FEDERAL, KP GOVERNMENTS INK MOU TO RESOLVE
Chitral Times Report
Islamabad: A high level meeting chaired by the Finance Minister,
Senator Mohammad Ishaq Dar here on Thursday had in depth
deliberations on issues between the Federal Government and the
Government of Khyber Pakhtunkhwa (KP). The successful discussions
led to signing of an MoU for resolving the decades old issues which
to date had been overlooked by successive governments.
Federal Minister for Water and Power, Khawaja Mohammad Asif was
also present in the meeting. Chief Minister KP, Mr. Pervez Khattak
along with his cabinet colleagues and senior officials represented
KP on the occasion.
The meeting at the outset discussed the matter concerning payment
of net hydel profit (NHP) and net hydel arrears to KP. It was
decided that the uncapped NHP as determined by Nepra would be
notified immediately by the Ministry of Water & Power. Accordingly
a total amount of Rs.70 billion was agreed on account of arrears of
uncapped NHP after reconciliation of mutual claims in the power
sector between the two governments as full and final settlement.
The meeting also decided that WAPDA after seeking concurrence of
CCI through Ministry of Water and Power, would file a tariff
petition for recovery of arrears in four installments, first
installment of Rs. 25 billion in current financial year and Rs.15
billion each in the next three financial years.
The meeting also discussed matters regarding Pehur Hydro Power
Project owned by the KP Government. It was agreed that a Power
Purchase Agreement (PPA) would be signed by CPPA-G latest by 31st
March this year which would incorporate a mechanism for recovery of
Considering the matter regarding allocation of gas for power
generation, it was decided that the federal government would
allocate 100 MMCFD gas to the KP Government for use in power
generation either at its own or through partnership with the
In regard to Chashma Right Bank Uplift Canal project in KP, it was
agreed that the feasibility of the project would be carried out
afresh by the Ministry of Water and Power and Government of KP in
coordination with the Planning and Development Division. Upon
approval the project would be co-financed by the federal and KP
governments with a 65-35 ratio. The KP Government would also bear
the operation &management and recurring costs of the project.
It was also decided in the meeting that the issues of Workers
Welfare Fund (WWF) relating to KP would be duly addressed by the
Federal Secretary, HRD on priority.
Later the Finance Minister Ishaq Dar giving details to media about
the agreement said the successful talks were truly reflective of
the policy of reconciliation followed by the present government led
by Prime Minister Muhammad Nawaz Sharif. He said the issues which
were overlooked by many governments in the past, were finally
resolved by the PML-N Government. He appreciated the active
participation of Federal Minister for Water and Power, Khawaja
Mohammad Asif and the positive contribution by the Chief Minister
KP in resolving the issues.
Chief Minister KP, Pervez Khattak thanked the Federal Government,
especially Finance Minister Dar for the deep interest he had
evinced in addressing the lingering problems.