1.

0 Introduction

Pakistan Water and Power Development Authority (WAPDA) is an integrated utility

in Pakistan. WAPDA is responsible for the development of Hydel Power and Water S
ector Projects in Pakistan. WAPDA operates through- Power wing and Water wing, I
t is engaged in the generation, transmission and distribution of power. In addit
ion, it also manages irrigation, water supply and drainage system in the country
. Further, it is also responsible for prevention of water logging and reclamatio
n of waterlogged and saline lands. Its responsibilities also include flood manag
ement and inland navigation. WAPDA was created as a Semi-Autonomous Body in 1958
. The company is headquartered in Lahore, Pakistan.
The Pakistan Water and Power Development Authority (WAPDA) was established throu
gh an act of parliament in February 1958 for integrated and rapid development an
d maintenance of water and power resources of the Country. This includes control
ling soil salinity and water logging to rehabilitate the affected land in order
to strengthen the predominantly agricultural economy of the country. As per the
charter, amended in March 1959 to transfer the existing electricity departments
from the federating units to it, WAPDA has been assigned the duties of investiga
tion, planning and execution of projects and schemes for:
• Generation, Transmission and distribution of power,
• Irrigation, water supply and drainage,
• Prevention of water logging and reclamation of saline land,
• Flood control and
• Inland navigation.
Under the later on developments, vis-à-vis the “Energy Policy 1994”, setting up of the
rmal power generation projects was shifted to the private sector. Similarly, as
a result of restructuring of the Power Wing, the utility part was corporatized i
nto independent companies. This shift from convergence to divergence gave birth
to 13 entities to operate in different zones. These are National Transmission an
d Dispatch Company (NTDC), four thermal power generation companies (GENCOs) and
eight distribution companies (DISCOs). The present status of these companies is
of corporate public limited entities under the Umbrella of EPCO, ultimately to g
o privatized as planned. The residual Power Wing is therefore now responsible fo
r major hydro-electric power projects and schemes in operation.
1.2 Water Vision 2025
WAPDA has formulated a comprehensive $25–33 billion National Water Resource and Hy
dropower Development Program me, entitled Water Vision 2025. The Water Vision 20
25 projects are expected to generate 16,000 MW of hydroelectricity. Other goals
are to prevent water shortages, limit drought and increase water storage for a g
rowing population. Five massive hydropower projects have been announced by the P
resident of Pakistan; these are to be completed by 2016, with a generation capac
ity of 9,500 MW. Two of the projects are ready for construction, while three are
in the stages of feasibility studies and preparation of tender documents.
Water Vision 2025 consists of three phases. Phase I was expected to start in 199
3 but was delayed. The priority of water sector projects under Phase I of Water
Vision 2025 are Gomal Dam (NWFP), Mirani Dam and Mithan Kot Barrage at Kachhi Ca
nal (Balochistan) raising of Mangla Dam (Azad Kashmir), Greater Thal Canal phase
I (Punjab) and Thar/Rainee Canals phase I (Sindh). The total cost of these Phas
e I projects will be $2.467 billion with a construction period of five years. Un
der Phase II, Hingol Dam, Balochistan Dam and Satpara Dam (Northern Areas), Chas
hma Right Bank Canal and Khurram Tangi Dam (NWFP), phase II of the Greater Thal
Canal Akhori Dam and Sanjwal Dam (Punjab), phase II of Thar/Rainee Canals, Gajna
i and Sehwan Barrage (Sindh) will be completed in 3–6 years, except Basha Dam, whi
ch will take 8–10 years for its completion. The total cost of Phase II projects wi
ll be $8.94 billion. These 11 projects will have a storage capacity of 12.79 mil
lion acre-feet, would generate over 3362 mW of power, and would irrigate 1.4 mil
lion hectares of land. Under Phase III, Yugo Dam, Skardu Dam, Dhok Dam, Rohtas D
am, Naulang Dam and Khadji Dam will be completed.
1.3 Mission Statement
Our mission is to bring the assurance of energy to our customers, with world cla
ss quality and commitment for satisfaction as we continue in our quest for excel
lence.
1.4 PROGRESS OF POWER WING IN CURRENT FINANCIAL YEAR 2009/2010
During the year, construction of 267.77 Km long transmission lines and 6
5 grid stations (including extension, augmentation and replacement) was achieved
).
1.5 GRID SYSTEM OPERATION
The GSO is maintaining as at present 634 grid stations and 31,929 km len
gth of transmission lines are presently to transmit about 57,157 GWH electricity
annually, linking various power- station to load centers through its four regio
ns i.e. Lahore, Islamabad, Multan and Hyderabad. These regions are availing tech
nical expertise from Technical Services Group (TSG) and System Protection. The T
ransformer Reclamation Workshop is also part of GSO

NUMBER OF GRID STATION

Number of GRID STATION Region KV
12 Lahore 500
10 Islamabad 220
68 Multan 132
135 Hyderabad 66
1.6 Wings of WAPDA
There are three main wings in WAPDA.
• Water Wing
• Power Wing
• Finance/coordination wing.

1.6.1 Water Wing

The organization was also entrusted with the work of implementing Indus
Basin Settlement Plan signed between India and Pakistan in 1960 to develop repla
cement works for management of river water and irrigation system. Since then it
has been engaged in building water development projects which include extensive
research and investigation to augment country's water resources.
Member (Water) controls the water wing which is divided into North, Cent
ral, South and Northern Areas zones. These zones cover, in general, North West F
rontier Province (NWFP), Punjab, Sindh and Balochistan and Northern Areas respec
tively. The activity of water wing involves execution of surface and sub-surface
water development and drainage- Salinity Control and Reclamation Projects (SCAR
Ps). Chief Engineers and Project Directors at various levels are responsible for
effective and timely implementation of Water Wing Projects.
1.6.2 Power Wing
Member (Power) controls the Power Wing, through General Managers and Chi
ef Engineers in the field of hydro-electric power, coordination and WAPDA Power
Privatization Organization. WAPDA has an elaborate setup headed by a General Man
ager for training of its officers and officials at different levels covering all
 the wings of the organization.
1.6.3 Finance/ coordination wing
Member (Finance) is responsible for the functioning of the departments o
f Finance, Internal Audit and Budget and Accounts headed by Chief Auditor (Inter
nal Audit) and Director General Finance (B&C). He also exercises administrative
control over General Manager (Central Contracts Cell), Director General (Taxes)
and Director Public Relations. Managing Director (Admin) is vested with the resp
onsibility for overall administration and services. Secretary WAPDA in addition
to looking after day-to-day affairs of the Secretariat, prepares minutes of the
Authority’s meetings, maintains records of its decisions and issues its directives
and coordinates among the three Wings besides monitoring and implementation of
Authority’s decisions.
1.7 Authority Fund
The Authority Fund consists of the following:
• Loans and grants obtained from the federal and provincial governments
• Sale proceeds of WAPDA Bonds
• Loans obtained by the Authority with general sanctions of the government
• Foreign aids and loans obtained from he IBRD, ADB and other international loan g
iving agencies on such terms and conditions as may be approved by the government
• Sale of power
• All other sums received by the Authority
1.8 Major Functions Of WAPDA
Under the government set out in the License, the WAPDA is entrusted to act as:-
• Central Power Purchasing Agency
• System Operator
• Transmission Network Operator
• Contract Registrar and Power Exchange Administrator
1.9 EMPLOYEES BENEFIT PROGRAMME
1.9.1 Medical
In order to provide medical services to all the WAPDA employees and thei
r families WAPDA has set up an elaborate network of 14 hospitals land 39 dispens
aries located at different stations and cities in the country in addition to WAP
DA central hospital at Lahore that is the headquarters of the organization. WAPD
A hospital complex provides comprehensive medical care and treatment, both for i
n-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 concen
tration. All WAPDA hospitals and dispensaries attend to over 1.60 million patien
ts during report year in their out-door departments while their annual emergency
and casualties attendance exceeds 0.101 million. Besides the medical services i
nclude admission for in-door treatment to over 19,498 patients during report bot
h in WAPDA and non-WAPDA hospitals. Over 40526 surgical operations are performed
in WAPDA hospitals in additions to specialized treatment for cardiac disease an
d other serious and other serious surgical medical cases.
1.9.2 Education
In order to promote and maintain education in various WAPDA colonies and project
s, 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 adja
cent non- WAPDA population. These institutions have performed exceedingly well w
ith some remarkable results.

1.9.3 Pension
WAPDA employees are entitled to full pension on reaching the age of supe
rannuation subject to completing their minimum required service. In financial ye
ar 2000-01, as many as 7,875 pension cases were processed involving payment of R
s. 2210.242 million.
1.9.4 Housing
In order to help WAPDA employees build their own houses a number of coop
erative housing societies have been set up in various cities which purchase land
and develop residential plots for allotment to WAPDA employees. The societies a
t Lahore and Gujranwala have been completed while work on societies at Sheikhupu
ra, Faisalabad, Peshawar, Quetta and other towns is in progress.
1.9.5 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 arrangemen
ts 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

1.10 Thermal Power

As per Government of Pakistan policy all thermal power generation has be
en restructured and four corporatized companies namely Jamshoro Power Generation
Company Limited (GENCO-1) head quarter at Jamshoro district Dadu near Hyderabad
Sindh, Central Power Generation Company Limited (GENCO-2) head quarter at Guddu
district Jacobabad Sindh and Northern Power Generation Company Limited (GENCO-3
) head quarters at Muzaffargarh and Lakhra Power Generation Company Limited (GEN
CO-IV) at Khanote (Sindh) have been formed and registered. Functioning of GENCOs
has commenced.
• Jamshoro Power Generation Company Limited GENCO - I
• Central Power Generation Company Limited GENCO - II
• Northern Power Generation Company Limited GENCO - III
• Lakhra Power Generation Company Limited GENCO - IV

WAPDA s Thermal Power Generation is mainly based on generation of power

from its Steam Turbo-Generators, Gas Turbines (simple as well as Combined Cycle
Units) installed at different Power Stations located in Sindh, Punjab and Baloch
istan provinces. Indigenous Gas & Coal is the main fuel whereas Furnace oil and
HSD are also used as alternative fuel. The total installed capacity is 4664 MW.

Structural formation of all four GENCOs is as under

JPCL
(GENCO-1) CPGCL
(GENCO-2) NPGCL
(GENCO-3) LPGCL
(GENCO-4)
TPS Jamshoro TPS Guddu TPS Muzaffargarh FBC Lakhra
GTPS Kotri TPS Quetta NGPS Multan -
- - GTPS Faisalabad -
- - GTPS Shahdara -
- - CGTM W/Shop F/Abad -

1.11 Pakistan Water and Power Development Authority Key Recent Developments
Jun 29, 2010
Pakistan May Import 1,000MW Of Power From Iran.
Mar 31, 2010
Engro Energy Achieves Targeted Commercial Operations Date Of 217.3MW Qad
irpur project.
Mar 26, 2010
OFID To Extend Loan Worth $31.10 Million For Neelum-Jhelum Hydropower Pl
ant In Pakistan.
Feb 15, 2010
WAPDA s Neelum-Jhelum Hydropower Project To Start Production By 2016.
Dec 26, 2009
WAPDA Invites Tenders For Supply Of Station Battery Set For Dargai Power
Station.

1.12 WAPDA’s ROLE AS DEVELOPMENT ENTITY

The primary development role of WAPDA has been revived. It is now focusi
ng only on Hydel Development and Water Sector Projects to support the national e
conomy and poverty alleviation through improved Hydel-Thermal mix of Power Gener
ation, provision of electricity at affordable price and most pertinently perspec
tive planning and timely execution of Projects to meet the Water and Power deman
d of the growing population, agriculture and industry of the country.
1.13 Installed Capacity of WAPDA System (as of June 2007)
*Installed Capacity of WAPDA System
(as of June 2007)
Hydel 6444 MW
GENCOs 4675 MW
IPPs 5772 MW (including 30 MW Hydel)
Nuclear IPP (Chashnup) 325 MW
Rental 150 MW
Total 17366 MW

2.0 CUSTOMER SERVICES

Respective distribution companies under PEPCO are responsible to deal wi
th all matters of their electricity consumers as per their procedures.
• LAHORE ELECTRIC SUPPLY COMPANY LIMITED (LESCO)
• GUJRANWALA ELECTRIC POWER COMPANY (GEPCO)
• FAISALABAD ELECTRIC SUPPLY COMPANY (FESCO)
• ISLAMABAD ELECTRIC SUPPLY COMPANY (IESCO)
• MULTAN ELECTRIC POWER COMPANY (MEPCO)
2.1 WAPDA
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 po
wer resources, Water and Power Development Authority (WAPDA) was created in 1958
through WAPDA Act, 1958.
2.1.1 LAHORE ELECTRIC SUPPLY COMPANY LIMITED (LESCO)
LESCO
The environment and structure of the power industry throughout the world
are undergoing dramatic change. The power sector is moving from monopoly to pri
vatization 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 genera
tion, transmission and distribution of electricity.
Lahore Area Electricity Board was reorganized into one such corporatized entity
under the name of Lahore Electric Supply Company (LESCO) with effect from 22-03-
1998, with the aim of commercialization and eventually privatization.
2.1.2 Area of Operation
LESCO s area of responsibility covers Civil Districts of Lahore, Kasur,
Okara and Sheikhupura.
2.1.3 Gujranwala Electric Power Company (GEPCO)
 Gujranwala Electric Power Company (GEPCO) has been setup over area of ju
risdiction and network of former Area Electricity Board, which was created in ea
rly eighties.
It encompassed the areas of existing Districts of Gjranwala, Hafizabad,
Sialkot, Narowal, Gujrat and Mandi Bahauddin.GEPCO was incorporated on 25th Apri
l, 1998 and obtained certificate for commencement of business on 5th June, 1998.
Management and Administration is entrusted to a Board of Directors. We have abou
t 2,461,729 connections, Average monthly collection for the year 2009-10 is appr
oximately 3961 million Rupees.
2.1.4 FAISALABAD ELECTRIC SUPPLY COMPANY (FESCO)
FESCO Distributes and supplies electricity to about 2.88 million custome
rs within its territory with a population over 26.5 million under a Distribution
License granted by National Electric Power Regulatory Authority (NEPRA) pursuan
t to the Regulation of Generation, Transmission and Distribution of Electric Pow
er Act, 1997 (NEPRA Act). Geographical service area of FESCO comprises Faisalaba
d, Sargodha, Mianwali, Khushab, Jhang, Bhakker, T.T Singh and Chiniot.
2.1.5 ISLAMABAD ECTRIC SUPPLY COMPANY (IESCO)
Area Electricity Board (AEB) Islamabad was one of the eight AEB s consti
tuted through amendments in WAPDA Act during 1981. Later Government of Pakistan
approved revamping of WAPDA power sector, resultantly twelve corporate entities
were formed. Eight Distribution and Supply Companies (DISCOs), one National Tran
smission and Distribution Company (NTDC) and three Generation Companies (GENCOs)
. All these companies have been incorporated under Companies Ordinance 1984.
2.1.6 MULTAN ELECTRIC POWER COMPANY (MEPCO)
MEPCO the Multan Electric Power Company is one of the biggest Distributi
on Company of WAPDA. It s area of operation is from Sahiwal to Sadiqabad, Bahawa
lnager to Bahawalpur and Tounsa Sharif to Rajanpur and bordering with Sind, Balo
chistan and NWFP Map.
The Charter of MEPCO is to provide the reliability, quality and safety o
f electric power supply to the consumers in its Jurisdiction.
MEPCO is envisaged for the creation of the resources and engineering plans for a
dditions, renovation and augmentation of the distribution system in order to ach
ieve charter.
MEPCO is putting efforts to make it a viable and progressive utility to
take care of consumer s power demand.
2.2 Central Power Purchasing Agency (CPPA)
As the Central Power Purchasing Agency (CPPA), for procurement of power
from GENCOs, Hydel & IPPs on behalf of Distribution Companies (DISCOS), for deli
very through 500 kV, 220 kV & 132kV Network.
2.2.1 System Operator
For secure, safe and reliable operation, control and generation facilit
ies.
2.2.2 Transmission Network Operator
For Operation & Maintenance, Planning, Design and expansion of the 500 k
V and 220 KV.
2.2.3 Contract Registrar And Power Exchange Administrator (CRPEA)
As CRPEA, to record and monitor contracts relating to bilateral trading
system.
2.3 Energy Resources & Power Development History
At the time of independence, Pakistan inherited 60MW of power generation
capability for a population of 31.5 million, yielding 4.5 units per capita cons
umption. Twelve years later, when WAPDA was created in 1959, the generation capa
city had increased to 119 MW. By that time country had entered the phase of deve
lopment, which required a dependable and sold infrastructure, electricity being
its most significant part. The task of power dev elopement was undertaken by WAP
DA for executing a number of Hydel and thermal generation projects, a matching t
ransmission network and a distribution system, which could sustain the load of r
apidly increasing demand of electricity.
 The effects of WAPDA’s professional approach to find the solution to multi
farious problems did not take long to show. After first five years of its operat
ion by 1964-65, the electricity generation capability rose to 636 MW from 119 in
1959, and power generation to about 2,500 MKWH from 781 MKWH. Number of consume
rs in 1959 to 688 thousand in 1965, as many as 609 villages had electricity supp
lied to them by 1959, increasing to 1882 in 1965. The rapid progress witnessed a
new life to the social, technical and economic structures of the country, mecha
nized agriculture started, industrialization picked up and general living standa
rds improved. In the year 1980 the system capacity touched 3000 MW which rapidly
rose to over 7000 MW in 1990-91.
Now the total generation capacity from WAPDA’s own hydel and thermal sourc
es after completion of Chashma Hydro Power Plant plus generation from independen
t power procedures stands at 15764 MW.
2.4 Power Sector Reforms & History Of NTDC
Over the past 15 years, Pakistan has been following a strategy of deregu
lation, privatization and transformation of its public sector entities (PSEs), i
ncluding its two major power utilities, Water and Power Development Authority (W
APDA) and Karachi Electric Supply Corporation (KESC). WAPDA was established in
1958 as a semi-autonomous agency to coordinate the development of Pakistan s wat
er and power resources.
NTDC previously was the part of Water and Power Development Authority (W
APDA). It was known as Transmission and Grid Station. In December 1998, the WAPD
A Act was amended, which allowed the creation of Pakistan Electric Power Company
(PEPCO), and unbundling of WAPDA’s Power Wing into:
eight (9) distribution companies (formed from existing area boards);
three (4) generating companies (comprising 11 of WAPDA’s generating plants); and
National Transmission and Dispatch Company (NTDC).

2.5 Formation of PEPCO

PEPCO was created in May 1998 as a Management Company, owned by Governme
nt of Pakistan vested with the following corporate objectives
• The corporatization and commercialization of WAPDA’s assets block in generation, t
ransmission and distribution.
• Overseeing the design and implementation of the Manpower Transition
• Program stewardship of early business operations by the newly formed companies
• Privatization initiative
2.6 Formation of NEPRA
National Electric Power Regulatory Authority (NEPRA) was created to regu
late the unbundled Power Sector in order to promote competitive power market to
ensure reliable power supply at affordable rates to millions of electricity cust
omers in Pakistan. Major responsibilities of NEPRA include:
• Issuance of licenses to the power utilities.
• Tariff determinations in a transparent manner.
• Establishment of performance standards for the utilities.
2.7 CHARTER OF DUTIES IN WAPDA
The charter of duties of WAPDA includes investigation, planning, and exe
cution, of schemes in the following fields.
Generation, transmission and distribution of power.
• Irrigation, water supply and drainage.
• Prevention of water logging and reclamation of water logged and Salind land.
• Flood control and inland navigation.
• Inland navigation.
2.8 Follow Sind-Tass Agreement
The organization was also entrusted with the work of implementing Indus
Basin Settlement plan signed between India and Pakistan in 1960 to develop repla
cement works for management of river water and irrigation system. The life savin
g action for Pakistan’s agriculture has been WAPDA’s role in the field of water logg
ing and salinity. During past four decades WAPDA has planned and executed 60 scr
aps at a total cost of Rs.37.8 billion to cover an area of 19 million acres of a
ffected land for putting it back into production.
2.9 Division of WAPDA
NTDC is only one of the above companies, which is connected with all the
companies. Its major operations are based on the purchasing of electricity from
generation companies and selling it to distribution companies.
The other functions of NTDC are performed to handle high voltage electricity wir
es in preinstalled electrified areas and those areas to which Discos want to ele
ctrify. So we should have knowledge about all stakeholders which are generating
and distributing electricity in Pakistan like what are their major functions, pr
ojects, and their locations in order to make budgets through which NTDC will ear
n revenue in future.
2.10 Major Stakeholders Of WAPDA
Now we discuss all the companies which are the major stakeholders of WAP
DA.
These are:
• Power / Electricity Generation Cos.
• Power / Electricity Distribution Cos.
2.11 Major Sources For Generation Of Power / Electricity Are
• HYDEL Power (Controlled by Residual WAPDA)
• Thermal Power (Controlled by PEPCO)
• IPPS (Independent Power Projects) Controlled by PEPCO
• Rental Power Projects (Controlled by PEPCO)

2.12 WAPDA Residual Projects & Functions

2.12.1 Water Dam
To Constructing ,repairing & maintaining of dams is the major function o
f WAPDA.
2.12.2 Hydel Power Generation
As a consequence of partition of the Indo-Pakistan Sub-Continent in 1947
, India and Pakistan became two independent sovereign states. Hydel generation c
apacity of only 10.7 MW (9.6 MW - Malakand Power Station & 1.1 MW - Renala Power
Station) existed in the territory of Pakistan. With the passage of time, new Hy
del Power Projects of Small and Medium capacities were commissioned including th
e first water storage dam and power house at Warsak due to which country s Hydel
capability raised to about 267 MW uptill 1963.
The Irrigation System which existed at the time of partition in 1947 was
divided between the two countries without any regards to the irrigation boundar
ies which resulted in an international water dispute which was finally resolved
by signing of the Indus Water Treaty in 1960 under the aegis of World Bank. The
Treaty assigned three Eastern rivers (Ravi, Beas and Sutlej) to India and three
Western rivers (Indus, Jhelum & Chenab) to Pakistan. It also provided constructi
on of replacement works called Indus Basin Projects (IBP) to compensate for perp
etual loss of Eastern rivers water. The works proposed under the Treaty include
d two multipurpose dams i.e. Mangla Dam on Jhelum river and Tarbela Dam on Indus
river having the provision of power generation. These were commissioned in 1967
& 1977 respectively. However, their capacities were subsequently extended in di
fferent phases.
WAPDA RESOURCES
3.1 Dames
There are many dams under WAPDA control. Some important names of these d
ams are given below.
3.1.1 Tarbilla Dam
3.1.2Cashma Power Plant
3.1.3 Mangla Dam

3.1.4 Warsak Dam

3.2 Hydel Generation Capacity
The total capacity of 13 No., Hydel Stations as of today is 6443.56 ~ 64
44 MW which is 37.10% of total installed generation capacity of WAPDA. During 20
07~2008, aggregate energy sharing during the year was 33.32%. The Hydel Generati
on Capacity was reduced from 6463.16 MW to 6443.56 MW due to decommissioning of
Jabban Hydel Power Station after a fire incident in November, 2006.
3.2.1 Seasonal Variations Of Hydel Generation
The seasonal variations of reservoir levels and consequent reduction in
Power outputs of storage type hydel projects in Pakistan are very pronounced. Ta
rbela with maximum head of 450 ft. experiences variation of 230 ft. while Mangla
has 162 ft. variation against the maximum cranium of 360ft.
The lean flow period of Tarbela reservoir is from November to June when the Capa
bility reduces to as low as about 1350 MW against the maximum of 3692 MW during
high head period i.e. August to September (15% permissible overloading on Units
1~10). Lean flow period of Mangla reservoir is observed from October to March w
hen the minimum generating capability is 500 MW. The capability rises to as high
as 1150 MW during high head period (15% permissible overloading).
In all, WAPDA s Hydel generating capability varies between the two extre
mities of 2414 MW and 6746.0 MW over the cycle of a year.
3.3 Pepco Projects & Functions
PEPCO was basically established by the Federal Govt. to supervise all th
e companies’ transition process from WAPDA. No doubt all the companies are indepen
dent and registered under company ordinance 1984, but PEPCO is working till now
& control over there as an umbrella on all the companies.

3.4 Thermal Power

As per Government of Pakistan policy all thermal power generation has be
en restructured and four corporatized companies namely Jamshoro Power Generation
Company Limited (GENCO-1) head quarter at Jamshoro district Dadu near Hyderabad
Sindh, Central Power Generation Company Limited (GENCO-2) head quarter at Gudd
u district Jacobabad Sindh and Northern Power Generation Company Limited (GENCO-
3) head quarters at Muzaffargarh and Lakhra Power Generation Company Limited (GE
NCO-IV) at Khanote (Sindh) have been formed and registered. Functioning of GENCO
s has commenced.
(GENCO-I) Jamshoro Power Generation Company Limited.
(GENCO-II) Central Power Generation Company Limited.
(GENCO-III) Northern Power Generation Company Limited.
(GENCO-IV) Lakhra Power Generation Company Limited.

WAPDA s Thermal Power Generation is mainly based on generation of power from its
Steam Turbo-Generators, Gas Turbines (simple as well as Combined Cycle Units) i
nstalled at different Power Stations located in Sindh, Punjab and Balochistan pr
ovinces. Indigenous Gas & Coal is the main fuel whereas Furnace oil and HSD are
also used as alternative fuel. The total installed capacity is 4664 MW.
Structural formation of all four GENCOs is as under:
3.5 IPPS (Independent Power Producers) Controlled By PEPCO
The country had been experiencing severe power shortage during eighties
and early nineties. As a result, load shedding had to be resorted to all over th
e country. This adversely affected the national economy. It was not possible fo
r the Govt. to establish Power Plants in public sector due to shortage of funds.
In order to eliminate power shortage/load shedding in the minimum possible time
, the Government constituted an Energy Task Force in 1993 to devise a consolidat
ed and comprehensive policy for revamping and rejuvenating the energy sector. On
the recommendations of the Energy Task Force, the Government announced a “Policy
Framework and Package of Incentives for Private Sector Power Generation Projects”
in March 1994 for a large scale induction of the private sector in power develop
ment. The said Policy offered a fix level zed tariff of US$ 5.57 / kWh to the pr
ospective investors (US$ 6.1 / kWh average for 1-10 years) and a number of other
incentives to attract foreign investment in the power sector.
3.5.1 IPP Installed Capacity
In 1994, the government formulated a power policy that allows
the private sector to invest in the power sector to ensure sufficient
generation capacity. The policy also allowed full flexibility to indepe
ndent power producers (IPPs) to bring capacity on line as quickly as possib
le at predetermined power purchase prices. The government guaranteed implement
ation, fuel supply, and power purchase. (By 2001, the private sector’s share o
f installed capacity reached 5,551MW, all of which were oil-fired thermal
plants.)
1292 MW (Net 1200 MW) HUB Power Project the biggest power plant in the p
rivate sector contracted in 1992 started commercial operations in March 1997. Sh
ortly after commissioning disputes arose between GOP / WAPDA and HUBCO on tariff
and other issues. After protracted negotiations, these were resolved through Se
ttlement Agreement of December 2000 signed by the GOP, WAPDA and HUBCO.
This resulted in a lower tariff entailing a saving of about 3 billion do
llars over 30 years term of the Power Purchase Agreement. WAPDA also privatized
its 1638 MW (Net 1342 MW) Gas Turbine Power Station, Kot Addu in June 1996 by in
corporating it under the name of KAPCO and selling its 36% shares to Internation
al Power of UK. After extensive correspondence/negotiations with the Internation
al Power, the Power Purchase Agreement and other relevant documents have been am
ended, providing inter-alia, reduction in tariff from Cents 5.60 / kWh to Cents
5.04 / kWh, resulting in a saving of about 1.3 billion dollars to WAPDA over 25
years term of the Agreement.
3.5.2 Rental Power Projects
During the Government of PM Shaukat Aziz (2006), ECC in its decision of
16th August, 2006 approved 150 MW Rental Power Plants proposal by WAPDA / NPGCL
for installation at Piranghaib, Multan as emergency measure subject to acceptanc
e of tariff by NEPRA, stipulating that WAPDA should only rent as much power as i
s absolutely necessary to be utilized with high load factor for economic utiliza
tion of capacity. The ECC was briefed by then government that given the urgency
to have additional power capacity before next summer as per WAPDA’s demand project
ions and the long gestation period for new plant, renting of plant/plants appear
s to be the only short term solution if shortfalls are to be met.

Further, as the commissioning of the new IPPs for which gas has already
been allocated will take 2-3 years, practical arrangements may be worked out wit
h the Ministry of Petroleum and Natural Resources to utilize this gas for the re
nted plants in the intervening period. The then Planning and Development Divisio
n concurred with the proposal of M/o Water and Power to keep the momentum of eco
nomic growth progressive, and also to meet the high anticipated power shortages
in the country.
During the Caretaker Government of PM Mian Muhammad Sommro (15.02.2008)
, the ECC approved four Rental Power Plants each of 200-300 MW (combined capacit
y 1000-1200MW) as Rental Power Plants in private sector to be located at Sahiwal
, Gakhar, Kotlakhpath, Sialkot, Shikarpur, Jamshoro, Eminabad & Sheikupura. The
ECC advised that the RPPs be arranged for a period of four years, PEPCO would re
evaluate RPPs location sites on the basis of oil storage space plus transportati
on and environmental impact. Secretaries Finance and Water & Power along with MD
-PPRA will review the procurement mechanism and avoid delay in induction of RPPs
while making it PPRA- compliant.
3.6 Power Policy
3.6.1 Power Policy 1995
3.6.2 General
The Government of Pakistan in March 1994 announced the Policy Framework
and Package of Incentives for private sector power development in the country. I
t received a tremendous response albeit for all Thermal Plants. GOP now intends
to encourage proposals for power generation based on indigenous resources namely
its hydel resources. Hydel power being cheaper, will provide tariff relief to t
he consumers, utilize indigenous resources, involve Pakistani entrepreneurs and
provide benefits of economic growth to the relatively backward parts of Pakistan
.

3.6.3 The Need For A Separate Hydel Power Policy

In Pakistan nearly all hydro potential results from discharges into the
Indus River basin. Discharges result primarily from precipitation and snow-melt
in the northern mountainous ranges of the country. Discharges take place in smal
l rivulets coming further down to the bigger tributaries of River Indus and then
to Indus River itself. The development of hydropower projects however, is chara
cterized by remote locations and seasonal variations. Pakistan s climatic factor
s including rainfall and snowmelt, make it relatively easy to develop hydel gene
ration during the months of July to December while the period January to June is
extremely dry in terms of stream flow. In order, therefore, to arrest the risk
of over development in summer months that would create an unbridgeable gap in wi
nter months, the total requirement of hydel plants in private sector may be limi
ted to 2,000 MW upto the end of the 9th Five Year Plan. However, the limit of 2,
000 MW will be reviewed at a later stage and can be enhanced to suit the nationa
l priorities and power demand growth. Realizing that these peculiarities of hydr
opower development necessitate special consideration the Government has devised
an attractive policy package to evoke response of private sector similar to that
of thermal power. The salient features of the policy framework and package of i
ncentives devised for development of hydropower through private sector.
3.7 Power Policy 2002
3.7.1 Introduction
Electricity constitutes one of the most important components of infrastr
ucture and plays a key role in national growth and development. With only about
half of nearly 140.5 million people (2001 population estimate) having access to
electricity, a huge population base provides an ideal opportunity for expansion
of electricity generation. The growing pace of urbanization and industrializatio
n also puts a premium on demand for electricity.
Demands for augmenting the power infrastructure, unsatisfactory performa
nce of public sector entities, ever-squeezing budgets in the public sector, the
need to make the tariff free from subsidies and cross-subsidies and reflect mark
et prices etc., provide motivation for resource mobilization, improving efficien
cy through involvement of the private sector, to reduce the burden on budgetary
resources caused by ailing enterprises and more importantly, to meet consumer ex
pectations within affordable limits of tariff.
Reform of the power sector through restructuring and deregulation is hig
h on the agenda of the Government of Pakistan (GOP). The GOP is committed to pur
sue a far-reaching reform program me for the power sector and to help meet the c
ountry s future power needs. Implementation of the envisaged program me will bri
ng about a gradual transition of the power system from integrated, state-owned u
tilities to a decentralized system with separate generation, transmission and di
stribution entities, having substantial private ownership and management, reflec
ting and encouraging a commercial and competitive operating environment.
3.7.2 Objectives
The main objectives of the Policy are:
• To encourage and ensure exploitation of indigenous resources,
which include renewable energy resources, human resources,
participation of local engineering and manufacturing capabilities;
• To provide sufficient capacity for power generation at the least
cost, and to avoid capacity shortfalls;
• To be attuned to safeguarding the environment.
• To ensure that all stakeholders are looked after in the process, i.e. a win-win
situation for all; and
3.7.3 Scope
• The scope of the Policy covers.
• Projects developed by the public sector and then divested.
• Public-private partnership projects; and
• Private sector projects;
• Public sector projects;
3.8 2009 Policy Framework For New - Captive Power Producers
To lessen the gravity of power shortage in the country it was decided by
WAPDA/PEPCO to acquire surplus and redundant Captive Power from APTMA members a
s one of the supply side measures. This Captive Power was mostly oil based. Subs
equently, Sugar Industry also made a similar offer for sale of surplus (biogases
based) Captive Power. So far about 182 MW produced by different CPPs on differe
nt fuels could be fed to DISCOs on take-and-pay-basis at tariffs approved by WAP
DA Authority/PEPCO under the guidelines of NEPRA. Up till now APTMA remains the
main contributor.

3.8.1 NTDC Development Programs

3.8.2 Current Projects
Addition of new transmission lines and sub stations is an integral part
of NTDC program for strengthening/augmentation and expansion of the existing int
egrated system in order to meet the power transmission requirements efficiently
& effectively and for dispersal of power from generating plants to the load cent
ers.
To cater for the above, a number of schemes have been taken in hand. A l
ist of the ongoing projects is given in the tables below.
Approved PC-I cost at US$1=Rs. 30.83
3.9 Finance department
Finance department plays vital role in every organization we can say tha
t it’s a back born of every organization. Without it nobody can start the operatio
ns of any type of the business. WAPDA is generating revenue through producing e
lectricity from Dams selling to Discos. I have served a week in finance departme
nt and learned a lot of things. Mr. Naseem has guided me for finance department
working.

3.9.1 Hierarchy of Finance Department

3.9.2 Manpower in Finance department
3.9.2.1 Finance Director Staff (Head Office) Summary:
F.D (NTDC) 01
Manager Finance (C.A) 01
Manager Finance (CPC) 01
Deputy Manager (B & A) / F & TA 01
Deputy Manager 03
Assistant Manager 08
Account Officer 16
B. Examiner 01
Steno G-I 01
Steno G-II 02
Account Assistant 23
Cashier 10
Junior Clerk 10
Driver 04
Naib Qasid 06
Daftri 01
--------------------------------------------------------------------------------
----------------------------------
Total 80
3.9.3 Different sections of Finance Department
3.9.3.1 Budget
Each department of NTDC makes its budget that how much their expenses ma
y occur during next year. They make their budget through previous year estimated
budget and actually expenses occurred. Each department sends the budgeted expen
ses requirements to the finance director office in budget section. Budget sectio
n does consolidate all the budgets and make comparison in one sheet in order to
get approval of the budget for all the departments from higher authorities. Norm
ally the final approval of budget is given less than the amount which is mention
ed in the budget requirement.
Whenever any office informs that more funds are required during a financ
ial year then solid reason has to given. That request again passes through all f
ormal way to get budget approval from the higher authorities. This section not o
nly consolidates all the budgets of each department but also makes the budget of
its own department (Finance Director Office).
3.9.3.2 Admin
Admin section exists almost in all departments of the company. This sect
ion deals with all the matters related Human resource like attendance record, sa
laries, promotion cases forward to concern persons, maintaining stationary requi
rements and all the admin work.
3.9.3.3 Banking & Imprest
This section helps to release the funds. Whenever budget approved, copy
of budgets sent to concern departments, offices. Afterwards any office may reque
st to release the funds which are approved from the higher authorities to Bankin
g & Imprest section. This section counter check the funds approval and limit the
n send request to top management.
When request is recommended this section sends request to Manger Finance
(treasury) Nepir Road Lahore. This person currently doing work under PEPCO and
manages all the funds which receive from all the companies which are divided by
WAPDA.
3.9.3.4 Inter Office Transactions
Whenever material moves among the departments, then cash is not given an
d transaction is recorded internally. This section is responsible to record IOT.
After a week or a month ledgers of internal offices are reconciled.
3.9.3.5 Payment / Establishment Section
This section is responsible to pay the cash. Firstly all bills are check
ed and verified. Then limits are checked of that person who claimed the amount b
y this section. Afterwards expense is recorded by both way computerized and manu
ally. Then voucher is sent to cashier who pays the bill by issuing the cheque. A
lmost all payments are made by bank cheque.
3.9.3.6 Book Keeping
This section is responsible to maintain all the records of accounts file
s. There are three types of voucher files.
It includes as under:
• Bank Payment Voucher Files
• Bank Receipt Voucher Files
• Journal Voucher
3.9.3.7 Process of approval and payment for a budget of offices
Firstly budget makes and approves by concerned department chief, then se
nds to budget department of finance. Budget department consolidates all the budg
ets and make comparison with previous year and make one sheet budget of all depa
rtments of NTDC. Budget checked by Finance Director and Approved by Board of Dir
ectors. Then fund demand request is sent to Banking and Imprest Section to relea
se the funds. The request is flowed from top to bottom and after implementation
bottom to top.
3.9.3.8 Letter of Credit
This section is deals all matters of import and export of equipment of e
lectricity transmission.
3.9.3.9 Pension Cell
This section is very important for the every permanent employee after hi
s retirement. However this section deals with all the employees of NTDC but work
ing under the Director Finance.
3.9.3.10 G.A.T
This section deals with the issuance, control of employees salary slips,
incentives, and allowances.
3.9.3.11 G.S.T
This section deals with the deduction of taxes from the salaries of empl
oyees and other tax payable equipments.
3.9.3.12 Consolidation
This section basically collects the accounting record from all sections,
consolidate them and make consolidated final account of NTDC.
3.10 FINANCIAL OVERVIEW OF WAPDA
FINANCIAL RESULTS DURING 2008-2009
FINANCIAL OVERVIEW OF WAPDA
FINANCIAL RESULTS DURING 2008-2009
Revenue (Rs. in Million)
Sale of Electricity 62,745.023
Rental & Service Income 182.537
Amortization of Deferred Credit 1,009.089
Other Income 1,592.379
Total Revenue 65,529.028

EXPENSES
Cost of Electricity 61,886.892
Operating Expenses (inch depreciation) 6,637.902
Financial Charges 304.739
Tax -
Total Expenses 68,829.533
Loss for the year (3,300.505)

FINANCIAL POSITION AS ON 30.06.2009

ASSETS (Rs. in Million)
Tangible Fixed Assets 39,704.222
Long Term Advances / deposits 23.281
Current Assts 26,123.094
Total Assets 65,850.597

Equities & Liabilities (Rs. in Million)

Share Capital & Reserves 4,779.078
Long Term liabilities 16,220.889
Current Liabilities 44,850.630
Total Expenses 65,850.597

COORDINATION
4.1 Coordination
The head of this department is Muhammad Adeeb (Deputy Director Account). 27 emp
loyees are working in this department. This department maintain the record of al
l the subordinate offices, maintain their account and prepare financial statemen
ts and also make investments of the funds of this department. The main function
of book keeping department includes
4.1.1 Book Keeping
Book keeping section maintains the record of the entire department, make financi
al statements and also compile their records. Following is the procedure of book
keeping:
• Cash Book Entries
i. Imprest cash book
ii. Collection cash book
• General Ledger
• Subsidiary Ledger
• Trial Balance
• Statement of Profit and Loss
All the accounts are prepares manually but only Trial balance is prepares with t
he help of computer software.

4.1.2 Investment
The budgeted and consolidation department usually invest in the banking sector a
nd they invest for short or long period of time.
4.2 Budgeting Department
This department prepares, compile, approve and estimate the budget of all the de
partment of WAPDA. Assistant Director Muhammad Ahmed Qureshi who is responsible
for the working this department and he checks and approve the budgets. All the b
udgets are prepared by Account and budgeting officer Muhammad Inam. Here below i
s the Performa of budget.
4.2.1 Type of Budget
There are three types of budgets:
• Estimated Budget
• Purposed Budget
• Revised/Final Budget
4.2.2 Preparation of Budget
Purposed budget is prepares in the concerned department and compile in the budge
ting department. Budgeting department prepare estimated and revised budget.
4.2.3 Who Approves the Budget?
When a department sends its purposed budget to the budgeting department then thi
s department after discussion approves this budget and budget is approve by Depu
ty Director B & C and then sends it to the D.G Finance B & C.
4.3 BUDGET AND CONSOLIDATION
4.3.1 Introduction of B&C Department
Budget and consolidation department plays very important role in WAPDA.
Pakistan water and power development authority is an autonomous government body
created by the virtue of water and power development authority act 1958 .its sta
tutory mandate is to utilize water and power resources of the country on the a u
ndefined and multipurpose basis .WAPDA was empowered , among other to frame sche
me for the generation of hydel and thermal power, transmission and distribution
of power and construction ,maintenance and operation of power houses and WAPDA h
as been divided into three major entities for according and financing purpose vi
a “power”,” water” and co-ordination wings power wing activities except hydel power have
now been transferred to PEPCO.
The matter relating to the budget and accounts of the coordinating wing
are handled by director general finance (B&C) WAPDA, Lahore who report to the au
thority through member finance WAPDA. He has three directors under him namely di
rector, finance (admin & regulation), director finance (budget consolidation) an
d director accounts (funds).
4.3.2 Jobs Perform By Budget and Consolidation Department
The director finance (budget & consolidation) is responsible to the dire
ctor general finance (B&C) WAPDA, Lahore. He is assisted by 3 officers in BPS-18
, 5 officers in BPS-17, 7 officers in BPS-16 and 60 non gazette employees as per
attached organization chart. Following jobs and being performed in the director
ate.
• Dealing with the audit report/advances/draft paras pertaining to the common serv
ices offices (annexure A&B)
• Consolidation of accounts of the offices/organization of the coordinating (commo
n services) wing of WAPDA.
• The pre-audit and payment in respect of claim relating to the common services of
fices.
• Consolidation of accounts of the offices/organization of the coordinating Issuin
g of funds to the common services offices(annexure)
• Investment of the surplus funds of WAPDA with different banks/financial institut
ion with the approval of the competent authority
• The maintenance of the receivable /payable accounts with power wing, water wing
and the corporative entities under PEPCO and reconciliation of sub accounts with
these quarters.
• The director finance (B&C) WAPDA works as member of WAPDA welfare fund.
• Maintaince of the accounts of employees’ medical benevolent fund.
• Maintenance of authorities bank accounts and reconciliation with the banks
• . Preparation /process of cases regarding grants of the long term advances and e
armarking of funds for employees of coordinating wing of the WAPDA.
• Process of the cases of the purchase of the physical assets received from differ
ent offices by the scrutiny committee constituted under economy measures.
• Scrutiny/process of (a) revised budget estimates and budget estimate (b) cases o
f the additional budget grants and (c) re-appropriation of budget grants in resp
ect of the accounting units of the coordinating. Wing, WAPDA hospital dispensari
es under D.G (medical services) WAPDA Lahore and other directorates roe which pa
yment is being made centrally (annexure A)
• Administration of employees of finance cadre from BPS 1 to 15.
4.3.3 Departments under Budget and Consolidation, we have visited:
• Insurance
• Funds (Budgeting)
• Pension
• Coordination (Book keeping)
4.3.4 Expenditure of the Coordinating:
Expenditure of the coordinating wing is met with from share (authority o
verhead) provided by power and water wing@ 1.0% and 0.8% of the budget of the co
ncerned wing respectively. The size of the budget of the coordinating wing for y
ear 2009-10 is Rs 982.407 million.
4.3.5 Capacity of the Budget Grant of the WAPDA Hospital
The capacity of the budget grants of the WAPDA hospital/dispensaries und
er (medical services) WAPDA is Rs 1010.53 million. The expenditure of WAPDA medi
cal directorate is met with from amount provided by three wings of WAPDA and the
corporative entities of the PEPCO on the basis of the number of the employees (
serves/retired) of the respective wing/entity receiving medical from these hospi
tal/dispensaries.

4.3.6 Offices on the Payment Roll of the Director General Finance (B&C)
• Authority {G.M (Admin), Director General (S&GA), Director (S&E), Secretary, WAPD
A And Director (Legal)}
• Admin &Coordinating
• Director(O&M)
• Director General Finance (B&C)
• Director General WAPDA Audit
• Director ( Stationary Store)
• Director (Security)
• Law Division
• Director (Pension)
• General Manager; Central Contract Cell
• Secretary, WAPDA Welfare Fund.
• Director (Rules)
• Telephone Exchange
• Director General(Insurance)
• WAPDA Lodges/Hostels
• Director Accounts (Funds)
• Director Education
• Director Intelligence
• 2.6.19 General Manager (M&S) WAPDA
4.4 Offices under Financial Control of the General Finance (B&C)
Sr. # Name Of The Organization Code
1 Director General Finance (B&C)
HOC
2 Director General, Medical Services, WAPDA Complex Lahore WMS
3 Transport Directorate, Sunny View, Lahore TPT
4 WAPDA Printing Press Sunny View, Lahore
WPP
5 Central Stores Stationary Sunny View Lahore
WSS
6 Chief Auditors WAPDA Al-Jannat Building, Bank Square Lahore CAR
7 Public Relation Division, G26 WAPDA House Lahore
DPR
8 Building Circle, 334-WAPDA House Lahore
BCD
9 XEN Building Division Hyderabad WBH
10 XEN Building Division, Peshawar
WBP

CHAPTER 5
HYDEL Department
5.1 Hydel
This department plays back born role in WAPDA. Through it WAPDA produce
more than 5100 MW electricity at cheap cost because electricity produce through
HYDEL and HYDEL means generate or creating power through flow of water than mov
ing turbines because of this power generate. The HYDEL generation is 98% under t
he WAPDA from HYDEL development projects. The electricity which produce through
HYDEL is very low cost just less than RS 70.
5.2 Functions of hydel:
HYDEL department is performs many function but some Following are the ma
in function performs by the hydel development head office situated in Gardee Tru
st Building Napier road Lahore.
5.2.1 Budget Section
Assistant Director Mjahid Hussain is the head of this section. The main responsi
bilities of this section include:
• Prepare the estimated budget
• Compile the budget
• Approved or make queries the budget of a sub office
Note: Budget prepares at site and compile in this department.
This section approve loan for the construction of new dams, for repair a
nd maintained of hydel power stations, for purchase of machinery, stationery and
traveling expenses of the hydel offices. This section compares the new budget w
ith the estimated budget and then approved and sends this budget to the G.M Fina
nce office for the approval a payment of fund.
5.2.2 Inter Office Transaction (IOT) Section
Assistant account officer Tahir Abbass Khan is supervising this section.
IOT section is responsible for the transaction between sub offices of the hydel
development. Debit/Credit invoices and Super scrap cheque are used for inter of
fice transaction. The balances are quarterly reconciled and cash section of the
IOT is transfer and received funds to the sub ordinate offices.
5.2.3 Compilation Section
The budget and account officer Waqas Ahmed is controlling all the workin
g of compilation section. This section compiles the data and accounts of sub off
ices, check their balance sheet, cash statements and other financial record. For
this purpose they are using software named as ERP (Enterprise Recourse Planning
).

5.2.4 Imprest, Establishment and Account Section

There are two sub sections of this section
• Establishment
This section pass all those expenses which are needed by the admin section for t
he operation, check all the payment voucher and assign a token number to these v
ouchers. The budget and account officer can pass any amount for recurring expens
es but for the non recurring expenses he can approved only up to Rs. 50000.
• Banking and Imprest
This section deals in the Imprest expenses of:
• head office (Hydel Development)
• 20 lower foundations offices.
Being head office it provides the funds to the above mention offices. Imprest li
mit for the recurring expenses is depends upon their budget and monthly expenses
. At least 3 months expenses should consider knowing the imprest limit. Followin
g are the main recurring expenses of offices under hydel development:
• Salary
• Utility Bills
• Traveling and Accommodation etc.
There are three main types of account using this office are:
• Main Imprest account
• Imprest account
• Collection
Amount from main imprest account can only transfer through authority letter form
the imprest account the amount can be transfer through the bank cheque and for
collection cheque there is no advice and no cheque is use the amount transfer di
rectly to the head office’s account.
5.2.5 Admin Section
Admin department play vital role in WAPDA. Because it joint all departme
nt of WAPDA with each another. The admin department controls the working of the
overall department, assign their duties, and arrange training programs for emplo
yees inside the office or for the employees in the sub offices. There are 1600 e
mployees working under this department.
5.3 Share and capacity of hydel throughout total generation
Before 10 years generation is 70% from HYDEL and 30% from thermal but no
w the 30% from HYDEL and 70% from thermal. So the cost is very high because of m
ore thermal generation. The capacity of HYDEL production is 27000 million units
to 30000 million killo watts (MKH) but still the total requirement is 90000 mkh.
5.4.1 Sources of generation
HYDEL generation is getting from fallow of water in dams such as
• Terballa dam
• Varsac dam
• Mangla dam
• Other small dams
5.4.2 WAPDA thermal
Four generation companies which are categories as company one, company t
wo, company three and company four. For example the generation company at Jamsho
ro.
5.4.3 Fuel wise generation
Fuel wise generation provide electricity according to the following ways.
• Use Furness oil or residue Furness oil(RFO)
• Use of gas
• Use of high speed diesel(HSD)
• Use of coal.
5.4.4 Cost of thermal generation
The cost of thermal generation is very high according to the HYDEL gener
ation. The cost of thermal generation of electricity is rupees 300000 million an
nually.
5.4.5 Independent power producers (IPP)
These are private companies generate the electricity and make the contra
ct with WAPDA and provide the electricity to WAPDA according to the decided rate
s.
5.4.6 Sharing the capacity
The generation companies is provide 35000 million units and from GENCOS
17000 million units.
5.4.7 Not exact prices of all generation companies
All IPP charge different rates . there in no similarity in rate among I
PP.
5.4.8 By pass of merit order
This contract make through NATIONAL POWER CONTROL ORDER. A rate which di
fferent companies offer and WAPDA make the contract according to rate and prices
from the suitable companies. Fro example the requirement of power in Lahore but
cost rupees 6.50 per unit which can get from the nearest place of the Lahore or
 from Karachi is rupees 5 per unit of the cost but with conveyance cost is rupee
s 7 per unit. The suitable is first one because is its price rupees 6.5 per unit
and order is take place from this company by WAPDA.
5.4.9 Purpose of bypass of merit order
According to the bypass of merit order observing the demand and order fo
r generation companies
5.4.10 Cost break up
Fixed cost paid even units is closed. Fixed cost always charge on capaci
ty. According the WAPDA consider the total cost plus development cost.
5.4.11 Making the cost break up
In costing and planning department discuss and calculate the components
of costs which are included both fixed cost and variable cost through the ENERGY
PURCHASE PRICE and CAPACITY PURCHASE PRICE. Energy purchase price or EPP showin
g the variable cost and Capacity purchase price or CPP included on fixed cost. T
he variable cost showing the costs of fuel, gas, and other variable costs but th
e fixed costs are normally included on operating and maintenance costs.
5.4.12 Energy purchase price (EPP)
In which discuss the total variable cost which normally consists fuel co
st plus VOM.
• Variable operating maintenance cost (|VOM)
• Consumption of gas and fuel :
Consumption of gas and fuel in terms of rupees.
5.4.13 Admin cost
In admin cost included the salaries, wages, and other operating costs.
5.4.14 Capacity purchase prices (CPP)
CPP is covering the fixed cost of the departments and on the projects.

5.4.15 Esclateable
According to CPP in this department discuss and calculate the fixed oper
ating and maintenance cost and secondly discuss the returns.
5.4.16 Debit service liability (DSL)
In which discuss the principle amount and interest, secondly some units
of generations electricity seasonally and the fixed cost bear throughout the yea
r.
5.4.17 Contract from IPP
IPP provide electricity to the WAPDA, WAPDA making contract from these i
ndependent power producers for example contract to the company which charge vari
able cost from EPP on fuel base generation. So WAPDA agreement to this company a
nd decide the fuel price for example the cost is rupees 45000/3000 units. So the
price is rupees 15 per unit.
5.4.18 Indexation Factor
In which calculate and decide the rate according to the units such as 10
0million units in 1997, the cost is rupees 1 per unit. so the cost is also rupee
s 100million.
5.4.19 Fuel Indexation
It means charge the cost according to the fuel rate. The rate decide acc
ording to the current rate of fuel .for example the fuel indexation is 100millio
n units and the rate is rupees 15 per unit. The cost is rupees 1500million and t
he units are measure in maga watts. these are always calculate monthly.
5.4.20 According to CPP
In which for example 100million units and the reference price is rupees
10 per unit. so the cost is rupees 10000million.In that method the major thing
is factor of the rate of dollar. for example we assume the rate of dollar is eq
ual to rupees 80 and the cost is now rupees 80000million.
5.4.21 Line losses
According to the WAPDA there are different types of the line losses whic
h are underlying.
5.4.22 Transmission and distribution losses (TSD)
These losses are adjusted as the cost on the remaining units.
5.4.23 Busbar
The losses adjust according to the NATIONAL TRANSMISSION ANT DISPATCH CO
MPANY (NTDC) to grid estuations and drop electricity due to the flow of current.
5.4.24 Deduction term
The line losses are bear due to deduction of bills.
5.4.25 Defective term
In which meters are defectives then making estimated units according to
previous units consumption of last 11 months or currently corresponding month or
last year month estimated.
5.4.26 Critical path method
CPM is used in manufacturing process according to the time and motion st
udy. According to the CPM the work done accurately and timely so according to th
is costing and planning department is very important for their project and work
on them.
5.4.27 Structure of line losses
WAPDA (residual) out of 13 companies such as LESSCO, FASSCO, KESSCO, an
d other companies. Divide in different companies for identified their functions.
In 13 companies 9 companies are DISCO (distribution companies) and 4 companies
are GENCOS (making power through fuel).

5.5.1 GENRATION COMPANIES

1. WAPDA ( just HYDEL )
2. GENCOS
3. IPP
5.5.2 Pipe line of Electricity
5.5.3 Distribution margin
The margin which can get from deduction of cost in sale. This margin sho
wing that the excess amount which getting in according to costing and planning d
epartment through the deduction of all costs from sale.

5.5.4 Sale in price

Selling price = Distribution margin + cost
Distribution margin= Sale – cost
5.5.5 Establishment cost
• Operating and maintenance cost (O&M )
• Depreciation
• Return on assets (ROA )
• Return on assets ( DM )
5.5.6 Tariffs Partitions
NEPRA give prices according to the different types of prititions of tari
ffs which are followings.
5.5.7 Regulatory Tariff
NEPRA regulate the tariff then government of Pakistan (GOP) notify of th
is tariff. The other name of the regulatory tariff is determining tariff.

5.5.8 Notified Tariff

The notified tariff showing by the government which are different from t
he determine or regulatory tariff.
5.5.9 Consumer Tariff:
This type of tariff making according to the consumer. The first two tari
ffs may be same but the consumer tariff is different from these two.
5.5.10 Changes in Tariff / Unstructured Tariff
It means changes of prices of fuel or increases the prices of fuel which
are impact on the tariff prititions. This irrational price increase of fuel pri
ces so it is called unstructured tariff.
5.5.11 Structured Tariff
In which included structure changes or base changes because of returns.
After this structure changes this determination of prices.
• A1: Domestic tariff of household.
• A2: For commercial usage.
• B1,B2,B3: Industrial categories according to their usage of electricity
• C1: Big units of industrial
• D1,D2: Tube wells and agriculture tariff
• E1: Temporary connection which are domestic or construction
• E2: For commercial business
• F: seasonal connection such as rice and ice mill. In which concept of fix charg
es. In which according to 6 month included the normal tariff plus 20% increment
for seasonal working
• G: In which included the street lights (how many pools).
5.5.12 Average sale rate
Average sale rate = Total sale / Units (average tariff by NEPRA)
5.5.13 Revenue
Revenue = Units * Price
5.5.14 Subsidy
The subsidy is always providing by the government of Pakistan to WAPDA.
5.5.15 Gross subsidy
The subsidy which provides by the all tariff to each other.
5.5.16 Break up
This break up basis on tariff, product mix (use units in tariffs), proj
ection units.

5.5.17 Total budget

Total budget = Operating and maintenance budget + capital budget
5.5.18 Zero base budgeting
 Zero base budgeting justify why increase budget? What reasons and justif
y the all reasons.
5.5.19 National Electric Power Regulatory Authority (NEPRA)
• GENRATION
• DISTRIBUTION
5.5.20 Revenue
According to standard average produced units of 28000 million units. Rev
enue split in fixed and variable according to percentage. Variable cost / units
and fixed cost measure in mega watts. WAPDA HYDEL capacity 6444 mega watts.

CHAPTER 6
DIRECTOR OF WATER (WAPDA), WAPDA HOUSE LAHORE
The director of water control and discuss the varies functions which ar
e followings.
• Making dams
• Water reservoir
• Making canals
• Research laboratories
• Tube wells to needy areas
• Research projects
• Research on agriculture
• Research on earth
6.1 Dams
There are two major purposes of the making dams.
6.1.1 Water reservoir
The water reservoir making for the purpose of the storage of the water
not for the creation or generation of the power. In which showing the range of p
rojects and how to make the projects and whose are work on that projects . In
water reservoir to observe the organization, s capacity. The example of the rese
rvoir is CHASHMA RISORWIRE, the purpose of this project use for just agriculture
purpose. The generation of electricity at chashma barrage which is near from th
e chashma reservoir. The other purpose of this to increase the generation of fi
sh.
6.2 Canals
6.2.1 Kachi canal
A project for agriculture purpose start from the province of the SINDH a
nd after running throughout the province of the PUNJAB backed in the SINDH.
6.2.2 Thar canal
A big project which start with billions rupees in the province of the SI
NDH. It also running throughout the province of the PANJAB and use for agricultu
re purpose throughout KHUSHAB, BHAKAR, and JHANG and throughout PUNJAB.
6.2.3 Cost of thar canal
Cost of pc1 is rupees 32000 million and cost of pc 2 rupees 48000 millio
n.
6.3 Budgeting
In budgeting categorized because of different sources of funding accordi
ng to PUBLIC SECTOR DEVELOPMENT PROGRAM ( PSDP ) and other function involved in
it.
6.4 Public sector development program ( PSDP )
Funding from government of Pakistan according to federal government. In
October letter from government of budget circular which define for estimate expe
nditure of future one year and demands send to federal government according to p
rojects.
Write done all information and submit all proposal, this department rece
ived proposals from project and submit after checking to government. Checking ac
curacy record of usage of fund, caution calculation according to historical sess
ion, check trial balances and accumulated expenses calculate and less from pc 1
cost then available future calculation. Recognize the caution is accurate and lo
cate break up of finance of projects which included the fixed cost in following
ways
• Establishment charges for admin
• Calculate overhead charges which are 2.25%
• Interest during the construction (IDC).
• Consultant charges.
Add up all of them are called the total fixed cost and not compromise on
that cost, compulsory pay and assets locations and needs of new assets accordin
g to the requirements then calculate the expected valve of assets. The excess am
ount consume on project work and submit the proposal after the detail of all hea
ds expenses such as admin expenses detail or break ups. All expenses and where t
hese are consumed such as salaries, travelling allowances, daily allowances, pow
er free supply, building rent, rates and taxes, computer charges, stationary, a
dvertisement charges, etc.
e.g. the high increase of mangla dam cost is rupees 53000 million the budget is
rupees 11000 million, in which fixed cost is rupees 2057 million and cost on wo
rk rupees 9000 million.
6.5 Procedure
This department received the proposals from the projects and overseeing
them and estimates the suitable values, detail of contractors.
• Detail of contractors
• How many payments and future payments
• Work currently, previously, and future work
• Mention time period, if time over run then reasons of this and time extensions.
• All 42 projects discuss in this departments and the cost is rupees 101 billion d
eposits as a proposals to the federal government in this year
• Maintain books and send to GENERAL MANAGER OF FINANCE, MEMBER WATER, CHAIRMAN an
d back to this department then making the cover letter and send to the federal g
overnment. After this procedure decide the meetings which are followings.
6.6 Meetings
6.6.1 Priority meeting
After the all procedure the proposal send to the federal government whic
h making the deductions on that budget in priority meeting.
6.6.2 ANNUAL PLANT COORDINATION COMMITTEE ( APCC )
After the priority meeting the budget send to the APCC. The approve budg
et is just rupees 10 billion by APCC meeting in this year but the proposal which
this department send to priority meeting is rupees 101 billion, so the deductio
n by the APCC is rupees 91 billion. After extensions of that budget approved by
APCC is rupees 16 billion.
6.7 NATIONAL ECONOMIC CONCIL (NEC)
After the APCC the budget is finalize in the NEC. In that meeting foll0w
ing authorities involve and attend these meetings by the one or all of them.
• GM NORTH(KHAIBAR PAKHTOONKHAH)
• GM SOUTH
• GM(PUNJAB)
• GM(NOTTREN AREAS)
• CHAIRMAN(WAPDA)
In this meeting the parliament involves and approve and finalize the bu
dget then signature on that budget by the president. Now the current budget is a
pproving of rupees 16 billion.
After approve the final budget by the NEC the amount is give in the four
faces. If any problem inure discuss according to the cash plan not according to
the proposal. The relief is received in first quarter then to projects provide
monthly and progress reports of previous month from projects.
After quarter the federal government checking the work completed or not
first quarter. Discuss on the proposals and the review all quarters, after 6 mon
ths and after 1 year.
6.8.1 Function Director Of Water (WAPDA)
6.8.2 Cash plan:
In which showing that how many cash use in four quarters according to ap
proved the final budget by the NEC.
6.8.3 Work plan:
• It shows that how many work in 4 quarters, monthly, after 6 month and yearly.
• Central work development party (CWDP)
• If budget less then rupees 5 million then use in provincial works.
6.8.4 Token Provision
Token amount from the government against guarantee of projects. If situ
ation is unfavorable where project start, investment excess on project due to la
w & order situation. If saving i.e. rupees 5million then surrender to federal go
vernment or secondly. Transfer amount to needy project to just allocating projec
ts which allocate against token money.
6.8.5 Off Funds
It means making a case of needy project transfer amount from continual p
roject savings, approve by federal government or at same amount then use or fede
ral government order to give past of that amount any other project, the federal
government saying about it.

6.9 Cost of generation of electricity

PARTICULAR GENERATION(GWH) COST (RS. IN MILLLION)
HYDEL 28000 30000
THERMAL GENCOS 19000 125000
IPPS 36000 290000
TOTAL GENERATION 83000 445000
GENERATED/ PURCHASE 83000 units
UNIT LOST 17000 units
UNITS SOLD 66000 units
SALE VALUE Rupees 356000 million
PER UNIT SALE RATE Rupees 5.4 per unit

7.0 FOREIGN CURRENCY DEPARTMENT

7.1 Funds Allocate By the Authority
I visited in Foreign currency department in my 4 weak of Internship Mr S
hoail Ahmed Director of Foreign Currency give brief knowledge of this department
.WAPDA needs funds for its steadily expanding development programs and other fu
nctions in terms of its charter. The Authority is entitled to draw upon Authorit
y Fund, which consists of:
• Grants made by the Federal and Provincial Governments for specific jobs.
• Loans obtained from the Federal and Provincial Governments.
• Sale proceeds of WAPDA bonds issued under the authority of government.
• Sale of power.
• All other sums received by the Authority.
As a mean of self-sufficiency WAPDA is also required to finance a part o
f its power development programs through funds rise from revenue surplus of the
Electricity Operations Branch. This is termed as self-financing the quantum of w
hich is determined by the federal government.
• Loans obtained by the authority with the special or general sanction of the Gove
rnment.
• Foreign aids and loans obtained from the IBRD, ADB and other International lendi
ng
Now in current situation Foreign Currency department plays vital role be
cause many countries and different financial institutions give loan and aid for
finish current energy crises. Some important role of foreign currency department
given below

7.2 Objective of Foreign currency department

Foreign currency department working only for the development in WAPDA. T
he projects which have made or in working process depended on the foreign loan a
nd aid. So this department plays back born role in WAPDA power generation. This
department also provide valuable profit to government of Pakistan. Foreign excha
nge transactions developed from the growth of WAPDA activity among the help of d
ifferent countries. As business relations grew, the importance of monitoring the
value of foreign currency and trading it in the market facilitated a need to es
tablish foreign exchange departments WAPDA.
7.3 Core working
7.3.1 PC 2
In pc 2 WAPDA makes feasibility report how much capacity of new project
for which WAPDA want to take loan.
7.3.2 PC 1
In pc 1 WAPDA start working on the project with the amount of

7.4.1 Why WAPDA take loan

WPADA is a working all areas in Pakistan and it is working on non profit
bases. So without improving its capacity it can not meet the demand of general
public. And also it is single power Generation Company Which provide Electricity
directly to people.
7.4.2 Reasons
There are some reasons for which WAPDA take loan
• Install new power plants
• Decrease short fall
• Meet electricity requirement in future
• No alternative power production
• Demand increase every year
So WPADA takes loan for meet the demand of electricity which increases day by da
y.
7.5 Foreign Currency
In which currency WPADA takes loan it return loan in same currency. Norm
ally WAPDA takes loan in dollar currency.
Loan is combination of Principle amount + Interest

7.6 Agreement
 When WAPDA need loan it make agreement with money provider intuitions. T
his agreement includes following information like
• Rate of interest
• Place of payment
• Issue date
• Mode of payment
• loan return date
• Payment guarantee
• agreement signed
7.7 Foreign Loan
Foreign loan are those loan which is taken outside the boundary of count
ry. WPADA is a large organization and it is working on non profit bases so it is
very difficult for it to install new power plant which need billions of investm
ent and without improving its capacity it can not meet the demand of general pub
lic. So WPADA takes loan for meet the demand of electricity which increases day
by day.
7.8 Parties
These are three parties involve at the time of making agreement of takin
g loan. These parties are following
• Borrower WAPDA
• Guarantor Government or Commercial banks
• Lender Who provide loan
7.9 Types of Foreign Loan
There are two types of foreign loan
• Direct Loan
• Relending loan
7.10 Direct Loan
Direct loan WAPDA takes itself from commercial bank and other financial
institutions. Normally WAPDA itself give guarantee for loan but some time govern
ment can also give guarantee. WAPDA has responsibility to return loan to the loa
n provider.
7.11 Relending Loan
In relending loan government it self involve directly for providing loan
to WAPDA. Foreign country or financial intuition provide loan to government and
government reissue this loan to WAPDA. WAPDA receive loan indirectly. Governmen
t receive loan at low rate of interest like 2 or 3 percent but when government i
ssue this loan to WAPDA than government charge 15 percent rate of interest befor
e two years ago it is 17 percent but now due to finish power crises government r
educe it.
7.12 Rates
It is duty of WAPDA foreign currency department that fixed rate of loan
that it return according to KIBOR or LIBOR rate. If once rate id determine than
it can not be change till the project ended.
7.13 Loan provided Institution
Normally WAPDA takes loan for following financial intuition.
• World Bank
• Asian Development Bank
• IMF(International Monetary Fund)
• Kuwait fund
Some financial Institutions of France, United Kingdom, United State of America,
Sudia Arabia and Dubai
Currently loan Status
Intuited Amounts $
World Bank 54 Millions
Asian Development Bank 27 Millions
International Monetary Fund 13 Millions
Kawait Fund 8 Millions
Sudia Arabia Fund 31 Millions

Marine Insurance
8.1 Marine insurance procedure
• It has been observed that the detailed procedure as laid down in this office cir
cular no INS/RRK/F. claim /cir-/6877/6974 dated April 26, 1969 and no INS/gen/70
7/7587 dated 03-07-72 for reporting of marine claim is not being properly follow
ed. Any lapse is apt to result in the non acceptance of marine insurance claims
and this causes loss to the authority .in order to avoid loss and obtain expedit
ious settlement of these claims, the instruction contained in the above quoted c
irculars have been modified up to date in the from of precise required to be obs
erved in the a given situation as followed which may please be followed faithful
ly by all concerned.
• It may kindly be noted documentation of a claim is the primary responsibility of
the consignees and mere intimation of loss to the insurance department does not
absolve the consignee of their responsibility. The consignees are therefore, in
all circumstances responsible to finalize the claims as early as possible. They
should provide, complete document to the insurance department WAPDA, Lahore wit
hin a reasonable period i.e. 15 days after lodging the claim. However the period
in the respect of the Performa invoice and foreign supplier’s reply in the case o
f the receipt of short material should not exceed two months. If the documents a
re not received within above period, the insurance department will not be in a p
osition to pursue the claim with M/s. national Insurance Corporation.
• The marine policy protects the consignment right from the supplier warehouses an
ywhere in the world to port of shipment, marine voyage to the port in Pakistan a
nd thence by inland transit right up to job site. This period is maximum 90 days
after the arrival of the ship at the port of discharge and the policy immediate
ly expires on the arrival of goods at final destination whichever is earlier.
• At the time of issuance of the purchase order, a copy of the same should be prov
ided to the director insurance, WAPDA Lahore. he purchase order should clearly c
ontain instruction binding the suppliers to supply non negotiable document to th
e director insurance for taking the insurance cover of the material shipped by s
ea not exceeding Rs25,000.000/-(Rupees two crore fifty lac) a week before the sa
iling of the vessel . the shipment which exceeds Rs25,000,000/- but does not exc
eed Rs100,000,000/- is held covered if notice is received in writing at least 14
days before the actual date of the shipment . The limit of consignment in other
modes of transportation is as under.
• By post parcel Rs 5, 00,000/- (Rs. Five lacs) per carry.
• By rail/truck Rs 10, 00,000/- (Rs. Ten lacs) per carry.
• By air Rs 20, 00,000/- (Rs twenty lacs) per carry.
8.2 Damages at destinations
Goods which have reached the ultimate destination and kept in the story for eigh
t days without opening of the cases are with out survey will be held covered aga
inst undisclosed damages clause and additional premium will have to be paid at f
ollowing rates.
• up to first 2 months 5% per month of the full premium
This will be reckoned from excluding premium for war risk cover
the date of consignment
reach the job site.
• up to subsequent 6 months 10% per month of full premium
Excluding premium for war risk cover
• up to further one years 15% per month of full premium
excluding premium for war risk cover
8.3 Storage risk clause
n case of material does not reach the final destination with in 90 days
after the discharge of goods from the carrying vessel at the port of destination
i.e. Karachi will be held covered during temporary storage at the following rat
es:
• up to 30 days to be reckoned additional 10% of the full premium including pre
mium for war risk cover
• From date of expiry of 90 days are allowed
• For each additional 30 days additional 10% of the full premium including pre
mium for war risk cover.
As soon as the goods are received in store the receiving officer should
check the entire material with in 8 days of arrival of the goods. In case of los
s or damages consignee should immediately inform the director insurance WAPDA La
hore. In case of loss Particular of the consignment should be prepared and claim
with insurance department, WAPDA immediately on the receipt of goods other wise
the consignee will be responsible for loss. Where the value of the loss made bu
t not later than 8 of the arrival of goods at side to this office along whit the
following information/document:-
• purchase order number
• invoice number and date
• name of vessel
• bill lading number
• approximate amount of loss
• Whenever the material reached the destination, report of the loss with in 8 days
must also be lodged with the national insurance corporation, offices located at
Karachi, Quetta, Multan, Lahore, Faisalabad, Rawalpindi and Peshawar whichever
is nearer to the consignee with a copy to this office .
Full cooperation should be extended to the surveyors and this may be ins
ured that the is conducted properly by the surveyors, the attendance certificate
should not be issue to the surveyor until and unless complete survey is carried
out satisfactorily by the survey surveyors
8.4 Short and wrong material
It has been noticed that some times material is short and wrong shipped
by the foreigner supplier and consignee consider this lapse as the liability of
the insurers. It may be kept in mind that the insurers are not responsible for s
hort and wrong packing of the material. Therefore the consignees must immediatel
y refer such cases to the suppliers and finalize with them directly. Such types
of deficiency required to be detected with in 8 days of the receipt of goods. Wh
en such reports are logged with the suppliers it is required to be done under th
e intimation to the insurance department, WAPDA, enabling them to lodge first in
formation report with the insurers. However where it is proved that loss is not
on suppliers account and a certificate to this effect is obtained from the suppl
ier only then the matter may be taken up with the WAPDA Insurance Department who
in tern will lodge with the claims with the insurers on the basis of the first
information reports. This will only be practicable if the documents by the consi
gnees are provided to the insurance department WAPDA well in this time. The agen
cy commission of the local agent may not be paid in case of shortage until and u
nless the claim is decide by the insurance company and the reply of the foreign
suppliers regarding shortage in original is provided by the local agent. Where t
he surveyor has declared the loss due to the short packing the claim of short pa
cking does not lie against insurers and necessary steps may be taken for the rec
overy of the loss from the suppliers or recovered from the commission of his loc
al agent as the case may be.
8.5 Documentation
While analysis the cause of the delay in the acceptance of Marine claims
it has been noticed that claims are not drawn in acceptance with existing proce
dure are not supported with the essential documents. This is a very serious situ
ation as the acceptance or repudiation of the claims depends upon the supply
of following documents which should be furnished to the insurance department WAP
DA within 15 days after lodging the claim.
• Claim bill
• Performa invoice (for this time limit is 2 months)
• Survey report
• Original invoice
• Bill of lading
• Warehouse examination report
Estimate in case of repair. Three quotations of repairers may be atta
ched with the repair bill;
• Warehouse examination report and the survey report are the basic documents on wh
ich the claims are drawn. Claim bill should strictly be in accordance with the s
urvey reports as its acceptance depends on the remarks of the surveyors and rema
rks of the consignee in the warehouse examination report. Therefore while fillin
g up the warehouse examination report unwarranted remarks should not be given th
is may prejudice the claim. Similarly no statement should be made to the surveyo
r which may jeopardize the interest of WAPDA. In case the consignee consider tha
t the award given by the surveyor is not in accordance with the damages sustaine
d by the authority, it is their foremost duty to challenge the survey report wit
h facts and figures and substantiate their view point most judiciously and provi
de a copy to insurance department WAPDA, to enable them to take up the matter wi
th surveyor. But in no case the consignees should arrange the repair/replacement
in contradictions of the survey report until and unless the challenged survey r
eport have been got revised from surveyors in accordance with our genuine claims
.
• In case of repairs recommended by the surveyors the approval to carry out the re
pair may be obtained from the national insurance corporation, Lahore through ins
urance department, WAPDA, otherwise the claim will not be paid by the national i
nsurance corporation Lahore.
• It needs to be emphasized that timely submission of documents listed above is of
paramount importance for the settlement of claims and arrangement will be made
by the consignee to supply these documents for all new and pending claims.
• Consignees are requested to pay personal attention in the completion of new case
s so that claims may not return unsettled. If case which remain unsettled for mo
re than 3 months because of non supply of the Performa invoice and other essenti
al documents the responsibility will be that of consignees and the matter will b
e referred to the Authority.
8.6 Procedure for recovery of loss/damage of consignment
It has been observes that the marine insurance procedure circulate
d with this office No. SOM/M/GEN/79/7409 date: 01-07-1979 is the being follow in
letter and Spirit by the WAPDA Consignee causing un-due delay in lodging the cl
aim and ultimate loss to the Authority. For instance
• The loss is not reported within the stipulated period of 8 days and the insurers
have to charge the storage premium for the delayed period by way of deduction f
rom the claim as per terms of the insurance Policy.
• Clean receipts are given to the Carrier/Transporter by the consignee when the pa
ckages are in doubtful/damages condition thus the carriers escape their legal li
ability.
• The claim damages during transit are not lodged on the carrier through Chief Res
ident Representative Karachi in time. Thus the claim is accepted by the insurers
after deduction of share of the carrier.
• The claim bill rendered is not often supported with the Performa Invoice, carrie
r/Suppliers reply and other documents which results in-ordia=nate
• Delay in settlement of the claims.
• Shipping documents such as invoice, bill of lading and shop survey report and oc
ean freight are provided in installments. This further delays settlement of clai
m.
8.7 Settlements
In order to avoid loss to the authority and over-come the above situatio
n and for the quick settlement of the claim, the following steps may kindly be t
aken to safe guard the interest of the Authority:-
• The information of loss should be reported direct to the nearest office of Nati
onal insurance corporation indicated under para-14, with a copy to these office
within a period of 08 days.
• In case the carrier/transporter delivers the packages in damages condition, the
following remarks on the delivery challan/truck receipts should be mentioned
Conditions causing loss to the authority. Estimated loss will follow.”
The consignee should notify the estimated amount of lass/damage on recei
pts of the material in warehouse to the chief resident representative Karachi im
mediately so that necessary recovery may be effected from the carriers/transpor
ters bills. it may please be noted that I case of default the national insurance
corporation will deduct 20% amount for our claim. This does not only cause loss
to the authority but also invites audit objection.
• In case the material was found short/wrong the foreign suppliers should be asked
to make good the shortage or wrong shipment.
• The consignee while rendering the claim bill make kindly ensures that all necess
ary documents i.e. proforma invoice, carrier/transporter and suppliers reply acc
epting/declinging therir liabilities are attached.
• A complete set of shipping documents, suppliers invoice, packing list, bill of l
ading, ship survey report and ocean freight may please be supplied by the chief
resident representative Karachi/consignee to avoid un-necessary correspondence o
n the issue.

WAPDA EQUIPMENT PROTECTION SCHEME

9.1 Introduction to scheme
 “Self insurance scheme (sis)” was introduced in 1987 without any injection o
f equity by the WAPDA. Instead, the whole funding requirements are fulfilled thr
ough the contributions and profit on investments of weps surplus funds. It was r
estructured/renamed as “WAPDA equipments protection scheme (weps)” by the authority
in its meeting held on April 17, 2001 and notified vide office order no.ins/Weps
/3305-55 dated May 05, 2001. It is now converted into an independent accounting
unit w.e.f. July 01, 2005.
9.2 Objective
The main objective of WEPS is to protect the WAPDA equipment against the
risk of potential losses.
9.2.1 Equipments covered under the scheme
Presently the following equipments of WAPDA are covered under the scheme
.
• Electrical & mechanical equipments installed at all grid station of DISCOS and N
TDC.
• All power houses.
• WAPDA house building, lifts and AC plant.
• WAPDA printing press.
• Reclamation work station at Shalimar, Kot-lakhpat, Lahore, and Faisalabad.
• Research and test laboratory Faisalabad.
9.2.2 Risk covered under the scheme
• Fire loss.
• Mechanical damage.
9.2.3 Risk not covered under the scheme
• Earthquakes, volcanic eruption or other convulsion of nature.
• Typhoon, hurricane, tornado, cyclone or other atmospheric disturbance and flood.
• War invasion, act of foreign enemy, hostilities or war like operations. Civil wa
r
• Mutiny riots, military of popular rising insurrection, rebellion, revolution & s
tate of seize.
• Nuclear reaction, nuclear radiation or radioactive Contamination.
• Losses/damages occurred due to faulty operation and defective design/material of
unit.

WORK DONE BY ME
10.1 About Internship
I completed 6 week internship at WAPDA which is from 26.04.2010 to19.06
.2010 with break from 17.05.2010 to 30.05.2010. I hope that Internship experienc
e open doors for me of many opportunities because in this internship I learn a l
ot which give me help in my future. The employee of WAPDA is very corporative. T
he environment of the WAPDA is quite friendly. The staff is very efficient here
and deals the transactions of authority on daily basis by providing efficient an
d timely services. They want to change the current situation in country for the
progress of our mother land.
The internship give me a lot of knowledge and confidence in me. I sugges
t that other Numlians should do internship in WAPDA because it’s a large organizat
ion which work on non profit bases. Internship program is an important part to g
ive student an opportunity to have experience of practical field. Unless and unt
il the student experience the novelty of practical work, their knowledge of what
they study in theoretical courses remains incomplete. The most important point
is internship program is that the student should spend their time in a true mann
er and with the spirit to learn practical orientation of theoretical study of fr
amework.
I have learned in finance departments of WAPDA as under

10.2 Coordination department

Learning in Coordination department
10.2.1 Investment
The budgeted and consolidation department usually invest in the banking sector a
nd they invest for short or long period of time.
10.2.2 Book Keeping
Book keeping section maintains the record of the entire department, make financi
al statements and also compile their records.
• General Ledger Subsidiary Ledger
• Trial Balance
• Cash Book Entries
• Statement of Profit and Loss
• All the accounts are prepares manually but only Trial balance is prepares with t
he help of computer software.

10.3 HYDEL
10.3.1 Learning in HYDEL department
10.3.2 Measure the cost of HYDEL
The cost incure to produce the electricity measure in units and cost is
in rupees and per units.
This generation is measure in units and when combine calculate or measur
e use the term of million gaga watt .
10.3.3 Share and capacity of HYDEL throughout total generation
Before 10 years generation is 70% from HYDEL and 30% from thermal but now the 30
% from HYDEL and 70% from thermal. So the cost is very high because of more ther
mal generation. The capacity of HYDEL production is 27000 million units to 30000
million kilo watts (MKH) but still the total requirement is 90000 MKH.
10.3.4 Energy purchase price (EPP)
In which discuss the total variable cost which normally consists fuel cost plus
VOM.
Variable operating maintenance cost (VOM)
Consumption of gas and fuel
10.3.5 Tariffs partitions
NEPRA give prices according to the different types of partitions of tari
ffs which are followings.
10.3.6 Regulatory tariff
NEPRA regulate the tariff then government of Pakistan (GOP) notify of th
is tariff. The other name of the regulatory tariff is determining tariff.
10.3.7 Notified tariff
The notified tariff showing by the government which are different from t
he determine or regulatory tariff.
10.3.8 Budget section
 Prepare the estimated budget and revised budget.
10.3.9 Inter office transaction (IOT) section
Debit/Credit invoices are used for inter office transaction.

10.4 Director of water (WAPDA), WAPDA house Lahore

10.4.1 Learning in Director of water (WAPDA), WAPDA house Lahore
This department received the proposals from the projects and overseeing
them and estimates the suitable values, detail of contractors.
• Detail of contractors
• How many payments and future payments
• Work currently, previously, and future work
• Mention time period, if time over run then reasons of this and time extensions.
• All 42 projects discuss in this departments and the cost is rupees 101 billion d
eposits as a proposals to the federal government in this year
Maintain books and send to GENERAL MANAGER OF FINANCE, MEMBER WATER, CHA
IRMAN and back to this department then making the cover letter and send to the f
ederal government
10.4.2 Work plan:
It shows that how many work in 4 quarters, monthly, after 6 month and yearly
10.4.3 Cash plan
In which showing that how many cash use in four quarters according to approved t
he final budget by the NEC

10.5 Budget and consolidation department

Learning in Budget and consolidation department
• How to Dealing with the audit report/advances/draft pares pertaining to the comm
on services offices
• Consolidation of accounts of the offices/organization of the coordinating Issuin
g of funds to the common services offices
• Maintenance of authorities bank accounts and reconciliation with the banks
• The maintenance of the receivable /payable accounts with power wing, water wing
and the corporative entities under PEPCO and reconciliation of sub accounts with
these quarters.
• Maintenance of the accounts of employees’ medical benevolent fund
• The director finance (B&C) WAPDA works as member of WAPDA welfare fund.
• How Preparation /process of cases regarding grants of the long term advances an
d earmarking of funds for employees of coordinating wing of the WAPDA. Process o
f the cases of the purchase of the physical assets received from different offic
es by the scrutiny committee constituted under economy measures.

10.5 Foreign currency department

10.6.1Learning in Foreign currency department
10.6.2 Core working
Foreign currency department working only for the development in WAPDA. The proje
cts which have made or in working process depended on the foreign loan and aid.
So this department plays back born role in WAPDA power generation. This departme
nt also provide valuable profit to government of Pakistan.
10.6.3 PC 2
In pc 2 WAPDA makes feasibility report how much capacity of new project for whic
h WAPDA want to take loan.
10.6.4 PC 1
In pc 1 WAPDA start working on the project with the amount of project.
10.6.5 Foreign Currency loans
In which currency WPADA takes loan it return loan in same currency. Norm
ally WAPDA takes loan in dollar currency.
Loan is combination of Principle amount + Interest
10.6.6 Direct Loan
Direct loan WAPDA takes itself from commercial bank and other fi
nancial institutions. Normally WAPDA itself give guarantee for loan but some tim
e government can also give guarantee. WAPDA has responsibility to return loan to
the loan provider.
10.6.7 Relending Loan
n relending loan government it self involve directly for providing loan
to WAPDA. Foreign country or financial intuition provide loan to government and
government reissue this loan to WAPDA. WAPDA receive loan indirectly. Government
receive loan at low rate of interest like 2 or 3 percent but when government is
sue this loan to WAPDA than government charge 15 percent rate of interest before
two years ago it is 17 percent but now due to finish power crises government re
duce it.
10.6.8 Return Rates
It is duty of WAPDA foreign currency department that fixed rate of loan
that it return according to KIBOR or LIBOR rate. If once rate id determine than
it cannot be change till the project ended
Currently loan Status
Intuited Amounts $
World Bank 54 Millions
Asian Development Bank 27 Millions
International Monetary Fund 13 Millions
Kawait Fund 8 Millions
Sudia Arabia Fund 31 Millions

10.7 Marine insurance department

10.7.1 Learning in Marine insurance department
10.7.2 Marine insurance procedure
The marine policy protects the consignment right from the supplier wareh
ouses anywhere in the world to port of shipment, marine voyage to the port in Pa
kistan and thence by inland transit right up to job site.
10.7.3 Liabilities of the career , bailer or third party
On arrival of the port of the discharge i.e. Karachi, while applying for
a delivery order, original bill of lading dully attested by the consignee shoul
d be provided to the port authorities.
10.7.4 Storage risk clause
In case of material does not reach the final destination within 90 days
after the discharge of goods from the carrying vessel at the port of destination
i.e. Karachi will be held covered during temporary storage at different rates.

10.8 WAPDA equipment protection scheme department

10.8.1 Equipments covered under the scheme
of WAPDA are covered under the scheme.
• Electrical & mechanical equipments installed at all grid station of DISCOS and N
TDC.
• All power houses.
• WAPDA house building, lifts and AC plant.
• WAPDA printing press.
• Reclamation work station at Shalimar, Kot-lakhpat, Lahore, and Faisalabad.
• Research and test laboratory Faisalabad.
10.8.2 Risk covered under the scheme
• Fire loss.
• Mechanical damage.
10.8.3 Risk not covered under the scheme
• Earthquakes, volcanic eruption or other convulsion of nature.
• Typhoon, hurricane, tornado, cyclone or other atmospheric disturbance and flood.
• War invasion, act of foreign enemy, hostilities or war like operations. Civil wa
r
• Mutiny riots, military of popular rising insurrection, rebellion, revolution & s
tate of seize.
• Nuclear reaction, nuclear radiation or radioactive Contamination.
Losses/damages occurred due to faulty operation and defective design/material of
unit.
Working Experience
Internship is one of the crucial and difficult decisions of the career o
f a student. The internship acts as a passage towards the achievement of future
job. It not only encourages the student to enter the social circle of practical
life but also motivates him or her towards implementation of the knowledge gaine
d from the studies. It enlightens the thinking pattern of the students’ mind and s
hows him or her small glimpse of the practical work environment. The student is
thus able to understand the working conditions and the implications present in t
he environment about which he or she is unaware. During the internship period a
student gets the chance to meet the highly skilled and professional people relat
ed to his area of interest as well as other people. This interaction gives him o
r her handful experience about the present systems being followed in the market.
He is able to learn certain key and fundamental functions that are neither to b
e found in any university nor in books.
The student who is under going the process of learning in any organizati
on gets the opportunity to observe the functioning of that organization. He is a
ble to see how do organizational goals are achieved with the contribution of a l
arge number of employees working collectively. It is also to see how the tasks,
duties are and responsibilities have been distributed to various people and how
their individual work is reconciled and presented to the management for decision
making and to the general public as one unit.

11.1 Learning / Achievements

In period of internship I got the chance to learn a great deal about the
various procedures and regulations observed at WAPDA. Some were good and some n
eed to be improved in my opinion.
11.2 Positive Points
• Government support
• Vertically integrated utility
• Restructuring of Pakistan power sector
• The internee must not take the task he cannot perform in the efficient manner be
cause that will bring a bad name on his part.
• I got to chance to observe how employees behave in organizational culture.
• The process of segmentation of large tasks in big organizations helps the employ
ees perform the tasks in a better and effective manner.
• It is also important for the internees to not to be over efficient because the p
eople already working in the organization are more skilled and professional than
the internee.
• It is essential that the employee must be honest with his work and duties that w
ere assigned to him because honesty will lead that organization to glory.
• The top priority for the organization is the fulfillment of its goals so that it
can maintain the position in the market.
• By working in large organizations I got the chance to learn the professional nor
ms and behaviors observed in WAPDA.
• I have acquired the ability to adapt myself with the changing taking place in th
e environment.
• By observing the organizational rules and regulations of WAPDA I have got famili
arity with the practical environment.
• I have been involved in various activities that have helped me to acquire coordi
nation with other staff members of the department.
• The internee must have good communication skill because he has to provide his su
pervisor complete information.
• The internee must be able to understand the working of the system quickly as the
staff expect the internee to do so as they avoid repeating the instructions.
• Senior staff members are mentors so the internee must follow their instructions
and always welcome their advice.
• The internee also needs to focus on the performance of the tasks assigned to him
/her and not poke his nose in others affairs.
• The behavior and attitude of senior staff with internee good and should be appra
ised.
• I learnt that employees work better in friendly and co-operative atmosphere.
• In my observation every staff member provides me guideline to better understand
the organization culture and Policies.

11.3 Negatives Points

When the internee goes to the practical work place from the university a
rea, he seeks proper guidelines from the senior staff that is not provided to th
em.
• Limited Geographic Market
• Reduction In Net Electrical Output And Profit Margin
• Mangla Dam Issue
• Bad policies
• In an office environment, there is a personal bias among employees and that goes
on for years.
• There is communication gap among the employees of the organization.
• There is lack of positive synergy among the employees that prevents them to work
collectively and achieve excellence.
• Employees of the organization keep their personal goals ahead of the organizatio
nal goals.
• The employees tend to protect each other when some one breaks the organizational
rules.
• Most of the employees of organization are not technology oriented and they avoid
using latest technology.

SWOT
Strengths
• Rising Electricity Demand
• Development Projects
• WAPDA has monopoly in market
• Company has huge amount of assets
• Security Systems
• Transportation systems
• WAPDA provide large number of facilities, allowances and benefits to its employe
es and these are sources of motivation for workers.
• Most are employees are satisfied with there jobs because work assigned to them i
s interesting and work load is low as compared to other business organizations e
ach employee is assigned with the work he can perform with perfection.
• WAPDA do time to monitoring over its wings to increase efficiency.
• Pensions systems

Weakness
• Political Instability
• Scarcity Of Resources
• All though there are competent and high qualified workers but a large part of em
ployees are incompetent and low qualified as compared to their job specification
matriculates and intermediate are working at the job specification of MBAs or o
ther master degree holders. That’s why qualitative performance of these workers is
limited.
• In spite of presence of technology many jobs are done manually.
• The controls are heads or not effected.
• Political powers in recruiting due to which some incompetent candidates were rec
ruited.
• Over employees and low productivity.
• Communication systems among departments are not sufficient.
• Lack of loyalty.
• Consistency and regulatory in staff.
• Dependency on the power production and distribution companies.
• Increase In demand day by day -

Opportunities
• WAPDA is able to produce more then 80000 MGW electricity through different dams
.
• WAPDA has opportunity rises dams height Manglla and remove mud in tarbilla dam w
hich can increase Electricity generation capacity.
• Gomal zam dam project
• Miran dam project
• Mangla dam raising
• Canal system
• Rehabilitation of transmission line to prevent from line losses
• Time execution of development projects
• Information technology
• Re generate electricity through Tarbilla dam.

Threats
• Politics in employees and labor unions.
• Political instability can effect to development projects.
• Slow developments process.
• Change in government policies.
• Terrorism in our county is biggest threat to authority.
• Uncertain economic condition.
• Electricity demand is increasing day by day due to this main grid station goes t
o trip.
• Bad reputation.

RECOMMENDATIONS
13.0 Recommendations
Here are some weak areas which I perceived during my internship in WAPDA
and some recommendations are given as under:
13.1 Investment
Invest in the Kala Baag Dam and Basha Dam Making.
13.2 Line losses
Line losses should be decreased to 3% currently it is 20% but it should
more decrease as soon as possible back its increase expenses of WAPDA.
13.3 Electricity saver appliances
Electricity saver appliances should be introduced in the country

13.4 Media Campaign

A strong media campaign should also be introduced on TV. Channels to cre
ate awareness in the society to decrease energy consumption.
13.5 Privatization
WAPDA should not privatize all its companies. In my opinion if these com
panies will work under one authority it will be better for economy as well as fo
r WAPDA too.
13.6 Training and development.
It is correct that “if you are not going forwards, you are in fact going b
ackwards”. Current employees have skill deficiencies. Increased efficiency results
in financial gain. It is very true “if you think training is expensive try ignora
nce”. Attitude, skills, and knowledge can be enhanced through effective training.
The current status of training in WAPDA requires improvement & changes. The foll
owing subjects may also be included by Staff College in their courses as under:
Investment and portfolio management, corporate finance, MIS (accounting
software) Leadership, Time management, Change management, Organizational behavio
r, Quality management, Motivation, Corporate culture.

13.7 Long term debts

 This increase in Long-Term debts is not good indication for WAPDA becaus
e due to this increase WAPDA has to pay more interest as shown in profit and los
s Account of Power Wing of WAPDA. So, WAPDA should reduce these long term debts,
if it wants to earn more profit.
13.8 Financial charges
Increase in financial charges has resulted in the reduction of profit of
WAPDA. In order to earn more profit WAPDA should control these financial Charge
s rather should reduce these financial charges
13.9 Investment in other business
WAPDA should also invest in some profitable business like share of diffe
rent companies
except the sale of electricity.
13.10 Free in making decision
WAPDA is an independent organization so it should be independent in deci
sion making. If the WAPDA is free in decision making, it will reduce its extra c
ost such as loyalty cost, IPPC payments, etc.
13.11 Fair payment of electricity bills
It is well known that big industrialist and land lords especially of out
tribal areas do not make fair payment of electricity bills. Due to this unfair
payment WAPDA as well as economy suffers. So these industrialists and landlords
should be completed by the state to pays their electricity bill fairly.
13.12 Contracts with IPP
The contracts of IPP most be eliminated as soon as possible because they
sell electricity to WAPDA sell electricity to consumers at considerable low rat
es, due to which not only WAPDA but economy also suffers.
13.13 Blockade of promotions.
Employee’s motivation and productivity increases with opportunities to gro
w. It develops a strong psychological contract and makes an employee competitive
from opportunities within organization. In WAPDA, at this stage there is severe
blockade of promotions due to which there is resentment and distrust amongst ca
dres. Inefficiency is another effect of delayed promotions apart from brain drai
n. So promotion should be in time as per criteria.

13.14 Job rotation

Most of employees are stick to one set only, which result that they beco
me master of one particular job and lose their grip on other operations. So all
employees should have regular job rotation.
13.15 Courses
Refresher Courses for the staff are most important in any international
organization foreign experts can also be called for this purpose
13.16 Working Environment
Working environment, equipment, furniture and staff dressing should be a
ccording to the modern style.
13.17 Generation of electricity from coal
Generation of electricity from coal is another source of generation of e
lectricity. Generation from coal is cheaper from hydel.
13.18 Control of line losses
The line losses can be controlled by regular check on lines, meters of c
ommercial as well as for industrial sector. It will reduce WAPDA cost and will
increase its profit.
Recommendation for the NUML:
While studying in NUML, I have analyzed some problem. Keeping in views t
hose problems following are my recommendations:
• The institute also should arrange the field tours for its students to enhance an
d give the market exposures.
• The management of this prestigious institute should introduce the training progr
ams among the departments i.e. IAS & IBA same as the UMT does with the IBA for t
he promotion of students.
• This institute also should organize the seminars with the cooperation of industr
ies like with Chamber of Commerce and Supply Chain Group of Pakistan that assis
t its Students and the market will know its students.

CONCLUSION
After completing my internship in WAPDA, I have concluded the company as under:
• Rise in the oil prices pushing electricity tariff very high. As a result, manufa
cturing costs and inflation are at the rising trend, export competitiveness is e
roded and the pressure on the balance of payments is increasing. These factors a
dversely affect the present growth trajectory of the economy.
• AL though there are competent and high qualified workers but a large part of emp
loyees are incompetent and low qualified as compared to their job specification
matriculates and intermediate are working at the job specification of MBAs or ot
her master degree holders. That’s why qualitative performance of these workers is
limited.
• The country also needs to look at other alternative sources of energy.
• In Pakistan the current energy crisis stems from the decline in hydro sources
of energy and over reliance on the expansive source of electricity. Presently,
oil-based thermal plants accounts for 68% of generating capacity,
hydroelectric plants for 30% and nuclear plants for only 2% .This has led to a h
uge generation costs, which in turn adversely affect the
economy over the past eight years.
• WAPDA has monopoly in market.
• The government needs to focus on the proper development of human resources to ca
ter to the energy sector.
• WAPDA had friendly atmosphere with its employees.
• WAPDA has the largest operational infrastructure and this type of structure exis
t only in 7 to 8 countries in the world.
• WAPDA has large number of departments and each department has different section
but not proper coordination between them but not proper coordination between the
m.
• Every task is accomplished after long process, because each file moves verticall
y, goes from top to bottom and then bottom to top.
• Company’s staff is hard working and well trained comparatively.
• The process of maintaining and developing transmission lines is very slow.
• Financial policies are well placed in books but not being practiced fully.
• Company is required to acquire the latest technologies to install in grid statio
ns to prevent from line losses and fire in case of over loading on transmission
lines.
• To maintain a useful survival in the face of global and local challenges WAPDA n
eeds to adopt professionalism and develop aggressive policy to retain a highly m
otivated work force by offering attractive financial and career development ince
ntives.
• The long execution times, poor project management skills and consistent delays a
nd high transmission and distribution losses have thrown the country into a cris
is. If timely action is not taken, this will seriously.
• The government needs to take a holistic approach towards the sector in order to
cut the power deficit.

ABBRIVIATIONS
• ABL Allied Bank Limited
• ADB Asian Development Bank
• APCC Annual plant coordination committee
• B/O Budget & Accounts Officer
• BPS Basic Pay Scale
• CBR Central Board of Revenue
• CPP Captive Power Producer
• CPP Cost and capacity purchase price
• CPPA Central Power Purchasing Agency
• CRPEA Contract registrar and power exchange administrator
• CWDP Central work development party
• D.G Director general
• DISCOS Distribution Company
• DSL Debit service liablity
• ECC Economic Coordination Committee
• ERP Enterprise recourse planning
• FESCO Faisalabad Electric Supply Company
• GENCOS Generation Company
• GESCO Gujranwala Electric Supply Company
• GFAIO Gross fixed assets in operations
• GOP Government of Pakistan
• GSC Grid System Construction
• GSO Grid System Operation
• HBL Habib Bank Limited
• HESCO Haidarabad Electric Supply Company
• HSD High speed diesel
• IBP Indus Basin Projects
• IDC Interest during the construction
• IESCO Islamabad Electric Supply Company
• IPPS Independent Power Producers
• IOT Inter office transaction
• IMF International monetary fund
• JBIC Japan Bank for International Cooperation
• KESC Karachi Electric Supply Corporation
• KV Kilovolt; it is the amount of voltage required to run the motor.
• KVA Kilovolt Ampere; it is the product of current and voltage requir
ed to run the motor or a device.
• KW Kilowatt; the kilowatt is equal to one thousand watts.
• KWH Kilowatt Hour
• L & CA Legal and Corporate Accounts
• LESCO Lahore Electric Supply Company
• MCB Muslim Commercial Bank Limited
• MESCO Multan Electric Supply Company
• MW Megawatt; the megawatt is equal to one million watts.
• NAB National Accountability Bureau
• NEC National economic council
• NEPRA National Electric Power Regulatory Authority
• NFIO Net fixed assets in operations
• NPCC National Power Control Company
• NSRO Next Senior Reporting Officer
• NTDC National Transmission and Dispatch Company
• O&M Operating and maintenance cost
• O/O Office Order
• PC Project cost
• PEPCO Pakistan Electric Power Company
• PESCO Peshawar Electric Supply Company
• RFO Residue furness oil
• SOP Standard Operating Procedure
• T&D Transmission and distribution losses
• UBL United Bank Limited
• VOM Variable operating maintenance cost
• W Watt; One watt is equal to 1 joule (J) of energy per second.
• WAPDA Water and Power Development Authority
• WEPS WAPDA equipments protection scheme
• WPPO WAPDA Power Privatization Organization

REFERENCES
Following are the references through which I have obtained the data about the au
thority during my internship in WAPDA as under:
• Director Muhammad Farooq Memon(Finance)
• Deputy Director Muhammad Razzaq Gill(EST& Admin)
• Director Muhammad Arshad (B&C)
• Assistant Director Naveed Querashi (B&C)
• Director Najeeb Tariq (Pension & insurance)
• Budget and account officer Sohail Ahamed (Pension & insurance)
• Assistant Director Muhammad Nadeem (Finance water)
• Assistant Director Mjahid Hussain( Hydel)
• Budget and account officer Waqas Ahmed( Hydel)
• Websites:
o www.wapda.gov.pk/
o www.ntdc.com.pk/
o www.pepco.gov.pk/

APPENDICIES
Internship Completion Certificate
Internship Evaluation Performa
CHAPTER NO 17

17.0 APPENDICIES