friendly energy.These projects will be ranked first in the country tomake efforts for reduction in Global warming, besidessetting an example for others.

In addition to this, special studies/research has beeninitiated to check on Glacial Melting due to Globalwarming and future strategy to store/conserve theadditional water likely to accrue from melting ofGlacier, i.e. construction of large reservoir.

Thar Coal Reserves in Pakistan is one of the Reservoirsthe largest in the world. WAPDA has highlighted theimportance of cheap power generation through coaland in this regard a study was initiated to providewater in Thar Coal area for meeting the developmentalneeds.

WAPDA is also planning to introduce a pilot projecton lining of main canals (Dadu, Rohri and Rice) underflowing condition using Incomat material of Germanyis laying 5 KMs at Upper reach of Rohri Canal. Besidesthis, another initiative for treatment of RBOD, drainageeffluent a treatment plant of 40 Cusec is also beingprocured and installed during 2011. It wasunanimously agreed to make all out efforts for thepollution free - clean Manchar Lake and all optionswould be considered to make it practicable whichincludes

(i) installation of treatment plants both by Govt. ofSindh and WAPDA respectively,

(ii) fresh water supply to Manchar through ARALWAHby Govt. of Sindh,

(iii) Completion of RBOD-II by GOS for the diversionof RBOD-III waters through RBOD-II to ArabianSea.

(iv) The issue of funding to treatment plants and importantly the O&M cost after completion of project.

WAPDA through Ministry of Water and PowerGovernment of Pakistan submitted a PC-I forInstallation of Pilot Treatment Plant along RBOD

System at a cost of Rs.3.353 billion to ECNEC at itsmeeting held on May 26, 2011 has accorded approvalof Project. Five Treatment Plants have been installedon Mancher Lake which provide clean drinking waterto residents thus making Mancher pollution free lake.

WAPDA has actively participated in the StrategicDialogue on Water with US Govt. wherein emphasiswas focused on the introduction of Reform on WaterSector. Besides, USAID has provided specialassistance for the rehabilitation of Tarbela Power HouseUnit 3-4 and construction of Gomal Zam & SatparaDams, respectively. In addition, WAPDA has signedMOU with IWHR China and M/s Three Gorges ChinaCompany for the capacity building & training of WAPDAStaff. 12 Engineers were trained in IWHR China.

WAPDA has also initiated work on Inland WaterwaysTransportation System and PC-II is being preparedfor implementing in the reach of Nowshera (KPK) toDaudkhel (Punjab) with technical assistance of PakArmy. WAPDA is working on the feasibility studies ofseveral projects as mentioned above in the fields ofhydropower and water sector, so that Govt. of Pakistancan have a convenient choice to pick up projects forimplementation depending upon the requirement,finance viability and the time in which the project isrequired to be online. WAPDA is doing studies onthe potential of storing water in underground shellsduring Floods/Hill Torrents.

WAPDA is one of the largest organization creatingand developing remarkable sporting atmospherewithin its units all over the country. WAPDA SportsBoard was established in 1960 for promotion of sportsin WAPDA with ultimate goal to uplift the Nationalsports. It was affiliated with Pakistan OlympicAssociation in 1984. In addition to this, WAPDA hasmade tremendous achievements in Sports Sector bywining 137 Medals (Gold, Bronze and Silver) inNational Games. Besides WAPDA has become thechampion in Football, Culture & other sports. It hasmade worthwhile contribution towards promotion ofalmost all disciplines of sports at the National andInternational level. Salient features of performanceof WAPDA Sports Board, during the Year 2011 arethe following:

National Standing of WAPDA TeamsWAPDA is presently maintaining 36 Men and 20Women Teams which is a rare honour of any institutionat National level. The current National Standing ofWAPDA Teams is as under:-

Participation in International CompetitionsDuring the year players and officials of various sports


disciplines were selected to represent Pakistan duringvarious International Competitions.

WAPDA Endowment Fund for SportsA Scheme named as "WAPDA Endowment Fund forSports" has been launched by WAPDA in 2010. Theprime objective of creation of this Fund is to arrangeregular source of financing to provide sports andeducation facilities to our youth together with anultimate aim to enhance the medal tally of Pakistanin International competitions. In this regard, 73 xyoungsters have been selected / enrolled during theyear 2010. The youngsters enrolled for this schemeand are being paid education and extra diet allowanceof Rs.(2,000 + 3,000) = 5,000/- per month. Everyyoungster has been provided coaching / trainingfacilities nearby his home place. WAPDA Coachesare imparting training to them. This Scheme shall be

a milestone in history of Pakistan Sports – Remarkablecontribution for our youth. Selection of youngsters of2nd Intake is under progress.

WAPDA earnest endeavors are reflective of thecommitment to support the national economy andpoverty alleviation through improved Hydel-ThermalMix of power generation, provision of electricity ataffordable rates and above all perspective planningand timely execution of projects to meet water andpower demands of growing population, agricultureand industry.

(Muhammad Imtiaz Tajwer)Secretary WAPDA


Public Relations Division takes pleasure in presentingthe 53rd issue of Annual Report of the Pakistan Waterand Power Development Authority (WAPDA).

This prestigious document is released to fulfill thestatutory requirements of WAPDA Act 1958.

WAPDA has made credible progress on various waterand hydropower projects in hand during the financialyear 2010-11. The creditable achievements of theAuthority have profound reflection on implicationsfor socio-economic development of the country.

Authenticity and reliability of accounts has been thecorner stone in documenting the annual performanceof the Authority while pen-picturing its achievements.

Keeping in view, the enormous scope and range ofthe activities in the year under review, tables, chartsand illustrations have been incorporated to make thereport more comprehensible.

Every possible effort has been made to produce acomprehensive and a valuable document for thebenefit of the policy-makers, the researchers and allthose associated with the relevant fields. Valuedcomments of the beneficiaries and readers in generalare the best gauge to assess the degree of successin accomplishing the objectives of presenting thisreport.

(Muhammad Abid Rana)Executive Editor

Foreword


An overview of the performance of WAPDA includingits operational and developmental activities duringthe year ending June 30, 2011 is as under:

Water WingThe projects completed by Water Wing under IndusBasin Settlement Plan and those with WAPDA foroperation and maintenance purpose kept functioningsatisfactorily.

Irrigation releases from three reservoirs - Tarbela,Mangla and Chashma - registered constant trend.In aggregate, 13.749 million acre feet of water wasreleased from these reservoirs corresponding toirrigation indents, in the fiscal year 2010-11.

The work initiated in the preceding years for waterresource development gained momentum. Under“the Water Resources and Hydropower DevelopmentProgramme – Vision 2025, civil work on Mangla DamRaising Project has been completed. The first phaseof the Greater Thal Canal Project is completed andhanded over to Irrigation & Power Department, Govt.of Punjab for Operation & Maintenance in December2009. Mirani and Sabakzai dams completed in 2007and 2009 respectively, are in operation. Irrigationsystem of Mirani Dam has been handed over toIrrigation and Power Department, Government ofBalochistan. However, the dam structure is still withWAPDA. Likewise, Sabakzai Dam has also beenhanded over to the Government of Balochistan. Workon Gomal Zam Dam, Satpara Dam, Rainee Canaland Kachhi Canal continued, while construction workon two drainage projects, namely RBOD-I and RBOD-III progressed satisfactorily.

Preparatory works to initiate construction of Diamer-Basha Dam, the largest-ever project in the history ofPakistan, also continued.

In addition to abovementioned projects, WAPDA hasplanned to construct 32 small/medium dams in thecountry. In the first phase 12 small/medium damswil l be constructed and Memorandum ofUnderstanding has been signed with the ChinaEximbank to provide an assistance of US$700 millionfor these projects.

Special studies/researches have been initiated onglobal warning system and to manage additionalwater, due to melting of glaciers.

Power WingOperation and maintenance of the existinghydropower stations was carried out efficiently duringthe year 2010-11. WAPDA hydel power stationsgenerated as many as 31,685 Gwh during the yearunder report.

The implementation work on five hydropower projects,including three high-head hydropower schemes,namely Khan Khwar, Duber Khwar and Allai Khwar,Jinnah Hydropower Project and Neelum-JhelumHydroelectric Power Project remained in progress.In addition, contract for construction of 106 MW GolenGol Hydropower Project was awarded while 4500MW Diamer Basha Dam Project is ready forconstruction. WAPDA also carried out feasibilitystudies and detailed engineering designs of varioushydropower projects with cumulative generationcapacity of more than 20,000 MW including 1100-MW Kohala, 4320-MW Dasu, 7100-MW Bunji and1410 MW Tarbela 4th Extension etc.

Besides planning and constructing new hydropowerprojects, rehabilitation of Jabban Hydropower Stationand Tarabela Power Station has also been undertaken.WAPDA is also planning to take up rehabilitation ofWarsak, Mangla and Renala power houses for theirreliable operation.

WAPDA IN 2010-11

Overview


PERFORMANCE AT A GLANCE 2010 - 11SECTOR SUBJECT 2010 - 2011

(Million Rs.)

9,534.420

26,763.00

36,297.42POWER 6,516

31,685

WATER

Public Sector Development Programme (PSDP)

PSDP + ADP

21,763 + 5,000

TOTAL

Water

Power

Installed Hydel Generating Capacity (MW)

Hydel Generation (MKWH)

7.5174.29

1.942

13.749

Water Releases from Reservoirs (Million Acre Feet)TarbelaManglaChashma

TOTAL

WAPDA Charter

Human Resources

Authority Fund

WAPDA Annual Report 2010 - 11 13THE AUTHORITY

WAPDA CharterThe Pakistan Water and Power DevelopmentAuthority (WAPDA) was established throughan act of parliament in February 1958 forintegrated and rapid development andmaintenance of water and power resourcesof the Country. This includes controlling soilsalinity and water logging to rehabilitate theaffected land in order to strengthen thepredominantly agricultural economy of thecountry.

As per the charter, amended in March 1959to transfer the existing electricity departmentsfrom the federating units to it, WAPDA hasbeen assigned the duties of investigation,planning and execution of projects andschemes for:

l Generation, Transmission and distributionof power,

l Irrigation, water supply and drainage,l Prevention of water logging and

reclamation of saline land,l Flood control andl Inland navigation.

Under the later on developments, vis-à-visthe “Energy Policy 1994”, setting up of thermalpower generation projects was shifted to theprivate sector. Similarly, as a result ofrestructuring of the Power Wing, the utilitypart was corporatised into independentcompanies. This shift from convergence todivergence divergence gave birth to 14 entitiesto operate in different zones. These areNational Transmission and Dispatch Company(NTDC), four thermal power generationcompanies (GENCOs) and nine distributioncompanies (DISCOs). The present status ofthese companies is of corporate public limitedentities under the Umbrella of PEPCO,ultimately to go privatized as planned. Theresidual Power Wing is therefore nowresponsible for major hydro-electric powerprojects and schemes in operation.

Human ResourcesThe Authority comprises of a Chairman andthree members, each heading Water, Powerand Finance wing.

The Members oversee the affairs of theirrespective wings through General Managers

AuthorityWAPDA House - Lahore

WAPDA Annual Report 2010 - 1114 THE AUTHORITY

for the streamlined operations in their respectiveareas.

During past 53 years of its operations, WAPDA hasdeveloped its human resource as a reservoir ofknowledge, competence and expertise throughtraining and experience gained at the accomplishedprojects and remaining associated with diversifieddevelopment activities. These include professionals,specialists, scientists, economists, administrators,accountants and skilled workers for planning, building,managing and operating various projects.

Water WingMember (Water) controls the water wing, which isdivided into North, Central, South and Northern Areaszones. These zones cover, in general, KhyberPakhtunkhwa (KPK), Punjab, Sindh and Balochistanand Northern Areas respectively. The activity of waterwing involves execution of surface and sub-surfacewater development and drainage-Salinity Control andReclamation Projects (SCARPs). Chief Engineersand Project Directors at various levels are responsiblefor effective and timely implementation of Water WingProjects.

Power WingMember (Power) controls the Power Wing, throughGeneral Managers and Chief Engineers in the fieldof hydro-electric power, coordination and WAPDAPower Privatization Organization.

WAPDA has an elaborate setup headed by a GeneralManager for training of its officers and officials atdifferent levels covering all the wings of theorganization.

FinanceMember (Finance) is responsible for the functioningof the departments of Finance, Internal Audit andBudget and Accounts headed by Chief Auditor(Internal Audit) and Director General Finance (B&C).He also exercises administrative control over GeneralManager (Central Contracts Cell), Director General(Taxes) and Director Public Relations.

Managing Director (Admn) is vested with theresponsibility for overall administration and services.

Secretary WAPDA in addition to looking after day-to-day affairs of the Secretariat, prepares minutes ofthe Authority’s meetings, maintains records of itsdecisions and issues its directives and coordinates

among the three Wings besides monitoring andimplementation of Authority’s decisions.

Authority FundThe Authority Fund consists of the following:l Loans and grants obtained from the federal and

provincial governmentsl Sale proceeds of WAPDA Bondsl Loans obtained by the Authority with general

sanctions of the governmentl Foreign aids and loans obtained from the IBRD,

ADB and other international loan giving agencieson such terms and conditions as may beapproved by the government

l Sale of powerl All other sums received by the Authority

Since FY 1974-75, the Federal Government is meetingthe budgetary requirements of acceleratedprogramme of SCARP and, from FY 1976-77, forsmooth execution of the projects, the Governmentof Pakistan also assumed the responsibility of fundingSurface Water Projects.

The annual allocation for Water DevelopmentSchemes comprising Surface Water DevelopmentProjects like Chashma Right Bank Canal Project andPat Feeder Canal Project, Drainage and Reclamationprojects as well as National Drainage Programmeare earmarked in Public Sector DevelopmentProgramme (PSDP) as interest bearing loans andadvances from the Federal Government. The fundsare made available to WAPDA as grant for financingGeneral Investigation Schemes to provide researchbased future planning for exploring the best use ofwater and fight against twin menace of water loggingand salinity.

The Ministry of Water and Power provides funds fromits current expenditure budget, for continuous andrecurring nature research schemes such as MonaReclamation and Experimental Project, Lower IndusManagement (LIM), Hydrology & Research (H & R)and Perspective Planning Organisation (PPO), whileoperation and maintenance of Khanpur and HubDam projects is carried out through interest free loansof Finance Division.

Funds for other schemes belonging to provinces areprovided by the respective governments to WAPDAwhich acts as the executing agency on their behalf.Under an arrangement, approved by the FederalGovernment, Water Development Projects completed

WAPDA Annual Report 2010 - 11 15THE AUTHORITY

by WAPDA, after initial run for one year, are transferredto respective provincial governments for their operationand maintenance. Schemes under National DrainageProgram (NDP) are being executed by respectiveProvincial Irrigation and Drainage Authority (PIDA)except inter provincial schemes or schemes underparticipating agreement with PIDA by WAPDA. Theseschemes will also be maintained by the respectiveprovinces through financing out of their own kitty.The federal government provides Cash DevelopmentLoans (CDL) for drainage projects while grant fundsthrough foreign loans and cash development loansin rupees. However, with effect from July 1, 1988,WAPDA’s Development Programme is earmarkedfor dams (storages) canals and engineering studiesthrough Public Sector Development Program (PSDP).The debt servicing liability in respect of powerschemes is that of WAPDA which is also responsiblefor discharging its debt liability in respect of

expenditure incurred on electrification of SCARPtubewells installed by it. In FY 1987-88, the federalgovernment permitted WAPDA to float WAPDA Bondsfor Public subscription. Profit on all issues is beingpaid to the bond holders regularly.

Further, for various hydroelectric power projects inKPK i.e. Khan Khwar (72 MW), Allai Khwar (121 MW)and Duber Khwar (130 MW); WAPDA requiredconsiderable finances. Since WAPDA’s First SukukIssue proved to be a great success, it was decidedthat another sum of Rs.8.00 Billion be raised throughSukuk. Therefore a company named “WAPDA SecondSukuk Company Limited” was established asWAPDA’s wholly owned subsidiary to act as SpecialPurpose Vehicle (SPV). The company wasincorporated on 4th June 2007. This provided comfortfor raising funds for the completion/development ofKhwar Hydro Electric Projects of WAPDA.