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 Sector Projects in Pakistan. WAPDA operates through- Power wing and Water wing, It is engaged in the generation, transmission and distribution of power. In addition, it also manages irrigation, water supply and drainage system in the country. Further, it is also responsible for prevention of water logging and reclamation of waterlogged and saline lands. Its responsibilities also include flood management and inland navigation. WAPDA was created as a SemiAutonomous Body in 1958. The company is headquartered in Lahore, Pakistan.

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The Pakistan Water and Power Development Authority (WAPDA) was established through an act of parliament in February 1958 for integrated and rapid development and maintenance of water and power resources of the Country. This includes controlling 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 investigation, 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 thermal power generation projects was shifted to the private sector. Similarly, as a result of restructuring of the Power Wing, the utility part was corporatized into independent companies. This shift from convergence to divergence gave birth to 13 entities to operate in different zones. These are National Transmission and 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 go privatized as planned. The residual Power Wing is therefore now responsible for major hydro-electric power projects and schemes in operation.

1.2 Water Vision 2025
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WAPDA has formulated a comprehensive $25–33 billion National Water Resource and Hydropower Development Program me, entitled Water Vision 2025. The Water Vision 2025 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 growing population. Five massive hydropower projects have been announced by the President of Pakistan; these are to be completed by 2016, with a generation capacity 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 1993 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 Canal (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 Phase I projects will be $2.467 billion with a construction period of five years. Under Phase II, Hingol Dam, Balochistan Dam and Satpara Dam (Northern Areas), Chashma 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, Gajnai and Sehwan Barrage (Sindh) will be completed in 3–6 years, except Basha Dam, which will take 8–10 years for its completion. The total cost of Phase II projects will be $8.94 billion. These 11 projects will have a storage capacity of 12.79 million acre-feet, would generate over 3362 mW of power, and would irrigate 1.4 million hectares of land. Under Phase III, Yugo Dam, Skardu Dam, Dhok Dam, Rohtas Dam, Naulang Dam and Khadji Dam will be completed.

1.3 Mission Statement
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Our mission is to bring the assurance of energy to our customers, with world class quality and commitment for satisfaction as we continue in our quest for excellence.

1.4 PROGRESS OF POWER WING IN CURRENT FINANCIAL YEAR 2009/2010
During the year, construction of 267.77 Km long transmission lines and 65 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 length of transmission lines are presently to transmit about 57,157 GWH electricity annually, linking various power- station to load centers through its four regions i.e. Lahore, Islamabad, Multan and Hyderabad. These regions are availing technical expertise from Technical Services Group (TSG) and System Protection. The Transformer Reclamation Workshop is also part of GSO

NUMBER OF GRID STATION

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Number of GRID STATION 12 10 68 135

Region

KV

Lahore Islamabad Multan Hyderabad

500 220 132 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 replacement works for management of river water and irrigation system. Since then it has been engaged in building
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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, Central, South and Northern Areas zones. These zones cover, in general, North West Frontier Province (NWFP), Punjab, Sindh and Balochistan and Northern Areas respectively. The activity of water wing involves execution of surface and sub-surface water development and drainageSalinity Control and Reclamation Projects (SCARPs). 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 Chief Engineers in the field of hydro-electric power, coordination and WAPDA Power Privatization Organization. WAPDA has an elaborate setup headed by a General Manager 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 of Finance, Internal Audit and Budget and Accounts headed by Chief Auditor (Internal 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 responsibility 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.

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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 giving 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 their families WAPDA has set up an elaborate network of 14 hospitals land 39 dispensaries located at
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different stations and cities in the country in addition to WAPDA central hospital at Lahore that is the headquarters of the organization. WAPDA hospital complex provides comprehensive medical care and treatment, both for in-door and out-door patients, with specialized attention and treatment in almost all- medical disciplines. The smaller medical units look after the requirement at various WAPDA projects and other towns where WAPDA officers have large concentration. All WAPDA hospitals and dispensaries attend to over 1.60 million patients during report year in their out-door departments while their annual emergency and casualties attendance exceeds 0.101 million. Besides the medical services include admission for in-door treatment to over 19,498 patients during report both in WAPDA and non-WAPDA hospitals. Over 40526 surgical operations are performed in WAPDA hospitals in additions to specialized treatment for cardiac disease and other serious and other serious surgical medical cases.

1.9.2 Education
In order to promote and maintain education in various WAPDA colonies and projects, WAPDA has set up 45 educational institutions which provide education not only to children of employees stationed in the respective areas but also to the adjacent non- WAPDA population. These institutions have performed exceedingly well with some remarkable results.

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

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 arrangements for management and technical training of the officers and staff. Training activities are conducted in WAPDA to impart basic and advance knowledge to all officers and staff during different stages of their career. A number of training institutes are functioning at various places.
• •

WAPDA Staff College, Islamabad. WAPDA Engineering Academy, Faisalabad

1.10 Thermal Power
As per Government of Pakistan policy all thermal power generation has been 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
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Sindh and Northern Power Generation Company Limited (GENCO-3) head quarters at Muzaffargarh and Lakhra Power Generation Company Limited (GENCO-IV) at Khanote (Sindh) have been formed and registered. Functioning of GENCOs has commenced.

• • • •

Jamshoro Power Generation Company Limited Central Power Generation Company Limited Northern Power Generation Company Limited Lakhra Power Generation Company Limited

GENCO - I GENCO - II GENCO - III 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 Balochistan 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.

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Structural formation of all four GENCOs is as under JPCL (GENCO-1) TPS Jamshoro GTPS Kotri CPGCL (GENCO-2) TPS Guddu TPS Quetta NPGCL (GENCO-3) TPS Muzaffargarh NGPS Multan GTPS Faisalabad GTPS Shahdara CGTM W/Shop F/Abad LPGCL (GENCO-4) FBC Lakhra -

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 Qadirpur project.

Mar 26, 2010

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OFID To Extend Loan Worth $31.10 Million For Neelum-Jhelum Hydropower Plant 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 focusing only on Hydel Development and Water Sector Projects to support the national economy and poverty alleviation through improved Hydel-Thermal mix of Power Generation, provision of electricity at affordable price and most pertinently perspective planning and timely execution of Projects to meet the Water and Power demand 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)
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Hydel GENCOs IPPs Nuclear IPP (Chashnup) Rental Total

6444 MW 4675 MW 5772 MW (including 30 MW Hydel) 325 MW 150 MW 17366 MW

2.0 CUSTOMER SERVICES
Respective distribution companies under PEPCO are responsible to deal with all matters of their electricity consumers as per their procedures.
• • • • •

LAHORE ELECTRIC SUPPLY COMPANY LIMITED GUJRANWALA ELECTRIC POWER COMPANY FAISALABAD ELECTRIC SUPPLY COMPANY ISLAMABAD ELECTRIC SUPPLY COMPANY MULTAN ELECTRIC POWER COMPANY

(LESCO) (GEPCO) (FESCO) (IESCO) (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

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unified and coordinated development of the water and power 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 privatization and from integration to disintegration. To keep pace with this change, the Government of Pakistan approved a Strategic Plan in 1994 as a consequence of which the power wing of WAPDA has been unbundled into 12 Companies for generation, transmission and distribution of electricity. 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 jurisdiction and network of former Area Electricity Board, which was created in early eighties. It encompassed the areas of existing Districts of Gjranwala, Hafizabad, Sialkot, Narowal, Gujrat and Mandi Bahauddin.GEPCO was incorporated on 25th April, 1998 and obtained certificate for commencement of business on 5th June, 1998.Management and

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Administration is entrusted to a Board of Directors. We have about 2,461,729 connections, Average monthly collection for the year 2009-10 is approximately 3961 million Rupees.

2.1.4 FAISALABAD ELECTRIC SUPPLY COMPANY (FESCO)
FESCO Distributes and supplies electricity to about 2.88 million customers within its territory with a population over 26.5 million under a Distribution License granted by National Electric Power Regulatory Authority (NEPRA) pursuant to the Regulation of Generation, Transmission and Distribution of Electric Power Act, 1997 (NEPRA Act). Geographical service area of FESCO comprises Faisalabad, Sargodha, Mianwali, Khushab, Jhang, Bhakker, T.T Singh and Chiniot.

2.1.5 ISLAMABAD ECTRIC SUPPLY COMPANY (IESCO)
Area Electricity Board (AEB) Islamabad was one of the eight AEB's constituted 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 Transmission 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 Distribution Company of WAPDA. It's area of operation is from Sahiwal to Sadiqabad, Bahawalnager to Bahawalpur and Tounsa Sharif to Rajanpur and bordering with Sind, Balochistan and NWFP Map.

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The Charter of MEPCO is to provide the reliability, quality and safety of electric power supply to the consumers in its Jurisdiction. MEPCO is envisaged for the creation of the resources and engineering plans for additions, renovation and augmentation of the distribution system in order to achieve charter. MEPCO is putting efforts to make it a viable and progressive utility to take care of consumer's power demand.

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 delivery through 500 kV, 220 kV & 132kV Network.

2.2.1 System Operator
For secure, safe and reliable operation, control and generation facilities.

2.2.2 Transmission Network Operator
For Operation & Maintenance, Planning, Design and expansion of the 500 kV 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 consumption. Twelve years later, when WAPDA was created in 1959, the generation capacity had increased to 119 MW. By that
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time country had entered the phase of development, which required a dependable and sold infrastructure, electricity being its most significant part. The task of power dev elopement was undertaken by WAPDA for executing a number of Hydel and thermal generation projects, a matching transmission network and a distribution system, which could sustain the load of rapidly increasing demand of electricity. The effects of WAPDA’s professional approach to find the solution to multifarious problems did not take long to show. After first five years of its operation 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 consumers in 1959 to 688 thousand in 1965, as many as 609 villages had electricity supplied 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, mechanized agriculture started, industrialization picked up and general living standards 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 sources after completion of Chashma Hydro Power Plant plus generation from independent 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 deregulation, privatization and transformation of its public sector entities (PSEs), including its two major power utilities, Water and Power Development Authority (WAPDA) and Karachi Electric Supply Corporation (KESC). WAPDA was established in 1958 as a semi-autonomous agency to coordinate the development of Pakistan's water and power resources.

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NTDC previously was the part of Water and Power Development Authority (WAPDA). It was known as Transmission and Grid Station. In December 1998, the WAPDA 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 Government of Pakistan vested with the following corporate objectives

The corporatization and commercialization of WAPDA’s assets block in generation, transmission 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 regulate the unbundled Power Sector in order to promote competitive power market to ensure reliable

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power supply at affordable rates to millions of electricity customers 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 execution, 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 replacement works for management of river water and irrigation system. The life saving action for Pakistan’s agriculture has been WAPDA’s role in the field of water logging and salinity. During past four decades WAPDA has planned and executed 60 scraps at a total cost of Rs.37.8 billion to cover an area of 19 million acres of affected land for putting it back into production.

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2.9 Division of WAPDA

WAPDA

RESIDUAL PEPCO WAPDANational University Of Modern Languages | Final Report on WAPDA 1. WAT DAMS 2. HYDL PWR GENCO-1 (Kotri) GENCOS

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NTDC

DISCOS

WAPDA

RESIDUAL WAPDA

PEPCO GENCO-1 (Kotri) GENCOS

1. WAT DAMS 2. HYDL PWR

NTDC

DISCOS

GENCO-3 (Muz. Gh.) GENCO-2 (Guddu)

1. IESCO

2. GESCO

GENCO-3 (Muzafargarh)

3. LESCO

GENCO-4 (Lakhra)

4. MESCO

5. HESCO

6. FESCO

7. QESCO

8. PESCO

9. TESCO

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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 wires in preinstalled electrified areas and those areas to which Discos want to electrify. So we should have knowledge about all stakeholders which are generating and distributing electricity in Pakistan like what are their major functions, projects, and their locations in order to make budgets through which NTDC will earn revenue in future.

2.10 Major Stakeholders Of WAPDA
Now we discuss all the companies which are the major stakeholders of WAPDA. 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)

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2.12 WAPDA Residual Projects & Functions 2.12.1 Water Dam
To Constructing ,repairing & maintaining of dams is the major function of 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 capacity 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 Hydel Power Projects of Small and Medium capacities were commissioned including the 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 boundaries 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 construction of replacement works called Indus Basin Projects (IBP) to compensate for perpetual loss of Eastern rivers' water. The works proposed under the Treaty included 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 different phases.

WAPDA RESOURCES
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3.1 Dames
There are many dams under WAPDA control. Some important names of these dams are given below.

3.1.1 Tarbilla Dam

3.1.2Cashma Power Plant

3.1.3 Mangla Dam

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3.1.4 Warsak Dam

3.2 Hydel Generation Capacity
The total capacity of 13 No., Hydel Stations as of today is 6443.56 ~ 6444 MW which is 37.10% of total installed generation capacity of WAPDA. During 2007~2008, aggregate energy sharing during the year was 33.32%. The Hydel Generation 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.

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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. Tarbela 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 Capability 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 when 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 extremities 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 the companies’ transition process from WAPDA. No doubt all the companies are independent 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 been restructured and four corporatized companies namely Jamshoro Power Generation Company
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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 (GENCO-IV) at Khanote (Sindh) have been formed and registered. Functioning of GENCOs 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) installed at different Power Stations located in Sindh, Punjab and Balochistan 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.
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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 the country. This adversely affected the national economy. It was not possible for 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 consolidated 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 development. The said Policy offered a fix level zed tariff of US$ 5.57 / kWh to the prospective 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 independent power producers (IPPs) to bring capacity on line as
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quickly as possible at predetermined power purchase prices. The government guaranteed implementation, fuel supply, and power purchase. (By 2001, the private sector’s share of 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 private sector contracted in 1992 started commercial operations in March 1997. Shortly after commissioning disputes arose between GOP / WAPDA and HUBCO on tariff and other issues. After protracted negotiations, these were resolved through Settlement Agreement of December 2000 signed by the GOP, WAPDA and HUBCO. This resulted in a lower tariff entailing a saving of about 3 billion dollars 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 incorporating it under the name of KAPCO and selling its 36% shares to International Power of UK. After extensive correspondence/negotiations with the International Power, the Power Purchase Agreement and other relevant documents have been amended, 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 acceptance of tariff by NEPRA, stipulating that WAPDA should only rent as much power as is absolutely necessary to be utilized with high load factor for economic utilization of capacity. The ECC was briefed by then government that given the urgency to have additional power capacity before next
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summer as per WAPDA’s demand projections and the long gestation period for new plant, renting of plant/plants appears 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 with the Ministry of Petroleum and Natural Resources to utilize this gas for the rented plants in the intervening period. The then Planning and Development Division concurred with the proposal of M/o Water and Power to keep the momentum of economic 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 capacity 10001200MW) 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 reevaluate RPPs location sites on the basis of oil storage space plus transportation and environmental impact. Secretaries Finance

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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. It 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 the 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 small rivulets coming further down to the bigger tributaries of River Indus and then to Indus River itself. The development of hydropower projects however, is characterized by remote locations and seasonal variations. Pakistan's climatic factors including rainfall and snowmelt, make it relatively easy to develop hydel generation 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
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development in summer months that would create an unbridgeable gap in winter months, the total requirement of hydel plants in private sector may be limited 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 national priorities and power demand growth. Realizing that these peculiarities of hydropower 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 incentives 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 infrastructure 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 industrialization also puts a premium on demand for electricity. Demands for augmenting the power infrastructure, unsatisfactory performance 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 market prices etc., provide motivation for resource mobilization, improving efficiency through involvement of the private sector, to reduce the burden on budgetary resources caused by ailing enterprises and more importantly, to meet consumer expectations within affordable limits of tariff. Reform of the power sector through restructuring and deregulation is high on the agenda of the Government of Pakistan (GOP). The GOP is committed to pursue a far-reaching reform program me for the power sector and to help meet the country's future power needs.
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Implementation of the envisaged program me will bring about a gradual transition of the power system from integrated, state-owned utilities to a decentralized system with separate generation, transmission and distribution entities, having substantial private ownership and management, reflecting 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;
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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 as one of the supply side measures. This Captive Power was mostly oil based. Subsequently, 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 different fuels could be fed to DISCOs on take-and-pay-basis at tariffs approved by WAPDA 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 integrated system in order to meet the power transmission requirements efficiently & effectively and for dispersal of power from generating plants to the load centers. To cater for the above, a number of schemes have been taken in hand. A list of the ongoing projects is given in the tables below. Approved PC-I cost at US$1=Rs. 30.83

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3.9 Finance department
Finance department plays vital role in every organization we can say that it’s a back born of every organization. Without it nobody can start the operations of any type of the business. WAPDA is generating revenue through producing electricity from Dams selling to Discos. I have served a week in finance department and learned a lot of things. Mr. Naseem has guided me for finance department working.

3.9.1 Hierarchy of Finance Department

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Finance Director (NTDC)

Manager Finance Corp: A/cs D.M Corp: A/cs-II D.M Corp: A/cs-III

D.M Corp: A/cs-I

Asstt. Manager Corp: A/cs (IOT) Asstt. Manager Corp: A/cs (Admin)
Asstt. Manager Corp: A/cs (Compilation)

Pension Cell Asstt. Manager Corp: A/cs (GAD) Asstt. Manager Corp: A/cs (Estt)

Mgr Fin. (CPC)

DM (B & A) F & TA

3.9.2 Manpower in Finance department 3.9.2.1 Finance Director Staff (Head Office) Summary:
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F.D (NTDC) Manager Finance (C.A) Manager Finance (CPC) Deputy Manager (B & A) / F & TA Deputy Manager Assistant Manager Account Officer B. Examiner Steno G-I Steno G-II Account Assistant Cashier Junior Clerk Driver Naib Qasid Daftri

01 01 01 01 03 08 16 01 01 02 23 10 10 04 06 01

-----------------------------------------------------------------------------------------------------------------Total 80

3.9.3 Different sections of Finance Department 3.9.3.1 Budget

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Each department of NTDC makes its budget that how much their expenses may occur during next year. They make their budget through previous year estimated budget and actually expenses occurred. Each department sends the budgeted expenses requirements to the finance director office in budget section. Budget section 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. Normally the final approval of budget is given less than the amount which is mentioned in the budget requirement. Whenever any office informs that more funds are required during a financial year then solid reason has to given. That request again passes through all formal way to get budget approval from the higher authorities. This section not only 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 section deals with all the matters related Human resource like attendance record, salaries, promotion cases forward to concern persons, maintaining stationary requirements 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 request to release the funds which are approved from the higher authorities to Banking & Imprest section. This section counter check the funds approval and limit then 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.
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3.9.3.4 Inter Office Transactions
Whenever material moves among the departments, then cash is not given and 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 checked and verified. Then limits are checked of that person who claimed the amount by this section. Afterwards expense is recorded by both way computerized and manually. Then voucher is sent to cashier who pays the bill by issuing the cheque. Almost all payments are made by bank cheque.

3.9.3.6 Book Keeping
This section is responsible to maintain all the records of accounts files. 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 sends to budget department of finance. Budget department consolidates all the budgets and make
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comparison with previous year and make one sheet budget of all departments of NTDC. Budget checked by Finance Director and Approved by Board of Directors. Then fund demand request is sent to Banking and Imprest Section to release 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 electricity transmission.

3.9.3.9 Pension Cell
This section is very important for the every permanent employee after his retirement. However this section deals with all the employees of NTDC but working 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 employees 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.

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3.10 FINANCIAL OVERVIEW OF WAPDA FINANCIAL RESULTS DURING 2008-2009
FINANCIAL OVERVIEW OF WAPDA FINANCIAL RESULTS DURING 2008-2009 Revenue Sale of Electricity Rental & Service Income Amortization of Deferred Credit Other Income Total Revenue (Rs. in Million) 62,745.023 182.537 1,009.089 1,592.379 65,529.028

EXPENSES Cost of Electricity Operating Expenses (inch depreciation) Financial Charges Tax Total Expenses Loss for the year 61,886.892 6,637.902 304.739 68,829.533 (3,300.505)
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FINANCIAL POSITION AS ON 30.06.2009 ASSETS Tangible Fixed Assets Long Term Advances / deposits Current Assts Total Assets (Rs. in Million) 39,704.222 23.281 26,123.094 65,850.597

Equities & Liabilities Share Capital & Reserves Long Term liabilities Current Liabilities Total Expenses

(Rs. in Million) 4,779.078 16,220.889 44,850.630 65,850.597

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COORDINATION 4.1 Coordination
The head of this department is Muhammad Adeeb (Deputy Director Account). 27 employees are working in this department. This department maintain the record of all the subordinate offices, maintain their account and prepare financial statements 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 financial 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
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Trial Balance Statement of Profit and Loss

All the accounts are prepares manually but only Trial balance is prepares with the help of computer software.

4.1.2 Investment
The budgeted and consolidation department usually invest in the banking sector and 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 department of WAPDA. Assistant Director Muhammad Ahmed Qureshi who is responsible for the working this department and he checks and approve the budgets. All the budgets are prepared by Account and budgeting officer Muhammad Inam. Here below is 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

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Purposed budget is prepares in the concerned department and compile in the budgeting 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 this department after discussion approves this budget and budget is approve by Deputy 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 statutory mandate is to utilize water and power resources of the country on the a undefined and multipurpose basis .WAPDA was empowered , among other to frame scheme for the generation of hydel and thermal power, transmission and distribution of power and construction ,maintenance and operation of power houses and WAPDA has been divided into three major entities for according and financing purpose via “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 authority through member finance WAPDA. He has three directors under him namely director, finance (admin & regulation), director finance (budget consolidation) and director accounts (funds).

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4.3.2 Jobs Perform By Budget and Consolidation Department
The director finance (budget & consolidation) is responsible to the director 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 directorate. • Dealing with the audit report/advances/draft paras pertaining to the common services offices (annexure A&B)

Consolidation of accounts of the offices/organization of the coordinating (common services) wing of WAPDA.

• •

The pre-audit and payment in respect of claim relating to the common services offices. Consolidation of accounts of the offices/organization of the coordinating Issuing of funds to the common services offices(annexure)

Investment of the surplus funds of WAPDA with different banks/financial institution 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 earmarking of funds for employees of coordinating wing of the WAPDA.
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• •

Process of the cases of the purchase of the physical assets received from different offices by the scrutiny committee constituted under economy measures.

Scrutiny/process of (a) revised budget estimates and budget estimate (b) cases of the additional budget grants and (c) re-appropriation of budget grants in respect of the accounting units of the coordinating. Wing, WAPDA hospital dispensaries under D.G (medical services) WAPDA Lahore and other directorates roe which payment 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 overhead) provided by power and water wing@ 1.0% and 0.8% of the budget of the concerned wing respectively. The size of the budget of the coordinating wing for year 2009-10 is Rs 982.407 million.

4.3.5 Capacity of the Budget Grant of the WAPDA Hospital
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The capacity of the budget grants of the WAPDA hospital/dispensaries under (medical services) WAPDA is Rs 1010.53 million. The expenditure of WAPDA medical 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 hospital/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, WAPDA 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)
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• • • • •

• •

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 1 2 3 4 5 6 7 8 9 10 Director General Finance (B&C) Director General, Medical Services, WAPDA Complex Lahore Transport Directorate, Sunny View, Lahore WAPDA Printing Press Sunny View, Lahore Central Stores Stationary Sunny View Lahore Code HOC WMS TPT WPP WSS

Chief Auditors WAPDA Al-Jannat Building, Bank Square Lahore CAR Public Relation Division, G26 WAPDA House Lahore Building Circle, 334-WAPDA House Lahore XEN Building Division Hyderabad XEN Building Division, Peshawar DPR BCD WBH WBP

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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 moving turbines because of this power generate. The HYDEL generation is 98% under the 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 main function performs by the hydel development head office situated in Gardee Trust Building Napier road Lahore.

5.2.1 Budget Section
Assistant Director Mjahid Hussain is the head of this section. The main responsibilities of this section include: • • • Prepare the estimated budget Compile the budget Approved or make queries the budget of a sub office
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Note: Budget prepares at site and compile in this department. This section approve loan for the construction of new dams, for repair and maintained of hydel power stations, for purchase of machinery, stationery and traveling expenses of the hydel offices. This section compares the new budget with the estimated budget and then approved and sends this budget to the G.M Finance 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 office 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 working of compilation section. This section compiles the data and accounts of sub offices, check their balance sheet, cash statements and other financial record. For this purpose they are using software named as ERP (Enterprise Recourse Planning).

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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 the operation, check all the payment voucher and assign a token number to these vouchers. The budget and account officer can pass any amount for recurring expenses 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 limit for the recurring expenses is depends upon their budget and monthly expenses. At least 3 months expenses should consider knowing the imprest limit. Following 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
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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 directly to the head office’s account.

5.2.5 Admin Section
Admin department play vital role in WAPDA. Because it joint all department of WAPDA with each another. The admin department controls the working of the overall department, assign their duties, and arrange training programs for employees inside the office or for the employees in the sub offices. There are 1600 employees 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 now the 30% from HYDEL and 70% from thermal. So the cost is very high because of more 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
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• •

Mangla dam Other small dams

5.4.2 WAPDA thermal
Four generation companies which are categories as company one, company two, company three and company four. For example the generation company at Jamshoro.

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 generation. The cost of thermal generation of electricity is rupees 300000 million annually.

5.4.5 Independent power producers (IPP)
These are private companies generate the electricity and make the contract with WAPDA and provide the electricity to WAPDA according to the decided rates.
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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 IPP.

5.4.8 By pass of merit order
This contract make through NATIONAL POWER CONTROL ORDER. A rate which different 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 rupees 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 for generation companies

5.4.10 Cost break up

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Fixed cost paid even units is closed. Fixed cost always charge on capacity. 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 showing the variable cost and Capacity purchase price or CPP included on fixed cost. The variable cost showing the costs of fuel, gas, and other variable costs but the 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 cost 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.

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5.4.15 Esclateable
According to CPP in this department discuss and calculate the fixed operating 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 year.

5.4.17 Contract from IPP
IPP provide electricity to the WAPDA, WAPDA making contract from these independent power producers for example contract to the company which charge variable cost from EPP on fuel base generation. So WAPDA agreement to this company and 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 100million units in 1997, the cost is rupees 1 per unit. so the cost is also rupees 100million.

5.4.19 Fuel Indexation
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It means charge the cost according to the fuel rate. The rate decide according to the current rate of fuel .for example the fuel indexation is 100million units and the rate is rupees 15 per unit. The cost is rupees 1500million and the 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 equal 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 which 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 COMPANY (NTDC) to grid estuations and drop electricity due to the flow of current.

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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 study. According to the CPM the work done accurately and timely so according to this 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, and 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).

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5.5.1 GENRATION COMPANIES
1. WAPDA ( just HYDEL )

2. GENCOS 3. IPP

5.5.2 Pipe line of Electricity

NTDC

DISCOS

GRID STATION

FINAL CONSUMER

5.5.3 Distribution margin
The margin which can get from deduction of cost in sale. This margin showing that the excess amount which getting in according to costing and planning department through the deduction of all costs from sale.

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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 tariffs which are followings.

5.5.7 Regulatory Tariff
NEPRA regulate the tariff then government of Pakistan (GOP) notify of this tariff. The other name of the regulatory tariff is determining tariff.

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5.5.8 Notified Tariff
The notified tariff showing by the government which are different from the determine or regulatory tariff.

5.5.9 Consumer Tariff:
This type of tariff making according to the consumer. The first two tariffs 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 prices 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

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• •

E2: For commercial business F: seasonal connection such as rice and ice mill. In which concept of fix charges. 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), projection units.

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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 justify 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. Revenue split in fixed and variable according to percentage. Variable cost / units and fixed cost measure in mega watts. WAPDA HYDEL capacity 6444 mega watts.

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CHAPTER 6 DIRECTOR OF WATER (WAPDA), WAPDA HOUSE LAHORE
The director of water control and discuss the varies functions which are 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 projects 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 reservoir is CHASHMA RISORWIRE, the purpose of this project use for just agriculture purpose. The generation of electricity at

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chashma barrage which is near from the chashma reservoir. The other purpose of this to increase the generation of fish.

6.2 Canals 6.2.1 Kachi canal
A project for agriculture purpose start from the province of the SINDH and 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 SINDH. It also running throughout the province of the PANJAB and use for agriculture 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 million.

6.3 Budgeting
In budgeting categorized because of different sources of funding according 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 expenditure of future one year and demands send to federal government according to projects. Write done all information and submit all proposal, this department received proposals from project and submit after checking to government. Checking accuracy record of usage of
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fund, caution calculation according to historical session, check trial balances and accumulated expenses calculate and less from pc 1 cost then available future calculation. Recognize the caution is accurate and locate 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 according to the requirements then calculate the expected valve of assets. The excess amount consume on project work and submit the proposal after the detail of all heads expenses such as admin expenses detail or break ups. All expenses and where these are consumed such as salaries, travelling allowances, daily allowances, power free supply, building stationary, advertisement 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 work rupees 9000 million. rent, rates and taxes, computer charges,

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
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• • •

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 deposits as a proposals to the federal government in this year

Maintain books and send to GENERAL MANAGER OF FINANCE, MEMBER WATER, CHAIRMAN and back to this department then making the cover letter and send to the federal government. 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 which 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 budget 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 deduction 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 foll0wing authorities involve and attend these meetings by the one or all of them.
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• • • •

GM NORTH(KHAIBAR PAKHTOONKHAH) GM SOUTH GM(PUNJAB) GM(NOTTREN AREAS) CHAIRMAN(WAPDA) In this meeting the parliament involves and approve and finalize the budget then

signature on that budget by the president. Now the current budget is approving 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 months 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 approved 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.
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• •

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 situation is unfavorable where project start, investment excess on project due to law & order situation. If saving i.e. rupees 5million then surrender to federal government or secondly. Transfer amount to needy project to just allocating projects which allocate against token money.

6.8.5 Off Funds
It means making a case of needy project transfer amount from continual project savings, approve by federal government or at same amount then use or federal government order to give past of that amount any other project, the federal government saying about it.

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6.9 Cost of generation of electricity

PARTICULAR

GENERATION(GWH) COST

(RS.

IN

MILLLION) HYDEL THERMAL GENCOS IPPS TOTAL GENERATION 36000 83000 290000 445000 28000 19000 30000 125000

GENERATED/ PURCHASE UNIT LOST UNITS SOLD SALE VALUE PER UNIT SALE RATE

83000 units 17000 units 66000 units Rupees 356000 million Rupees 5.4 per unit

7.0 FOREIGN CURRENCY DEPARTMENT 7.1 Funds Allocate By the Authority
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I visited in Foreign currency department in my 4 weak of Internship Mr Shoail Ahmed Director of Foreign Currency give brief knowledge of this department .WAPDA needs funds for its steadily expanding development programs and other functions in terms of its charter. The Authority is entitled to draw upon Authority 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 of its power

development programs through funds rise from revenue surplus of the Electricity Operations Branch. This is termed as self-financing the quantum of which is determined by the federal government. •

Loans obtained by the authority with the special or general sanction of the Government. Foreign aids and loans obtained from the IBRD, ADB and other International lending Now in current situation Foreign Currency department plays vital role because 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

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Foreign currency department working only for the development in WAPDA. The projects 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 department also provide valuable profit to government of Pakistan. Foreign exchange transactions developed from the growth of WAPDA activity among the help of different countries. As business relations grew, the importance of monitoring the value of foreign currency and trading it in the market facilitated a need to establish 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

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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 day.

7.5 Foreign Currency
In which currency WPADA takes loan it return loan in same currency. Normally WAPDA takes loan in dollar currency. Loan is combination of Principle amount + Interest

7.6 Agreement

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When WAPDA need loan it make agreement with money provider intuitions. This 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 country. 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 investment and without improving its capacity it can not meet the demand of general public. 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 taking loan. These parties are following

Borrower WAPDA
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• •

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 government can also give guarantee. WAPDA has responsibility to return loan to the loan 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. Government receive loan at low rate of interest like 2 or 3 percent but when government issue 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 reduce it.

7.12 Rates
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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

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Intuited World Bank Asian Development Bank International Monetary Fund Kawait Fund Sudia Arabia Fund

Amounts $ 54 Millions 27 Millions 13 Millions 8 Millions 31 Millions

Marine Insurance 8.1 Marine insurance procedure
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It has been observed that the detailed procedure as laid down in this office circular no INS/RRK/F. claim /cir-/6877/6974 dated April 26, 1969 and no

INS/gen/707/7587 dated 03-07-72 for reporting of marine claim is not being properly followed. 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 expeditious settlement of these claims, the instruction contained in the above quoted circulars have been modified up to date in the from of precise required to be observed in the a given situation as followed which may please be followed faithfully 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 within 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 of the receipt of short material should not exceed two months. If the documents are not received within above period, the insurance department will not be in a position to pursue the claim with M/s. national Insurance Corporation.

The marine policy protects the consignment right from the supplier warehouses anywhere in the world to port of shipment, marine voyage to the port in Pakistan and 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 immediately expires on the arrival of goods at final destination whichever is earlier.

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At the time of issuance of the purchase order, a copy of the same should be provided to the director insurance, WAPDA Lahore. he purchase order should clearly contain instruction binding the suppliers to supply non negotiable document to the director insurance for taking the insurance cover of the material shipped by sea not exceeding Rs25,000.000/-(Rupees two crore fifty lac) a week before the sailing of the vessel . the shipment which exceeds Rs25,000,000/- but does not exceed 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 By rail/truck By air

Rs 5, 00,000/- (Rs. Five lacs) per carry. Rs 10, 00,000/- (Rs. Ten lacs) per carry. 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 eight days without opening of the cases are with out survey will be held covered against undisclosed damages clause and additional premium will have to be paid at following rates.

up to first 2 months

5% per month of the full premium excluding premium for war risk cover

This will be reckoned from 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
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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 rates:

up to 30 days to be reckoned premium for war risk cover

additional 10% of the full premium including

• •

From date of expiry of 90 days are allowed For each additional 30 days premium for war risk cover. As soon as the goods are received in store the receiving officer should check the entire additional 10% of the full premium including

material with in 8 days of arrival of the goods. In case of loss or damages consignee should immediately inform the director insurance WAPDA Lahore. 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 but 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
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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 insured 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 short and wrong packing of the material. Therefore the consignees must immediately 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. When such reports are logged with the suppliers it is required to be done under the intimation to the insurance department, WAPDA, enabling them to lodge first information 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 supplier 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 consignees are provided to the insurance department WAPDA well in this time. The agency commission of the local agent may not be paid in case of shortage until and unless 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 the surveyor has declared the loss due to the
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short packing the claim of short packing does not lie against insurers and necessary steps may be taken for the recovery of the loss from the suppliers or recovered from the commission of his local 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 procedure are not supported with the essential documents. This is a very serious situation as the acceptance or repudiation of the claims depends upon the supply of following documents which should be furnished to

the insurance department WAPDA 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 attached with the repair bill;

Warehouse examination report and the survey report are the basic documents on which the claims are drawn. Claim bill should strictly be in accordance with the survey reports as its acceptance depends on the remarks of the surveyors and remarks of the consignee in the warehouse examination report. Therefore while filling up the
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warehouse examination report unwarranted remarks should not be given this may prejudice the claim. Similarly no statement should be made to the surveyor which may jeopardize the interest of WAPDA. In case the consignee consider that the award given by the surveyor is not in accordance with the damages sustained by the authority, it is their foremost duty to challenge the survey report with facts and figures and substantiate their view point most judiciously and provide a copy to insurance department WAPDA, to enable them to take up the matter with surveyor. But in no case the consignees should arrange the repair/replacement in contradictions of the survey report until and unless the challenged survey report 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 repair may be obtained from the national insurance corporation, Lahore through insurance department, WAPDA, otherwise the claim will not be paid by the national insurance 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 cases so that claims may not return unsettled. If case which remain unsettled for more than 3 months because of non supply of the Performa invoice and other essential documents the responsibility will be that of consignees and the matter will be referred to the Authority.

8.6 Procedure for recovery of loss/damage of consignment
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It has been observes that the marine insurance procedure circulated 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 claim 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 from the claim as per terms of the insurance Policy. • Clean receipts are given to the Carrier/Transporter by the consignee when the packages are in doubtful/damages condition thus the carriers escape their legal liability.

The claim damages during transit are not lodged on the carrier through Chief Resident 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, carrier/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 ocean freight are provided in installments. This further delays settlement of claim.

8.7 Settlements
In order to avoid loss to the authority and over-come the above situation and for the quick settlement of the claim, the following steps may kindly be taken to safe guard the interest of the Authority:-

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The information of loss should be reported direct to the nearest office of National 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 receipts of the material in warehouse to the chief resident representative Karachi immediately so that necessary recovery may be effected from the carriers/transporters 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 necessary documents i.e. proforma invoice, carrier/transporter and suppliers reply

accepting/declinging therir liabilities are attached.

A complete set of shipping documents, suppliers invoice, packing list, bill of lading, ship survey report and ocean freight may please be supplied by the chief resident representative Karachi/consignee to avoid un-necessary correspondence on the issue.

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WAPDA EQUIPMENT PROTECTION SCHEME 9.1 Introduction to scheme
“Self insurance scheme (sis)” was introduced in 1987 without any injection of equity by the WAPDA. Instead, the whole funding requirements are fulfilled through the contributions and profit on investments of weps surplus funds. It was restructured/renamed as “WAPDA equipments protection scheme (weps)” by the authority in its meeting held on April

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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 NTDC. 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
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• • • •

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 war Mutiny riots, military of popular rising insurrection, rebellion, revolution & state 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

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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 experience open doors for me of many opportunities because in this internship I learn a lot which give me help in my future. The employee of WAPDA is very corporative. The 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 and 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 suggest that other Numlians should do internship in WAPDA because it’s a large organization which work on non profit bases. Internship program is an important part to give student an opportunity to have experience of practical field. Unless and until 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 manner and with the spirit to learn practical orientation of theoretical study of framework. I have learned in finance departments of WAPDA as under

10.2 Coordination department Learning in Coordination department 10.2.1Investment
The budgeted and consolidation department usually invest in the banking sector and they invest for short or long period of time.
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10.2.2 Book Keeping
Book keeping section maintains the record of the entire department, make financial 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 the help of computer software.

10.3 HYDEL 10.3.1 Learning in HYDEL department 10.3.2 Measure the cost of HYDEL

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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 measure use the term of million gaga watt .

10.3.3Share 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 thermal generation. The capacity of HYDEL production is 27000 million units to 30000 million kilo watts (MKH) but still the total requirement is 90000 MKH.

10.3.4Energy 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

10.3.5Tariffs partitions
NEPRA give prices according to the different types of partitions of tariffs which are followings.

10.3.6 Regulatory tariff
NEPRA regulate the tariff then government of Pakistan (GOP) notify of this tariff. The other name of the regulatory tariff is determining tariff.

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10.3.7 Notified tariff The notified tariff showing by the government which are different from the determine or regulatory tariff.

10.3.8Budget section
Prepare the estimated budget and revised budget.

10.3.9Inter 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

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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 deposits as a proposals to the federal government in this year Maintain books and send to GENERAL MANAGER OF FINANCE, MEMBER WATER, CHAIRMAN and back to this department then making the cover letter and send to the federal government

10.4.2 Work plan:
It shows that how many work in 4 quarters, monthly, after 6 month and yearly

10.4.3Cash plan
In which showing that how many cash use in four quarters according to approved the final budget by the NEC

10.5 Budget and consolidation department Learning in Budget and consolidation department
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How to Dealing with the audit report/advances/draft pares pertaining to the common services offices

Consolidation of accounts of the offices/organization of the coordinating Issuing 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 and earmarking of funds for employees of coordinating wing of the WAPDA. Process of the cases of the purchase of the physical assets received from different offices by the scrutiny committee constituted under economy measures.

10.5 Foreign currency department 10.6.1Learning in Foreign currency department
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10.6.2 Core working
Foreign currency department working only for the development in WAPDA. The projects 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 department also provide valuable profit to government of Pakistan.

10.6.3PC 2
In pc 2 WAPDA makes feasibility report how much capacity of new project for which WAPDA want to take loan.

10.6.4PC 1
In pc 1 WAPDA start working on the project with the amount of project.

10.6.5Foreign Currency loans
In which currency WPADA takes loan it return loan in same currency. Normally WAPDA takes loan in dollar currency. Loan is combination of Principle amount + Interest

10.6.6Direct Loan
Direct loan WAPDA takes itself from commercial bank and other financial institutions. Normally WAPDA itself give guarantee for loan but some time government can also give guarantee. WAPDA has responsibility to return loan to the loan provider.

10.6.7 Relending Loan

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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 issue 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 reduce it.

10.6.8Return 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 World Bank Asian Development Bank International Monetary Fund Kawait Fund Sudia Arabia Fund Amounts $ 54 Millions 27 Millions 13 Millions 8 Millions 31 Millions

10.7 Marine insurance department 10.7.1 Learning in Marine insurance department 10.7.2 Marine insurance procedure

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The marine policy protects the consignment right from the supplier warehouses anywhere in the world to port of shipment, marine voyage to the port in Pakistan and thence by inland transit right up to job site.

10.7.3Liabilities 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 should be provided to the port authorities.

10.7.4Storage 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.

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• • • • • •

Electrical & mechanical equipments installed at all grid station of DISCOS and NTDC. 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 war Mutiny riots, military of popular rising insurrection, rebellion, revolution & state of seize. • Nuclear reaction, nuclear radiation or radioactive Contamination.

Losses/damages occurred due to faulty operation and defective design/material of unit.

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Working Experience
Internship is one of the crucial and difficult decisions of the career of 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 gained from the studies. It enlightens the thinking pattern of the students’ mind and shows 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 the 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 related to his area of interest as well as other people. This interaction gives him or 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 be found in any university nor in books. The student who is under going the process of learning in any organization gets the opportunity to observe the functioning of that organization. He is able to see how do organizational goals are achieved with the contribution of a large 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
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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 need 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 because 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 employees perform the tasks in a better and effective manner. • It is also important for the internees to not to be over efficient because the people 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 were 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 norms and behaviors observed in WAPDA.

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I have acquired the ability to adapt myself with the changing taking place in the environment.

By observing the organizational rules and regulations of WAPDA I have got familiarity with the practical environment.

I have been involved in various activities that have helped me to acquire coordination with other staff members of the department.

The internee must have good communication skill because he has to provide his supervisor 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 appraised. 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

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When the internee goes to the practical work place from the university area, he seeks proper guidelines from the senior staff that is not provided to them. • 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 organizational 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.

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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 employees and these are sources of motivation for workers.

• • •

Most are employees are satisfied with there jobs because work assigned to them is interesting and work load is low as compared to other business organizations each 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
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• •

Political Instability Scarcity Of Resources All though there are competent and high qualified workers but a large part of employees are incompetent and low qualified as compared to their job specification matriculates and intermediate are working at the job specification of MBAs or other 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 recruited.


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.
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WAPDA has opportunity rises dams height Manglla and remove mud in tarbilla dam which 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.
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• • • • •

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 to trip. Bad reputation.

RECOMMENDATIONS
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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 create awareness in the society to decrease energy consumption.
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13.5 Privatization WAPDA should not privatize all its companies. In my opinion if these companies will work under one authority it will be better for economy as well as for WAPDA too.

13.6 Training and development.
It is correct that “if you are not going forwards, you are in fact going backwards”. Current employees have skill deficiencies. Increased efficiency results in financial gain. It is very true “if you think training is expensive try ignorance”. Attitude, skills, and knowledge can be enhanced through effective training. The current status of training in WAPDA requires improvement & changes. The following 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 behavior, Quality management, Motivation, Corporate culture.

13.7 Long term debts
This increase in Long-Term debts is not good indication for WAPDA because due to this increase WAPDA has to pay more interest as shown in profit and loss Account of Power

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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 Charges rather should reduce these financial charges

13.9 Investment in other business
WAPDA should also invest in some profitable business like share of different companies except the sale of electricity.

13.10 Free in making decision
WAPDA is an independent organization so it should be independent in decision making. If the WAPDA is free in decision making, it will reduce its extra cost 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
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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 rates, due to which not only WAPDA but economy also suffers.

13.13 Blockade of promotions.
Employee’s motivation and productivity increases with opportunities to grow. 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 cadres. Inefficiency is another effect of delayed promotions apart from brain drain. So promotion should be in time as per criteria.

13.14 Job rotation

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Most of employees are stick to one set only, which result that they become 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 according to the modern style.

13.17 Generation of electricity from coal
Generation of electricity from coal is another source of generation of electricity. 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 commercial as well as for industrial sector. It will reduce WAPDA cost and will increase its profit.

Recommendation for the NUML:

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While studying in NUML, I have analyzed some problem. Keeping in views those problems following are my recommendations: • The institute also should arrange the field tours for its students to enhance and give the market exposures.

The management of this prestigious institute should introduce the training programs among the departments i.e. IAS & IBA same as the UMT does with the IBA for the promotion of students.

This institute also should organize the seminars with the cooperation of industries like with Chamber of Commerce and Supply Chain Group of Pakistan that assist its Students and the market will know its students.

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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, manufacturing

costs and inflation are at the rising trend, export competitiveness is eroded and the pressure on the balance of payments is increasing. These factors adversely affect the present growth trajectory of the economy.

AL though there are competent and high qualified workers but a large part of employees are incompetent and low qualified as compared to their job specification matriculates and intermediate are working at the job specification of MBAs or other 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 huge 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 cater to the energy sector.

• •

WAPDA had friendly atmosphere with its employees. WAPDA has the largest operational infrastructure and this type of structure exist only in 7 to 8 countries in the world.
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WAPDA has large number of departments and each department has different section but not proper coordination between them but not proper coordination between them.

Every task is accomplished after long process, because each file moves vertically, 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 stations 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 needs to adopt professionalism and develop aggressive policy to retain a highly motivated work force by offering attractive financial and career development incentives.

The long execution times, poor project management skills and consistent delays and high transmission and distribution losses have thrown the country into a crisis. 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

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• • • •
• •

ADB APCC B/O BPS CBR CPP CPP CPPA CRPEA CWDP D.G DISCOS DSL ECC ERP FESCO GENCOS GESCO GFAIO

Asian Development Bank Annual plant coordination committee Budget & Accounts Officer Basic Pay Scale Central Board of Revenue Captive Power Producer Cost and capacity purchase price Central Power Purchasing Agency Contract registrar and power exchange administrator Central work development party Director general Distribution Company Debit service liablity Economic Coordination Committee Enterprise recourse planning Faisalabad Electric Supply Company Generation Company Gujranwala Electric Supply Company Gross fixed assets in operations

• •

• • • • • • • • • •

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• • • • • • • • • • • •

GOP GSC GSO HBL HESCO HSD IBP IDC IESCO IPPS IOT IMF JBIC KESC KV KVA

Government of Pakistan Grid System Construction Grid System Operation Habib Bank Limited Haidarabad Electric Supply Company High speed diesel Indus Basin Projects Interest during the construction Islamabad Electric Supply Company Independent Power Producers Inter office transaction International monetary fund Japan Bank for International Cooperation Karachi Electric Supply Corporation Kilovolt; it is the amount of voltage required to run the motor. Kilovolt Ampere; it is the product of current and voltage required to run

• • •

the motor or a device. • • • KW KWH L & CA Kilowatt; the kilowatt is equal to one thousand watts. Kilowatt Hour Legal and Corporate Accounts
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LESCO MCB MESCO MW NAB NEC NEPRA NFIO NPCC NSRO NTDC O&M O/O PC PEPCO PESCO RFO SOP T&D

Lahore Electric Supply Company Muslim Commercial Bank Limited Multan Electric Supply Company Megawatt; the megawatt is equal to one million watts. National Accountability Bureau National economic council National Electric Power Regulatory Authority Net fixed assets in operations National Power Control Company Next Senior Reporting Officer National Transmission and Dispatch Company Operating and maintenance cost Office Order Project cost Pakistan Electric Power Company Peshawar Electric Supply Company Residue furness oil Standard Operating Procedure Transmission and distribution losses

• • • • • • • • • • • • • •

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• • •
• • •

UBL VOM W WAPDA WEPS WPPO

United Bank Limited Variable operating maintenance cost Watt; One watt is equal to 1 joule (J) of energy per second. Water and Power Development Authority WAPDA equipments protection scheme WAPDA Power Privatization Organization

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REFERENCES
Following are the references through which I have obtained the data about the authority 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 o o

• •
• • •

• •

www.wapda.gov.pk/ www.ntdc.com.pk/ www.pepco.gov.pk/

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APPENDICIES Internship Completion Certificate Internship Evaluation Performa

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CHAPTER NO 17

17.0 APPENDICIES

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