If you're asking yourself, "Who is the owner of WAPDA?", you're not alone. The question has become more urgent as the process to sell the government-owned company has reached an accelerated stage, involving as many as 12 corporate companies.
However, the transfer of ownership cannot be legally completed until the share head is changed. In this regard, a presidential ordinance is pending and requires this change. Once this is approved, the transfer of ownership can be automatic.
Residual Wapda
The government has decided to transfer 100% of the assets of the Wapda to 12 corporate companies. This transfer will be done through a presidential ordinance. Meanwhile, the World Bank is supporting a $1 billion power sector corporatization and restructuring plan. In return, the government will receive a small portion of the proceeds. The money will be used to fund infrastructure projects. This is the first step in resolving the Residual Wapda.
The Wapda report includes a table showing the irregularities and amounts misappropriated. The report indicates a pattern of bungling. While the report acknowledges that the loss of revenue to lines is still above 25%, it argues that this represents one-fourth of its total revenue. The Wapda should improve its internal control mechanisms to minimize losses. Ultimately, it will benefit all stakeholders.
While it is a relief to see the company finally close the bankruptcy proceedings, there is still plenty of work to do. The PC must issue a comfort letter to investors, while the Wapda cannot sell Kapco's shares on its own. The PC also must address the shortcomings of Wapda's representatives. The PC must address the concerns raised by investors. However, this decision is not final until the shareholders approve it.
The WAPDA has three components: a four-year investment program to make the power system more reliable, so it can attract private investors. A third component, a technical assistance component, will provide financial and environmental capability support to the project. During the 1998 Policy Statement on Power Sector Reform, the concept of the WAPDA as a holding company was discontinued. The WAPDA is now a multi-sector company.
WAPDA's restructuring was a massive undertaking. The Power Wing, which provides electricity to the public, consists of three segments: the Power Wing, which is responsible for transmission and distribution of power; and the Water Wing, which carries out activities related to hydroelectricity. In September 2012, the government approved the restructuring plan and placed the Power Wing under the new organization, Pakistan Electricity Company. The government's initial objectives were not met, and the process of restructuring the WAPDA was a long, difficult process. However, it has produced the required results.
While the project is aimed at improving the management of the water resources in the country, the US Bureau of Reclamation has already completed training for dam safety. It also upgraded telemetry stations to improve public access to water resources. The new telemetry stations will improve the measurement of water flow. There are also a number of other improvements in the process. This means that the project will benefit the local economy as well as the local community.
President of Pakistan
The new government is facing the biggest challenge yet - how to improve the energy sector, especially in Pakistan. There are a number of pending projects that require massive investment. As chairman of WAPDA, Hussain steered all major projects in the country. But the corruption allegations against Hussain have never been able to convince Imran Khan, who chose to ignore the issues. So far, the government has done nothing to change this.
Abdul Wahab is a qualified lawyer and has served on the boards of NIB Bank, Engro Fertilizers Limited and the Indus Valley School of Art and Architecture. He currently serves as Chief Executive of NutriCo Pakistan Private Limited and is a Trustee of the Duke of Edinburgh Awards Programme. His credentials are rounded off by his experience in the public and private sector, which include serving as a Secretary at the Ministry of Finance, Consul General Istanbul, Vice-Chairman of the Export Promotion Bureau and Secretary of Punjab Education Schools.
While Mian Muhammad Nawaz Sharif, the then Prime Minister of Pakistan, banned the use of trade union rights in WAPDA, the WAPDA union continued to fight for the rights of its workers. The government passed laws banning the trade unions in WAPDA. Eventually, WAPDA was handed over to the military administration. In response, the WAPDA union merged with the Pakistan Workers Federation (PWF), a trade union umbrella organization. The unions' headquarters are at 28-Nisbet Road.
WAPDA is a government agency owned by the President of Pakistan. The organization oversees various public and private sector projects in the country. Its board is led by the President of Pakistan. The WAPDA is the biggest economic development agency in the country. In a recent report, WAPDA's board has found that the PPP-China Economic Corridor has been corrupted. The WAPDA board is now under investigation.
Despite its shaky track record, Zardari has also faced a raft of domestic issues, a particularly difficult time in 2010 when the country was struck by a massive flood. Flooding destroyed one-fourth of the country, and millions were left homeless and vulnerable to disease. The government's inadequate response to this disaster was widely criticized. The government was also embroiled in controversy following the extrajudicial killing of Salman Taseer. Taseer was executed after criticizing the blasphemy law, a law introduced decades ago under Zia-ul-Haq.
The Pakistani military leadership has repeatedly attempted a "soft" takeover of the government since the elections of March 1998, although they have always denied the intention to rule the country. The generals have realized that direct forms of government carry responsibilities and accountability and that they can only exercise their power without facing the backlash of the public. And, despite his shaky record in the past decade, he has shown great interest in the health and education sectors.
Independent company
WAPDA is an independent company that regulates all utility bills in the area. Customers can submit their bills through banks or online. There is an option to check the bill online and contact the WAPDA office to inspect a mistake. For example, if your water bill is wrong, you should contact the company that provided you with the water. If the problem persists, contact the company that supplied you with the water and they will send a team to rectify the situation.
According to the committee, the Wapda must be independent in conducting the tests and recruitment of its employees. They should also make sure to follow transparent procedures and recruit only the most qualified people for vacancies. As per the Senate's directives, the Wapda cannot take directions from anyone. Therefore, it must be run independently and not be dictated to by any one. This is a key requirement of any private sector company.
While this process is lengthy, the World Bank played multiple roles in this matter. It acted as an advisor to the Government, an indirect lender to the IPPs through the LTCF, and an indirect lender to commercial lenders through partial risk guarantees. Among the four IPPs financed under PSEDP I and II are the Hub and Uch projects. Hubco held meetings with the Government and the WAPDA to discuss their concerns and requested a neutral environment for dispute resolution.
There are several reasons why WAPDA might be unable to meet the demands of IPPs. First, the WAPDA might be bankrupt and unable to collect tariffs. Its operational efficiency has been compromised by a culture of theft and internal corruption. As a result, the WAPDA's inability to collect tariffs has led to escalation. The WAPDA is unable to recover its costs, which makes it a vulnerable company to a sudden economic downturn.
As a result, the parties are in a legal dispute over the legality of the WAPDA Amendment No. 2. The WAPDA appealed the March 22, 1999, order for arbitration. The Appellate Court suspended the earlier order and restrained the Company from proceeding with the arbitration. The WAPDA then filed challenges in June 1999. The Tribunal met on June 22, 1999, and the judgment was reserved until January 2002.
The government should take a more systematic approach to power generation. WAPDA should focus on procuring the cheapest electricity possible from all sources. That is why it has special tariff arrangements with some independent power producers. For instance, it pays 100% of the capacity purchase price for a certain load factor. For lower load factors, it pays higher average prices per unit. Moreover, the WAPDA must balance the costs of generating electricity against the costs of buying more electricity from independent power producers.
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