Budget Manual PDF

WATER AND POWER DEVELOPMENT

AUTHORITY
BUDGET MANUAL
V7
M. YOUSUF ADIL SALEEM & CO.

Chartered Accountants
Member of Deloitte Touche Tohmatsu
Limited
66-E-FCC, Syed Maratab Ali Road,
Gulberg IV, Lahore – Pakistan
Tel: +92 (0) 42 35757188
Fax: +92 (0) 42 35763091

BUDGET MANUAL
WATER AND POWER DEVELOPMENT AUTHORITY
TABLE OF CONTENTS
1 INTRODUCTION...................................................................................... 1
1.1 GENERAL INFORMATION ...................................................................... 1

1.2 BUDGETING CONCEPT ........................................................................ 1
1.3 SCOPE ........................................................................................... 2
1.4 DEFINITIONS.................................................................................... 3
2 FEDERAL GOVERNMENT BUDGETING ............................................................. 8
2.1 BUDGET PROCESS ............................................................................. 8

2.1.1 Budget Call Circular ..................................................................... 8
2.1.2 Preparation of Budget Estimates...................................................... 8
2.1.3 Types of Budget ......................................................................... 8
2.1.3.1 Capital Budget ........................................................................ 9
2.1.3.2 Revenue Budget ....................................................................... 9
2.1.4 Public Sector Development Programme (PSDP) .................................... 9
2.1.5 Resource Estimation ................................................................... 10
2.1.6 Revised Estimates ...................................................................... 10
2.1.7 Review of the Budget Proposals...................................................... 11
2.1.8 Finalization of the Budget Proposals ................................................ 11
2.2 FINANCIAL PROVISION OF THE CONSTITUTION .......................................... 11
2.2.1 Federal Consolidation Fund and Public Accounts ................................. 11
2.2.2 Custody of Federal Consolidated Fund and Public Accounts .................... 11
2.2.3 Annual Budget Statement ............................................................. 12
2.2.4 Supplementary And Excess Grants ................................................... 12
3 PROCEDURE FOR APPROVAL OF DEVELOPMENT SCHEMES ................................... 13
3.1 BUDGET ESTIMATE AND REVISED ESTIMATE .............................................. 13

4 CONCEPTION, PLANNING, DESIGN AND DEVELOPMENT OF PROJECT ...................... 15
4.1 GENERAL....................................................................................... 15
4.2 RECONNAISSANCE LEVEL .................................................................... 15
4.3 PRE-FEASIBILITY STUDY ..................................................................... 16
4.4 FEASIBILITY STUDY ........................................................................... 16
M. Yousuf Adil Saleem & Co., Chartered Accountants Page 3

Member of Deloitte Touche Tohmatsu Limited V 7

BUDGET MANUAL
4.5 DETAILED DESIGN ............................................................................ 18

4.6 TENDER / CONTRACT DOCUMENT ......................................................... 18
4.7 PROJECT REPORTING PROCESS ............................................................ 19
4.7.1 PC-II Proforma .......................................................................... 19
4.7.2 PC-I Proforma ........................................................................... 20
4.7.3 PC-III Proforma .......................................................................... 20
4.7.4 PC-IV Proforma.......................................................................... 20
4.7.5 PC-V Proforma .......................................................................... 20
4.7.6 Anticipatory Approval.................................................................. 21
4.7.7 Administrative Approval ............................................................... 21
4.7.8 Concept Clearance ..................................................................... 21
4.7.9 Re-Appropriation ....................................................................... 21
4.7.10 Supplementary Grant or Token Allocation ......................................... 21
4.8 PREPARATION OF PC-I, II .................................................................... 22
4.9 FINANCIAL & ECONOMIC ANALYSIS CARRIED OUT IN PC-I .............................. 22
4.9.1 Net present value (NPV) ............................................................... 22
4.9.2 Internal Rate of Return (IRR) ......................................................... 22
4.9.3 Payback period ......................................................................... 23
4.10 PROJECT FINANCING- WATER SECTOR PROJECT ........................................ 23
4.11 PROJECT FINANCING- POWER SECTOR PROJECT ........................................ 23
4.12 FEATURES OF PROJECT FINANCE .......................................................... 24
5 PREPARATION OF ANNUAL PUBLIC SECTOR DEVELOPMENT PROGRAMME ................. 26
5.1 GENERAL....................................................................................... 26
5.2 WATER DEVELOPMENT SCHEMES ........................................................... 26
5.3 POWER DEVELOPMENT SCHEMES ........................................................... 27
5.4 PROJECT DIGEST ............................................................................. 27
5.4.1 WATER WING PROJECT COSTS ........................................................ 27
5.4.2 POWER WING PROJECT COSTS........................................................ 28
5.5 SCHEDULE FOR PREPARATION OF PSDP ................................................... 28
5.6 GUIDELINES FOR FILLING PSDP FORMATS................................................. 31
5.6.1 General Instructions ................................................................... 31
5.6.2 Amended Final Budget Estimates .................................................... 33


BUDGET MANUAL
6 WATER WING CURRENT EXPENDITURE BUDGET ESTIMATE .................................. 34
7 BUDGETING OF FOREIGN LOAN/AID/SUPPLIERS’ CREDITS/GRANTS ....................... 35
7.1 GUIDELINES FOR PREPARATION OF FOREIGN LOAN/AID/GRANTS BUDGETS ........ 35

7.1.1 Foreign Loan/Aid/Grants .............................................................. 35
7.1.2 Procedure for preparing Foreign Loan Budgets .................................... 35
8 BUDGETING OF FOREIGN EXCHANGE ........................................................... 38
8.1 GUIDELINES FOR PREPARATION OF FOREIGN EXCHANGE BUDGET .................... 38

8.1.1 Estimates Of Foreign Exchange Requirements ..................................... 38
8.1.2 Foreign Exchange Components Of Development And Non-Development
Expenditure ........................................................................................ 38
8.1.3 Co-Ordination With Public Sector Development Plan (PSDP) .................... 39
8.1.4 Own Resources – Commitment Budget .............................................. 39
8.1.5 Preparation Of Foreign Exchange Budget........................................... 39
9 THE BUDGETING (ESTIMATION) PROCESS ...................................................... 43
9.1 CAPITAL EXPENDITURE-ASSETS............................................................. 43

9.1.1 Plant and Machinery ................................................................... 43
9.1.2 Camp Equipment ....................................................................... 43
9.1.3 Laboratory Equipment ................................................................. 43
9.1.4 Photographic Equipment .............................................................. 43
9.1.5 Arms Ammunition....................................................................... 43
9.1.6 Computer & Ancillary Equipment’s .................................................. 44
9.1.7 Electrical Equipment ................................................................... 44
9.1.8 Office Machines And Equipment ..................................................... 44
9.1.9 Drawing and Survey Instrument ...................................................... 44
9.1.10 Residential Furniture And Fixture ................................................... 44
9.1.11 Non-Residential Furniture And Fixtures............................................. 44
9.1.12 Tools and Plants including Miscellaneous T&P ..................................... 44
9.1.13 Library Books ............................................................................ 45
9.1.14 Utility Vehicles.......................................................................... 45
9.1.15 Mandatory Spare Parts ................................................................. 45
9.2 CAPITAL WORK IN PROGRESS ............................................................... 45
9.2.1 Land Acquisition/Compensation ..................................................... 45


BUDGET MANUAL
9.2.2 Main Civil Works ........................................................................ 45

9.2.3 Power Generation Units ............................................................... 46
9.2.4 Maps and Other Survey Documents .................................................. 46
9.2.5 Preliminary Expenses-Survey and Investigation ................................... 46
9.2.6 Buildings ................................................................................. 46
9.2.7 Canals, Minors/Distributaries, Disposal/flood carrier channels, water courses
46
9.2.8 Dam Construction ...................................................................... 47
9.2.9 Electrical and Mechanical Works ..................................................... 47
9.2.10 Transmission & Transformation Equipment ........................................ 47
9.2.11 General / Plant Assets ................................................................. 47
9.2.12 Interest Charges Loans ................................................................ 47
9.2.13 Consultant Fee And Other Expenses ................................................ 47
9.2.14 Custom Duty, Sales Tax And Port Clearing Charges ............................... 48
9.3 Project Management Expenses ............................................................ 48
9.3.1 Pay And Allowances Of Officers and Staff Including Leave Salary .............. 48
9.3.2 Honoraria, Over Time And Off Day Wages .......................................... 49
9.3.3 Medical Expenses ....................................................................... 49
9.3.4 Leave Salary And Pension Contribution ............................................. 49
9.3.5 Group Life Insurance ................................................................... 49
9.3.6 Free Energy Supply To Staff .......................................................... 49
9.3.7 Pension And Gratuity .................................................................. 50
9.3.8 Employees share in fund contribution .............................................. 50
9.3.9 Traveling Allowance ................................................................... 50
9.3.10 Rents, Rates And Taxes ................................................................ 50
9.3.11 Audit Fees And Expenses .............................................................. 51
9.3.12 Telephone Charges ..................................................................... 51
9.3.13 Education Cess .......................................................................... 51
9.3.14 Maintenance And Running Of Vehicles .............................................. 51
9.3.15 Running And Maintenance Of Utility Vehicles ...................................... 52
9.3.16 Running and Maintenance Of Plant and Machinery ............................... 52
9.3.17 Work charged Establishment ......................................................... 52
9.3.18 Repair And Maintenance Of Residential And Non-Residential Buildings ....... 52


BUDGET MANUAL
9.3.19 Stationery And Printing ................................................................ 52

9.3.20 Entertainment Charges ................................................................ 52
9.3.21 Postage and Telegrams ................................................................ 53
9.3.22 Other Contingencies ................................................................... 53
9.3.23 Authority Overheads ................................................................... 53
9.3.24 Supervisory Expenses .................................................................. 53
9.3.25 Depreciation............................................................................. 54
9.3.26 Telephone And Carrier System ....................................................... 54
10 MEDIUM TERM BUDGETARY FRAMEWORK .................................................... 55
10.1 INTRODUCTION ............................................................................... 55

10.2 MTBF AS A TOOL FOR MODERNISATION OF THE BUDGET SYSTEM..................... 55
10.3 DIFFERENCE BETWEEN MTBF AND TRADITIONAL BUDGETING ......................... 56
10.3.1 The Traditional Budgeting System ................................................... 56
10.4 MTBF PROCESS ................................................................................ 58
11 NON-DEVELOPMENTAL BUDGET ............................................................... 60
11.1 INTRODUCTION ............................................................................... 60

11.2 PROCEDURE FOR PREPARATION OF BUDGETS............................................ 60
12 HYDROELECTRIC - O&M BUDGET ............................................................. 63
12.1 BUDGET FORMS & STATEMENTS ............................................................ 63

12.2 GENERAL ESTABLISHMENT EXPENSES ACCOUNT ......................................... 64
12.3 OPERATING EXPENSES ACCOUNT .......................................................... 64
12.3.1 R & M - Power Generation Plant Assets ............................................. 64
12.3.2 R & M - General /Plant Assets ........................................................ 64
12.3.3 Maintenance Power - Fuel And Lubricants ......................................... 65
12.3.4 Repair and Maintenance of Dam/Reservoir ........................................ 65
12.3.5 R & M - Civil Works on Freehold Land ............................................... 65
12.3.6 Lease rentals ............................................................................ 65
12.3.7 Ijarah Rentals ........................................................................... 65
12.3.8 Insurance ................................................................................ 65
12.4 DEBT SERVICING .............................................................................. 65
12.5 HYDEL LEVIES ................................................................................. 66
12.6 INCOME BUDGET.............................................................................. 66


BUDGET MANUAL
12.6.1 Sale of Power ........................................................................... 66

12.6.2 Miscellaneous Income .................................................................. 67
13 SELF FINANCING OF PROJECTS/WORKS ..................................................... 68
13.1 CAPITAL EXPENSE ............................................................................ 68

13.2 CAPITAL WORKS, FINANCED FROM REVENUE............................................. 68
13.3 SELF SOURCE FUNDING ...................................................................... 68
14 PHASING OF BUDGETS .......................................................................... 70
14.1 MONTHLY PHASING OF INCOME AND EXPENSE BUDGET ................................ 70

14.2 MONTHLY PHASED CASH FLOW BUDGET .................................................. 71
14.3 STOCK LEVELS ................................................................................ 71
15 CASH FLOW BUDGETING ....................................................................... 72
15.1 EXPECTED REVENUE TO BE EARNED ....................................................... 72

15.2 REVENUE APPLICATIONS .................................................................... 72
15.3 SURPLUS AVAILABLE FOR SELF SOURCE FUNDING OF POWER DEVELOPMENT
PROJECTS .............................................................................................. 72
16 SELF FINANCING UNITS (SFU) ................................................................. 73
17 COMMON SERVICES BUDGETING .............................................................. 75
17.1 Expense Budgeting ........................................................................... 75

17.2 Source of funding ............................................................................ 75
18 NON DEVELOPMENT BUDGET- WATER WING ................................................ 77
19 BUDGETARY CONTROL ......................................................................... 79
19.1 MANAGEMENT ACTION ....................................................................... 79

19.2 FORECASTING RESULTS...................................................................... 81
19.2.1 General................................................................................... 81
19.2.2 How a forecast is made................................................................ 82
19.3 COMMITMENTS RECORDS .................................................................... 83
ANNEXURES .............................................................................................. 84
ANNEXURES WATER WING ............................................................................. 85
PROJECT TIME TABLES - ANNEXURE-W1-A.......................................................... 86
PROJECT DIGEST - ANNEXURE-W1-B ................................................................. 87


BUDGET MANUAL
FIXED EXPENSES- ANNEXURE-W1-C ................................................................... 89
ASSETS- ANNEXURE-W1-D .............................................................................. 91
WORKS- ANNEXURE-W1-E .............................................................................. 92
PUBLIC SECTOR DEVELOPMENT PROGRAMME 20_ _-20_ _ WATER WING WAPDA -

ANNEXURE-W1-F ........................................................................................ 93
QUARTERLY CASH PLAN- ANNEXURE-W1-G ......................................................... 94
QUARTERLY WORK PLAN- ANNEXURE-W1-H......................................................... 95
CONTRACT WISE/WORK WISE DETAILS- ANNEXURE-W1-I ......................................... 96
FINANCIAL FORECAST- ANNEXURE-W1-J ............................................................. 97
SUPERVISORY OFFICE BUDGET PROFOMA- ANNEXURE-W2 ........................................ 98
ANNEXURES POWER WING ........................................................................... 101
PROJECT TIME TABLES - ANNEXURE-P1-A ........................................................ 102
PROJECT DIGEST - ANNEXURE-P1-B ................................................................ 103
CAPITAL EXPENDITURE AND FINANCING PATTERN - ANNEXURE-P1-C ......................... 104
FIXED EXPENDITURE AND FINANCING PATTERN - ANNEXURE-P1-D ............................ 105
PUBLIC SECTOR DEVELOPMENT PROGRAMME 20_ _-20_ _ POWER WING WAPDA (37
COLUMN) - ANNEXURE-P1-E ......................................................................... 107
CASH PLAN FOR FY - ANNEXURE-P1-F .............................................................. 108
ANNUAL WORK PLAN FOR FY - ANNEXURE-P1-G.................................................. 109
FOREIGN LOANS FOR THE FY - ANNEXURE-P1-H .................................................. 110
SANCTIONED STRENGTH - ANNEXURE-P1-I ........................................................ 110
OPERATIONS AND MAINTENANCE BUDGET (CAPITAL & REVENUE) - ANNEXURE-P2-A ...... 111
ACTIVITY-WISE PROGRESS OF CAPITAL BUDGET FOR THE CURRENT FY - ANNEXURE-P2-B 115
ACTIVITY-WISE CAPITAL BUDGET FOR (NEXT YEAR) FY - ANNEXURE-P2-C ................... 115
ACTIVITY-WISE PROGRESS OF REPAIR & MAINTENANCE BUDGET FOR FY - ANNEXURE-P2-D

........................................................................................................... 116
ACTIVITY-WISE REPAIR & MAINTENANCE BUDGET FOR (NEXT YEAR) FY - ANNEXURE-P2-E 116


BUDGET MANUAL
REVISED BUDGET FOR CURRENT FY & BUDGET ESTIMATES FOR NEXT FY (VEHICLE WISE
REPAIR) - ANNEXURE-P2-F ........................................................................... 117
REVISED BUDGET FOR CURRENT FY & BUDGET ESTIMATES FOR NEXT FY (VEHICLE WISE
FUEL)- ANNEXURE-P2-G .............................................................................. 117
STORE BUDGET FOR FY - ANNEXURE-P2-H ........................................................ 118
FORM-A PAYMENT OF LOCAL MATERIAL - ANNEXURE-P2-I ...................................... 119
FORM-B PAYMENT OF IMPORT OF MATERIAL / WORKS - ANNEXURE-P2-J .................... 120
FORM-C FOREIGN EXCHANGE BUDGET OF LC OPENING FOR NEXT FY - ANNEXURE-P2-K .. 120
MANPOWER DATA AS ON ___________ - ANNEXURE-P2-L....................................... 121
LIST OF OFFICERS/OFFICIALS RETIRING DURING FY- ANNEXURE-P2-M ........................ 121
CASH FLOW PROJECTIONS ANNEXURE-P3 ......................................................... 122
HYDEL O&M BUDGET TIME TABLE ANNEXURE-P4 ................................................. 124
ANNEXURES GENERAL ................................................................................ 125
Project AID - ANNEXURE-G1 ......................................................................... 126
SUMMARY OF FOREIGN EXCHANGE REQUIREMENT - ANNEXURE-G2 ........................... 127
FOREIGN EXCHANGE REQUIRED FOR DEVELOPMENT SCHEMES DURING FY - ANNEXURE-G3 128
DETAILS OF FOREIGN EXCHANGE REQUIREMENT FOR IMPORTS (DEVELOPMENT) DURING FY -

ANNEXURE-G4 ......................................................................................... 128
DETAILS OF FOREIGN EXCHANGE REQUIREMENT FOR IMPORTS (CURRENT) DURING FY -

ANNEXURE-G5 ......................................................................................... 129
FOREIGN EXCHANGE BUDGET- INVISIBLE (DEVELOPMENT) FOR FY - ANNEXURE-G6 ........ 130
FOREIGN EXCHANGE BUDGET INVISIBLE (CURRENT EXPENDITURE)FOR FY- ANNEXURE-G7 131
PC-II FORM - ANNEXURE-G8 ......................................................................... 132
PC-1 FORM- ANNEXURE-G9 .......................................................................... 133
PC-III FORM (a &b) - ANNEXURE-G10 ............................................................... 134
PC - IV - ANNEXURE-G11 ............................................................................. 135
PC-V FORM - ANNEXURE-G12 ........................................................................ 136


BUDGET MANUAL


BUDGET MANUAL
1 INTRODUCTION
1.1 GENERAL INFORMATION
Water and Power Development Authority (WAPDA) is an autonomous Federal

institution created by the virtue of an act of Parliament 1958. WAPDA Authority
comprises Chairman and Members Water, Power and Finance. Its statutory mandate
is to utilize water and power resources of the country in a unified and coordinated
position. WAPDA was empowered to frame program for the generation of Hydel and
Thermal Power, Transmission and distribution lines and Grids etc. The Power Wing
of the Authority has been restructured into independent thermal generation
companies, distribution companies and a transmission and dispatch company,
whereas Hydel power generation has remained with WAPDA. The registered office
of the Authority is situated at WAPDA House, Shahrah-e-Quaid-e- Azam, Lahore,
PAKISTAN.
1.2 BUDGETING CONCEPT
The budgeting process is based on two main elements namely the expenses that
are estimated or forecasted to be incurred in the next period and the estimation of
sources/income from where these expenses will be met. Further the expenses are
divided into capital and revenue. Expenses which are proposed to be incurred on
procurement of assets or development of assets are termed as capital expenditure.
The expenses estimated to be incurred on running of the organisation are termed
as revenue expenditure.
This Budget manual has been compiled to provide guidance to the employees of
Water and Power Development Authority (WAPDA) on all major areas of the
budgeting process. This manual lays down comprehensive policies and procedures
to be followed in preparation of the Budget. The policies stated herein are
minimum requirements under normal conditions and are intended to assist the
budgeting personnel in the preparation of accurate and reliable budget estimates
and it’s reporting to all concerned quarters.


BUDGET MANUAL
This manual has been divided into two parts, which are as follows:
PART-I DEVELOPMENT BUDGETING-WATER & POWER
PART – II NON DEVELOPMENT BUDGETING
All Wings of WAPDA through the respective General Managers Finance are
independently responsible for developing their budgets and dealing directly with the
Ministry in all budgeting matters. The Budget and Coordination Department under the
Member Finance deals with the Policy matters related with the budgeting process.
Once the budget of the wings is approved by the Ministry the same is passed on to the
Budget and Coordination Department for consolidation and circulation purposes.
1.3 SCOPE
This manual shall be reviewed and approved by the Authority from time to time or
as and when need arises.
The policies and procedures prescribed in this manual shall apply to all budgeting
preparation related matters of WAPDA and are applicable to the Budget
preparation personnel in particular.
The Budget Personnel shall be responsible for the preparation of budget

information on the forms and schedules given in the Annexures. These are Model
Formats and are meant to acquaint the readers/users of the manual with reference
to the write-up provided in various chapters of the manual.
The Model Formats are subject to change according to the requirements of the
Federal Government. Only the formats issued by the relevant office of the General
Manager Finance calling for the compilation of the budget shall be treated as the
final version of the formats on which the budget for the year/period shall be
compiled.


BUDGET MANUAL
1.4 DEFINITIONS
In this Manual, unless there is anything repugnant on the subject or context.-

Terms Description
Annual Plan Coordination

"Annual Plan Coordination Committee"
Committee (APCC) means the Committee headed by the
Secretary, Finance and Economic Affairs, to
prepare Annual Plan for submission to the
National Economic Council.
Anticipatory Approval
Approval granted by the Chairman ECNEC for
execution of a scheme in anticipation of its
formal approval by ECNEC. Requests for such
approvals is submitted to the Cabinet
Division and has to be secretary of the
division concerned for all federal schemes
and by the ACS (Dev) for provincial schemes.
Authority
"Authority" means the Pakistan Water and
Power Development Authority established
under WAPDA Act 1958; comprising of
Chairman, Members Water, Power and
Finance.
Authority Overheads
Overhead charges for meeting the expenses
of the Authority and its central offices.
Budget
A plan of financial operation embodying an
estimate of proposed expenditures for a
given period and the proposed means of
financing the same over a future defined
period for achieving organisation’s
objectives.
Budget and Accounts Officer
"Budget and Accounts Officer" means an
officer attached with the Project Director
incharge of small project for the aforesaid
purpose and submission of accounts and
budget to the Chief Engineer or General
Manager concerned, as the case may be.
Central Development Working
"Central Development Working Party" means
Party (CDWP) a body headed by the Secretary, Planning
Division to process and clear the Schemes


BUDGET MANUAL
Terms Description
costing over Rs.60 Million and up to Rs.

1,000 Million submitted to it by the
respective Administrative Ministries and for
the Provinces up to Rs. 5,000 million, as the
case may be.
All projects (federal or provincial) in which
FEC is more than 25% of the project cost will
also be considered by CDWP.
Chairman
"Chairman" means the Chairman of the
Pakistan Water and Power Development
Authority
Common Services
Services being performed for all Wings of
WAPDA
Custodian
An individual responsible for safeguarding
cash.
Departmental Development
“Departmental Development Working Party"
Working Party (DDWP) means a body for approving programme up
to Rs. 60 million for federal ministry
/division/department headed by the
respective Secretary/ Head of Department
and includes representatives of Finance
Division and concerned Technical! Section in
the Planning and Development Division
Director Budget and Accounts
"Director Budget and Accounts' means an
officer attached to General Manager
concerned for the purpose of preparation,
consolidation and submission of accounts
and budget of the particular Sub-Sector to
the Director(Finance) attached with the
General Manager Finance
Director General Finance (B & C)
"Director General Finance (Budget &
Coordination)" means the officer appointed
to coordinate and consolidate the accounts
and the budget of the Water and Power
Wings of the Authority
Drawing & Disbursing Officer
The person designated as such by the
(DDO) competent authority
Executive Committee of National
"The Executive Committee of National
Economic Council (ECNEC) Economic Council" means the Executive


BUDGET MANUAL
Terms Description
Committee headed by the Finance Minister

to accord approval to the PCI Proforma of
the schemes costing over Rs. 1,000 Million,
as presented to it by the Planning Division
after clearance by the Central Development
Working Party.
Expense
General expense including WAPDA supplies,
office repair, vehicle running and
maintenance, postage, utilities,
reimbursement of travel and the like which
are related to the operations of WAPDA.
Fiscal year
A twelve months period over which a
company budgets its spending. Fiscal year of
WAPDA is established for the period ending
on 30th June.
General Manager (Finance)
"General Manager (Finance) Coordination"
Coordination means the officer appointed to coordinate
and consolidate the accounts and the budget
of the Water and Power Wings of the
Authority
General Manager (Finance)
" General Manager (Finance) Water/Power"
Water/Power means an officer attached to the respective
Member for the purpose of preparation,
consolidation and submission of accounts
and budgets of the respective Wing after
approval from the Member to the Authority
Major Head-Development
"Major Head" in relation to development
expenditure means developmental loans and
advances by the Federal Government from
internal and external resources to WAPDA
Water & Power Wings.
Member
"Member" means the Member (Water, Power
& Finance) of WAPDA
National Economic Council (NEC)
"National Economic Council" means a body
headed by the Prime Minister to give
sanction to the Annual Plan before
presentation to the Parliament i.e. National
Assembly and the Senate.
PC-1 A pro-forma prescribed by Planning

Commission on which all projects/schemes


BUDGET MANUAL
Terms Description
are required to be drawn up. It covers all

technical and financial details,
environmental aspects, benefits, risks and
environment issues related with the project.
A proforma prescribed for small projects

PC-1 (Low Cost)
costing less than Rupees one million
A proforma prepared by the Federal ministry

having provincial components to be financed
PC-1 (Umbrella PC-1)
through a joint loan by the donor agency. (It
could fall in any one sector of the economy)
PC-II
A proforma prescribed by Planning
Commission for Survey and Feasibility
Studies of development projects which is
prepared prior to initiating any project.

Commission for Physical Targets based on
PC-III
PSDP Allocations of development projects
which is prepared after PC - I.

PC-IV
Commission for Project Completion Report.

PC-V Commission for Annual Performance Report
after Completion of Project
Priority Committee
"Priority Committee" means the Committee
headed by the Additional Secretary; Budget,
for the purpose of fixation of priority and
financial allocation to various schemes and
projects as presented by the sponsoring
agencies to the Federal Government through
their respective PSDP's.
Project Director
In-charge of a project
Secretary WAPDA
The Secretary of WAPDA Authority


BUDGET MANUAL
PART -I
WATER AND POWER DEVELOPMENT BUDGETING


BUDGET MANUAL
2 FEDERAL GOVERNMENT BUDGETING

2.1 BUDGET PROCESS
The budgeting process kicks off with issue of the budget call circular by the
Ministry of Finance (which is tasked with preparation of the country’s budget) to
various ministries and line departments and independent entities.
2.1.1 Budget Call Circular
1. This is the official notice issued by Ministry of Finance to departments

asking them to prepare and submit budget estimates for the following fiscal
year. This document is a complete set which includes budget forms,
instructions and guidelines for preparing budget estimates.
2. It also sets out the target dates by which the various stages of budget
formulation are to be completed. Since time factor is important, emphasis
is laid, among other things, on the strict observance of the budget time
table at all stages of budget making.
3. The departments/agencies are required to submit a statement of: (i)

permanent expenditure on the current budget (ii) projected expenditures
on existing development projects (iii) proposals for new expenditures, and
(iv) proposals for expenditure on new development projects.
2.1.2 Preparation of Budget Estimates
Keeping in view the past actual expenditures, current trends and future
expectations, estimates are prepared in details separately for current, non-
development and development expenditures.
2.1.3 Types of Budget
The Budget is divided into two main sections, namely:
i) Capital Budget
ii) Revenue Budget


BUDGET MANUAL
2.1.3.1 Capital Budget
The Capital Budget is intended for development projects in the country.

The capital expenditure is generally met from the revenue surplus, reserve
funds and borrowings for specific or general purpose.
2.1.3.2 Revenue Budget
The Revenue Budget presents current or day-to-day non-development

expenditures. The current revenue derived through taxes, duties and other
miscellaneous receipts is used to finance debt repayments, running of civil
government, defense etc. If revenue receipts are greater than the current
and non-development expenditures, the surplus amount is transferred to
Capital Budget. If revenue receipts are less than the current expenditures,
the Government has to plug the gap through borrowings.
2.1.4 Public Sector Development Programme (PSDP)
The development projects for the year are outlined in Public Sector
Development Programme (PSDP). It indicates the financial allocation and
targets of various development schemes. It is prepared by the Planning
Commission in consultation with the Ministry of Finance and the Provincial
Governments. The Plan is finally approved by the National Economic Council.
The preparation of Annual Budget Plan starts as early as November. The size of
the plan is fixed by taking into consideration the requirements of the economy
and plan targets. The plan is communicated to the executing agencies and the
provincial governments by the Planning Commission. The sector-wise
development programs are formulated by sponsoring agencies and finalized by
the Planning Commission after a detailed discussion. These allocations are then
considered, first by the Priorities Committee in March/April and then by the
Annual Plan Coordination Committee in April/ May. The National Economic
Committee gives final recommendation of the plan for approval of the
Parliament.


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2.1.5 Resource Estimation
Prior to determining the size of the plan, the Ministry of Finance determines
the resources available to undertake development projects. This exercise is
completed in coordination with the governmental agencies concerned,
particularly Federal Board of Revenue (FBR) and Provincial Finance
Department. Following are the principal components of resource estimation:
i) Public Savings: the surplus of revenue receipts over current

expenditures;
ii) Net Capital Receipts: recovery of loans, saving schemes, prize

bonds, Government Bills, etc.;
iii) Foreign Economic Assistance; and
iv) Deficit Financing (Local Bank Borrowing).
2.1.6 Revised Estimates
The Revised Estimates for the current year are also prepared. These estimates
include provisions for authorized expenditure which is expected to be incurred
before the close of year. If revised estimates for the year exceed the
authorized grants, these should be supported by documentary evidences to
prove that the increase has been duly authorized by the competent authority.
The executing agency will also indicate how the excess is to be met from either
or all of the following:
i) Appropriation of savings in the existing grants;
ii) Appropriation from other items; and
iii) Supplementary grants.
Budgeting is a very serious process and if revised estimates are less than the
authorized grants, the reasons for under-utilization of the grants have to be
clearly stated.


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2.1.7 Review of the Budget Proposals
The proposals submitted by different departments and ministries are reviewed.

The review of the budget proposals vary greatly depending on whether the
expenditures are fixed/variable and are for a new item. Most of the current
budget is treated as fixed; it is not reviewed in detail unless there is an
extraordinary change in the estimates from the previous year. All costs relating
to personnel (employees) including pension costs, debt servicing and office
administration are categorized as fixed expenditure.
2.1.8 Finalization of the Budget Proposals
Once the proposals have been reviewed and modified wherever necessary these
are consolidated on basis of departments, ministries and the Government and
put up for approval of the Federal /provincial governments.
2.2 FINANCIAL PROVISION OF THE CONSTITUTION
Finance Procedure as prescribed by the Constitution of 1973 of Islamic Republic of

Pakistan is contained in Articles 78 to 85. These Articles are produced below:-
2.2.1 Federal Consolidation Fund and Public Accounts
All revenues received by the Federal Government all loans raised by that
Government, and all money received by it in repayment of any loan, shall form
part of a consolidated fund, to be known as the Federal Consolidated Fund.
All other moneys received by or on behalf of the Federal Government or

received by or deposited with the Supreme Court or any other court or
department, or independent body or Authority, established under the authority
of the Federation; shall be credited to the Public Account of the Federation.
2.2.2 Custody of Federal Consolidated Fund and Public Accounts
The custody of the Federal Consolidated Fund, the payment of money into that
Fund, the withdrawal of moneys there-from, the custody of other moneys
received by or on behalf of the Federal Government, their payment into, and
withdrawal from the Public Account of the federation and all matters
connected with or ancillary to the matters aforesaid, shall be regulated by Act


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of parliament or, until provision in that behalf is so made, by rules made by the
President.
2.2.3 Annual Budget Statement
The Federal Government shall in respect of every financial year cause to be laid
before National Assembly a statement of the estimated receipts and
expenditure of the Federal Government for that year, which is known as the
Annual Budget Statement. The Annual Budget Statement shows separately all
sums required to meet expenditure described by the Constitution as
expenditure charge upon the Federal Consolidated Fund; and the sums required
to meet other expenditure proposed to be made from the Federal Consolidated
Fund; and shall distinguish expenditure on revenue account from other
expenditure.
2.2.4 Supplementary And Excess Grants
If in respect of any financial year it is found:-

i) that the amount authorized to be expended for a particular service for the
current financial year is insufficient, or that a need has arisen for
expenditure upon some new service not included in the annual Budget
Statement for that year; or
ii) that any money has been spent on any service during a financial year in
excess of the amount granted for that service for that year; the Federal
Government shall have power to authorize expenditure from the Federal
Consolidated Fund, whether the expenditure is charged by the Constitution
upon that Fund or not and shall causes to be laid before the National
Assembly a Supplementary Budget Statement or as the case may be, an
Excess Budget Statement, setting out the amount of that expenditure.


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3 PROCEDURE FOR APPROVAL OF DEVELOPMENT SCHEMES

3.1 BUDGET ESTIMATE AND REVISED ESTIMATE
1. Under clause 8 of WAPDA Act, the Authority is charged with the responsibility
for preparation of comprehensive plans for the development and utilization of
water and power resources of Pakistan on a unified and multipurpose basis. For
this purpose, the Authority will prepare scheme or schemes for the Federation
and Provinces or any part thereof providing for all or any of the following
matters, namely:-
i) irrigation, water supply and drainage; and recreational use of water

resources;
ii) the generation, transmission and distribution of power; and the

construction, maintenance and operation of power houses and grids;
iii) flood control;
iv) the prevention of water logging and reclamation of waterlogged and salted
lands;
v) inland navigation; and
vi) the prevention of any ill-effect on public health resulting from the
operation of the Authority.
2. WAPDA Water Wing undertakes schemes for development of dams, water

channels drainage and other projects as are awarded to it by Federal or
provincial or local Governments or by the WAPDA power wing. The schemes are
conceived as a result of work undertaken by the Planning and Investigation
department of Water Wing, which identifies the probable sites for the water
and power projects. The funds for this task are earmarked by the Federal
Government in the annual PSDP. Based on these surveys the process of pre-
feasibilities and later technical feasibility are undertaken. Once the project is
approved the respective planning departments of the two wings take over the
execution part of the Scheme. All development schemes undertaken by Water
wing are funded, whether it involves foreign exchange or local funding, by the
entity (federal, provincial or even the power wing) which has ordered/initiated
the scheme. Its operational budget consists of the expenses of supervisory


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offices and is recovered through overhead charge billed to the schemes.
3. With the restructuring of the WAPDA Power Wing into independent thermal
generation companies, distribution companies and a transmission and dispatch
company, the functions of thermal generation, distribution and transmission
were transferred to these companies. WAPDA at present only undertakes power
generation projects based on hydel power. However unlike Water Wing the
Power Wing has to identify the sources from where the scheme shall be funded,
that is whether through foreign loans/aids/grants or direct negotiation with
foreign banks or through the surplus expected from sale of power.


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4 CONCEPTION, PLANNING, DESIGN AND DEVELOPMENT OF

PROJECT
4.1 GENERAL
The harnessing of hydropower resources requires a long gestation period from

project conception to power generation. The project development involves two
important stages of planning and implementation. In addition to critical stage of
project implementation, site identification, preliminary economic studies,
feasibility study and detailed engineering design are important mile stones of
planning phase.
Field visits and investigations are a first step for establishing the design
parameters, and for estimation of cost and benefits. The scope of field works and
further studies is established as per requirement of the original study. With further
detailed studies, technical parameters and cost estimations are improved to refine
the economic and financial viability of the project. Planning phase spread over a
number of sub stages as explained herein after.
4.2 RECONNAISSANCE LEVEL
1. Reconnaissance study is defined as the preliminary feasibility study designed to

ascertain whether a feasibility study is warranted. The reconnaissance study is
first planning stage to identify and to catalogue the hydropower resources
existing in the river basins. A reconnaissance study is an abridged feasibility
study having as its major objective a preliminary economic evaluation and
identification of the technical issues, which will be considered during feasibility
study.
2. At reconnaissance level, structure location, placement of structures, geo-

technical problems, accessibility, transmission lines, settlements and
resettlement issues, availability of construction materials, diversion scheme,
geo.-technical and engineering geology, appraisal of discharge, verification of
estimated head and such matters are assessed. In addition, type of weir and
powerhouse are important features, which are to be investigated.
3. Preliminary layout drawings, power and energy estimation, and preliminary cost
are prepared and the economic viability of the project is established. For
reconnaissance studies power unit cost (cost per kW installed and unit cost of


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annual energy generation (cost per kWh) should be established. Ranking of

projects identified in a specific region or river is prepared on the basis of
economic evaluation of identified schemes. Finally, a detailed assessment of
data requirement for feasibility study is prepared.
4.3 PRE-FEASIBILITY STUDY
1. A pre-feasibility study is the second organised step in the hydropower

investigation and planning. At this stage the project has already been
identified, located and properly named. Pre-feasibility study is normally
prepared for a large or mega project before feasibility to check the economic
viability with improved data. The main purpose of the pre-feasibility study is
to:
i) Establish demand for the project.

ii) Formulate a plan for developing this project
iii) The project is technical, economical and environmental acceptable.
iv) Make recommendation for future action.
2. Pre-feasibility study is normally based on available data and information of

reconnaissance level field survey. However, investigations are made in
sufficient detail and data presented should be of sufficient accuracy.
3. In pre-feasibility study, one or more project alternatives are proposed and

studied before selection. Further investigation and processing is required
before selection. The layout alternatives are studied and investigated to find
the best project development possibilities for which detailed field
investigations are needed.
4.4 FEASIBILITY STUDY
1. Feasibility studies are carried out to determine the technical, economical

and environmental viability of a project. This phase of investigation consist
of detailed investigations and studies, which are directed towards
achieving the ultimate permission, financing, final design and construction
of the project under investigation.
2. A feasibility study is prepared following the rules set by national and

international finance institutions, serves as basic document for financing.
The main purpose of this phase of investigation is to establish and define


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the engineering and operation plan and to determine whether the potential
development is technically and economically feasible.
3. Feasibility studies are sufficiently detailed and ensure that during detailed
engineering, the feasibility of the project is not impaired due to major
alterations in the plan. The feasibility design is normally termed as
preliminary design.
4. Field investigations like topographic survey, geological mapping, bore hole

drilling, field and laboratory tests, refraction survey, socio-environmental
survey, hydrological and sediment observations, model studies, by thematic
survey, power market survey and transmission line survey are carried out
with sufficient details.
5. Detailed studies are carried out for hydrology and sedimentation, power and
energy, geology, foundation conditions and construction material, seismic
risk evaluation, environmental impact assessment, project layout studies
and optimisation studies, civil engineering design, hydro-mechanical and
mechanical design, electrical design, project quantities and costs,
construction planning and scheduling, economic analysis and financial
analysis.
OPERATION
RESOURCES STUDIES SITE- SPECIFIC STUDIES
PREPARATION/ UPDATION OF
RESOURCES INVENTORIES
PREPARATION/ UPDATION OF RANKING

OF RESOURCES
PRLLIMINARY/
RECONNARSSANCE STUDIES
PRE-FEASIBILITY
STUDIES
FEASIBILITY STUDIES
Continous Process 3 TO 4 YEARS


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4.5 DETAILED DESIGN
1. The detailed design is undertaken to provide basis for tender document on

which tenders for construction can be invited. The detailed engineering studies
consist of:
i) Detailed field investigations

ii) Specifications
iii) Final design
iv) Cost estimate
v) Construction schedule
vi) Design report and data books
2. After the selection of a project layout the engineering design of civil,

mechanical and electrical equipment are taken up. Engineering survey,
geological explorations and similar work accomplished during feasibility
investigations are usually carried out to the extent needed to prove technical
feasibility and provide basis for preliminary design and reliable cost estimate.
The purpose of the detailed investigations is to extend and supplement the
information developed during feasibility investigations.
3. Civil design relating to regulation work, waterways, powerhouse, etc. are

carried out. The design consists of hydraulic design, structure design,
dimensioning of electromechanical and hydro-mechanical equipment and
preparation of specifications. Drawing should be sufficiently detailed and on
the basis of which bill of quantities is prepared and it should provide the basis
for writing performance requirements and specifications.
4. The detailed engineering studies include the preparation of general and

detailed specifications for the construction and supply of the project. The
specifications will set the quality of the work to be performed and the
standards to be used by the contractors and equipment manufacturers.
Specifications must include the terms of payment. The specifications will also
propose methods of construction and any special conditions or procedures to be
observed during construction.
4.6 TENDER / CONTRACT DOCUMENT
1. For contracting the works or supply, documents are prepared which govern
the tender and form the documentary basis for the contracts between the


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owner and contractors and suppliers. For successful tendering, the tenders are
amended to incorporate all amendments resulting from the tender and contract
discussions, including the signed contract form.
2. The contract documents mainly consist of the following:
i) Contract conditions
ii) Engineering documents
3. The contract conditions deal with the legal aspects and compiled mainly into
one separate volume while the engineering documents take care of technical
side of the work and compiled into three or more volumes. The Tender
documents consist of following Five Important Parts;
i) Instruction to tenderers
ii) General conditions of contracts
iii) Special conditions of contract.
iv) Special and technical provisions
v) Various forms
4.7 PROJECT REPORTING PROCESS
To monitor the project planning and progress reports during different stages of
project cycle, government of Pakistan has designed five different forms from PC-I
to PC-V.
i) PC-II AND PC-I DEAL WITH IDENTIFICATION AND PREPARATION OF PROJECTS

FOR IMPLEMENTATION
ii) PC- III DEALS WITH THE PROGRESS MONITORING OF PROJECTS UNDER
PLANNING AND IMPLEMENTATION
iii) PC-IV AND PC-V DEAL WITH PROJECTS AFTER IMPLEMENTATION.
4.7.1 PC-II Proforma
It deals with project proposal and is required for conducting surveys

(identification of hydropower resources) and feasibility studies, in respect of
large projects. The objective of this is to get full justification for undertaking
the project before large resources are tied up.


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4.7.2 PC-I Proforma
It is the basic form on which all projects are required to be drawn up. PC-I is
prepared after detailed feasibility study has been completed. However,
detailed design and drawings are not pre-requisite for the approval and
preparation of PC-I. Its preparation is the pivotal phase of the project cycle
because after its approval project implementation will be taken up.
4.7.3 PC-III Proforma
This proforma is designed to furnish information on the progress of on-going

projects on quarterly basis. It is required to be submitted by the executing
agencies/departments within 20 days of the closing of each quarter. It includes
financial as well as physical progress of the subject project. Information
regarding bottlenecks experienced during the execution period is also
incorporated.
4.7.4 PC-IV Proforma
The project completion report on PC-IV is to be furnished by every executing

agency soon after a project is completed. It includes the full history of the
project including financial and physical phasing, emphasizing the risks taken
and mistakes committed along with the remedial measures adopted and
experience gained. It also includes the history of the number of persons
employed.
To guide those who are charged with the execution and supervision of similar
projects in future, some suggestions about prevention of delays and cost
escalation is also included. This is also very much needed in post evaluation
process. It should include the comparison of planned performance with actual
performance. The reasons to achieve planned performance should be explained
in detail.
4.7.5 PC-V Proforma
This is to be furnished on an annual basis for a period of five-years by the

agencies responsible for operation and maintenance of the projects. It should
include the review of cost, expenditure and financial results as estimated in
completion report. Reasons for variation in result may also be included for
future guidance to planner and decision makers. The performance of the
persons involved in operation and maintenance is the major part. Any


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difficulties experienced during operation should also be highlighted. Future

suggestion to avoid any type of mistake may also be included.
4.7.6 Anticipatory Approval
This is an approval for the execution of a scheme given in advance, to begin

loan negotiation, before the scheme is approved formally by the ECNEC. The
request for anticipatory approval has to be submitted on the prescribed
proforma to Planning Commission through formal channels.
4.7.7 Administrative Approval
Project approved is followed by Administrative approval. The Federal Ministry

in case of federally sponsored projects issues it and is actually sanctioned for
incurring expenditure.
4.7.8 Concept Clearance
The project in which foreign exchange is involved needs to be submitted to

Concept Clearance Committee located in the Planning and Development
Division on prescribed proforma to obtain its clearance for starting negotiation
for aid by the Economic Affairs Division. The Committee has same composition
as CDWP and meets concurrently with CDWP.
4.7.9 Re-Appropriation
If there is some savings on a project and execution agency may desire to utilize
the same on some other project being executed by the same agency, the
request is to be made to Planning and Development Division for re-
appropriation. After consideration of the case in relation to the implementation
of the other projects, the Planning Division decides the case.
4.7.10 Supplementary Grant or Token Allocation
If the saving is not available in the agency’s allocation, it requests the Planning
and Development Division to allow a supplementary grant. The Planning
Division decides each case on its merit and then recommends it to the Finance
Division. Un-approved priority projects are financed with Token Allocation to
bring these projects on PSDP subsequently.


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4.8 PREPARATION OF PC-I, II
1. Every scheme prepared by the Authority shall be submitted for approval to the
Government with the following information;
i) a description of the scheme and the manner of its execution;
ii) an estimate of costs and benefits; the allocation of costs to the various
purpose to be served by the scheme and the amounts to be repaid by the
beneficiaries; and
iii) a statement of the proposals by the Authority for the resettlement or re-
housing of persons likely to be displaced by the execution of the scheme.
2. The basis of the development budgeting is;
i) approved PC-II and PC-1 Proforma;
ii) loan agreement entered into with the foreign loan giving agencies with the
approval of the Government;
iii) contract agreement entered into with the local and foreign suppliers;
iv) the strategy and the targets set-forth in the respective plan documents and
the annual plans as indicated by the Government in the Water and Power
Sectors.
4.9 FINANCIAL & ECONOMIC ANALYSIS CARRIED OUT IN PC-I
4.9.1 Net present value (NPV)
The “present value” is the value today of a sum of money due in the future,
taking account of the cost of money known as the discount rate. The discount
rate used by the investor in the Equity of a project Company is the required
minimum rate of return. The NPV is the difference between discounted cash
inflows and outflows of an investment opportunity during the indicated period.
4.9.2 Internal Rate of Return (IRR)
The IRR measures the return on the Investment over its life. It is the discount
rate at which the NPV of cash inflows and outflows is zero. As against positive/
negative amount of NPV, the IRR calculation shows exact discount rate or
return on investment of a project. In working out EIRR, the revenue inflows also


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include various benefits, which usually do not provide cash to the project. The
Economic cost of the project also excludes IDC, Taxes & duties, abnormal
contingencies and reduced by applying Standard Conversion Factor (SCF).
4.9.3 Payback period
1. It is very crude measure for taking investment decision. The pay back
calculation shows the length of time a project will take to recover the
original investment amount ignoring the discounting of future cash flows.
2. Financial and Economic analysis of Hydel power project is done through

some additional ratios, which are:
i) Financial Internal Rate of Return (FIRR)
ii) Unit cost analysis
iii) Benefit/ cost ratio
4.10 PROJECT FINANCING- WATER SECTOR PROJECT
The Water sector projects after completion are physically handed over to the
related provinces for their operation and maintenance, therefore no revenue
accrues to WAPDA after its physical transfer to the provinces and/or the related
agencies. WAPDA implements the projects as an execution agency through the
financing provided by GoP and the related provinces and agencies. The financial
source available for water sector projects generally includes:
i) Grants made by the Government.
ii) Loans obtained from the Government on behalf of related province.
iii) Grants made by local bodies as required by the Government.
iv) Grants/Aids by the donor agencies under special arrangement.
4.11 PROJECT FINANCING- POWER SECTOR PROJECT
1. WAPDA develops the Hydel power projects on Build, Own and Operate (BOO)
basis therefore has to explore multiple options to finance the project during
construction in addition to those of available for water sector projects. The
additional options are as follows:


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i) sale proceeds of bonds issued under the authority of the Government;
ii) loans obtained by the Authority with the special or general sanction of the
Government;
iii) direct loans negotiated by the Authority from local and foreign financial
institutions
iv) foreign aid and loans obtained from the International Bank of
Reconstruction and Development, ADB, KFW etc with the sanction of and on
such terms and conditions as may be approved by the Government;
v) income from sale of electricity; and
vi) any other sums received by the Authority.
2. For the purpose of borrowing money under WAPDA Act, the Authority shall be
deemed to be local Authority under the Local Authorities Loans Act, 1914. The
Authority is permitted to borrow money for making and execution of any
scheme in furtherance of the objective as defined in WAPDA Act. The liability
of the Government to the Creditors of Authority shall be limited to the extent
of grants made by the Government and the loans raised by the Authority with
the sanction of the Government.
4.12 FEATURES OF PROJECT FINANCE
1. Project finance structures differ between various industrial sectors and from
deal to deal. There is no such thing as “standard” project finance, since each
deal has its own unique characteristics. However, there are common principles
which underline the project finance approach. Some typical characteristics of
project finance are
i) It is provided for a “ring-fenced” project (i.e., one which is legally and

economically self-contained) through a special purpose legal entity (usually
a company), whose only business is the project (the “Project Company”).
ii) It is usually raised for a new project rather than an established business
although project finance loans may be refinanced.


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iii) There is a high ratio of debt to equity (“leverage” or “gearing”) – roughly

speaking, project finance debt may cover 70-90% of the cost of a project.
There are no guarantees from the investors in the Project Company (“non-
recourse” finance), or only limited guarantees (“limited-recourse” finance),
for the project finance debt.
iv) Lenders rely on the future cash flow projected to be generated by the
project for interest and debt repayment (debt service), rather than the
value of its assets or analysis of historical financial results.
v) The main security for lenders is the project company’s contracts, licenses,
or ownership of rights to natural resources; the project company’s physical
assets are likely to be worth much less than the debt if they are sold off
after a default on the financing.
vi) The project has finite life, based on such factors as the length of the
contracts of licenses or the reserves of natural resources, and therefore the
project finance debt must be fully repaid by the end of this life.
2. Based upon the feature elaborated above, the project finance differs from a
corporate loan, which is primarily lent against a company’s balance sheet and
projections extrapolating from its cash flow and profit record, and assumes the
company will remain in business for an indefinite period and so can keep
renewing (“Rollover”) its loans.
3. The project finance itself has two elements:
i) Equity, provided by investors in the project
ii) Project finance-based debt, provided by one or more groups of lenders


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5 PREPARATION OF ANNUAL PUBLIC SECTOR DEVELOPMENT

PROGRAMME
5.1 GENERAL
As defined by the Federal Government, the overall objective of Public Sector

Development Program (PSDP) is to achieve sustainable economic growth so as to
improve living standards of common people. It is formulated to implement
Governments socio-economic agenda in line with objectives of Economic Growth
Framework recently formulated by the Planning Commission to ensure inclusive
growth by achieving MDGs (Millennium Development Goals), , including but not
limited to reducing poverty, minimizing wastages, ensuring balanced
development, gender balance and achieving food, energy and water security. The
PSDP responds to emerging needs of the economy with substantial investment in
priority sectors of Infrastructure and Social Sectors. Towards this end, a close
collaboration with provinces has been stressed to efficiently utilize limited public
funds as per sectoral priorities. In era of resources constraints, the quality of public
investment is being enhanced even for provision of public goods. Role of Private
sector is recognized to supplement the efforts of the government. Resources and
efforts of private sector are being leveraged for innovative financing like Public
Private Partnership (PPP), Build to Operate and Transfer (BOT) and Build to
Operate and Own (BOO) basis
5.2 WATER DEVELOPMENT SCHEMES
The Schemes/Programmes which are undertaken by the WAPDA Water wing are as
under:
i) Tube well
ii) Canals/Water Distribution Works
iii) Surface Drains, Pumping Stations, Tubewell Electrification
iv) Water Reservoirs and Dams
v) Irrigation and Drainage programmes
vi) Flood Damage works


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vii) Research, Investigation and monitoring and Engineering studies
5.3 POWER DEVELOPMENT SCHEMES
Hydel Power Development schemes, undertaken by the WAPDA Power Wing, fall
under two main categories depending on the nature of available water sources.
One type is based on Dams/reservoirs where the water is taken to turbines through
tunnel. In the second case, the mere flow of river water is either taken over a
specific gradient (run of river) or another case where special channels are used to
provide the flow required to run the turbines. The two types of schemes are:
i) Hydel Power Projects with Dams & Reservoirs
ii) Hydel Power Projects with Run Of River/Channel
5.4 PROJECT DIGEST
The initial work for the preparation of the Public Sector Development Programme,
at WAPDA Water and Power Wings, is entrusted with the office of the General
Manager/Chief Engineer/Superintendent Engineer whoever is designated as the
Project Director. The task starts with the preparation of the Project Digest which
provides the technical and financial details of the proposed project, the costs
incurred during the current period and those expected to be incurred during the
next period. The financial details cover all costs required for the project over its
expected time of completion.
5.4.1 WATER WING PROJECT COSTS
In the case of Water Wing the cost of project are covered under the following
major heads:
i) Land Acquisition and re-settlement
ii) Assets
iii) Civil works-Camps, Colonies and Roads
iv) Dams Construction
v) Canals and other distributaries
vi) Electrical and Mechanical Works


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vii) Project Management Expenses (Overheads)
viii) Interest on loans during construction
ix) Consultancy and Engineering Fees
x) Preliminary Civil works
5.4.2 POWER WING PROJECT COSTS
In the case of Power Wing the cost of project are covered under the following
major heads:
i) Land Acquisition and settlement
ii) Operational building and Civil Works
iii) Power Generation Plant
iv) Furniture and Fixtures
v) Transportation Equipment
vi) Transmission and transformation equipment
vii) Tunnels, Weir, Head/Tail Race
viii) Residential and Non-residential Buildings
ix) General Plant Assets including Utility Vehicles
x) Project Management Expenses
xi) Interest on loans during construction
xii) Consultancy and Engineering Fees
xiii) Preliminary Civil works
5.5 SCHEDULE FOR PREPARATION OF PSDP
1. The schedule for the preparation and submission of the Public Sector
Development Program and the formats, on which PSDP will be submitted to the
Federal Government, is circulated by the Planning Commission to all
concerned. Complete instructions for preparing the PSDP, are provided with
these formats.


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2. Some of the important points to be taken care of while preparing these

estimates are:
i) inter and intra sectoral priorities in formulating development programmes

have to be carefully devised in order to ensure that the scarce resources
available, for the development programmes are not thinly spread on a
large number of schemes specially, the new ones. Adequate provisions
may, however, be made for the on-going essential projects to obviate the
necessity of proposing supplementary grants immediately after
programme is approved.
ii) Estimated physical achievement up to the end of June for each project
should be indicated in the format. (This physical progress will pertain to
the year during which the programme is being submitted).
iii) Physical targets envisaged for the next financial year for each project in
each sector should be indicated in the format and also in the statement of
physical targets given in Annexure W1-J.
3. In drawing up the development programme, it has to be ensured that no serious

imbalance would arise in the implementation of sectoral and sub-sectoral
programmes. The General Managers entrusted with the planning work in Water
and Power Wings will ensure that the process for approval of projects is
accelerated within the framework of policy decision taken by the Government
from time to time, so that an adequate portfolio of duly approved projects is
ready and available for the programme as well as for foreign aid negotiations.
4. In drawing up the development programmes, the following consideration

should generally be kept in view:-
i) The major objective should be the consolidation of the development

efforts in order to achieve the maximum efficiency in public investment.
ii) No new project should ordinarily be undertaken unless it is in-escapable.

Decision for starting any new project should be taken at a high level
giving full justification in each case.


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iii) The programme should fully cater for and protect the on-going projects
which are in advanced stage of execution and other key programmes
related to the output in the short run.
iv) Priority should be given to foreign aided projects, which are in

consonance with the national objectives, as any reduction in the
expenditure on aided projects would also tend to reduce the resource
availability.
v) Long term commitments on projects which have not yet been started
should be avoided and resources should be concentrated on immediately
productive programme to protect the production goals. Efforts should be
made to increase efficiency in implementation and utilization of existing
capacity.
vi) The proposed schemes should be arranged in order of priority so that if

resources fall short of requirements, low priority schemes may either be
dropped or allocations for such schemes be reduced.
vii) Construction component of the programme be limited to the barest

minimum. Standard rates on an average basis should be adhered to.
viii) PSDP should be in line with prevalent economic policies and strategies of
the Government. All Ministries/ Divisions may therefore, scrutinize their
projects in the approved portfolio and those awaiting approval and
determine whether these fall within the parameters of the economic
agenda of the Government. While undertaking this exercise, Ministries/
Divisions may also identify projects that are based on (a) public private
partnership (PPP) and (b) community/ NGOs participation in terms of cost
sharing or otherwise.
ix) The amount on the projects to be financed through foreign aid should
separately be mentioned with source in rupees indicating the expenditure
on import of goods and services. This is necessary because under certain
foreign aid agreements the Government of Pakistan is required to first
incur the expenditure in local currency and claim re-imbursement later
on. Allocations to on-going projects which have reached at fairly advanced


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stage of completion should adequately be earmarked in order to complete

such projects during the Fiscal Year.
x) Brief project profile may be given in the given column of the prescribed
proforma.
xi) Provision of payment of equipment, IDC and Custom duty may be

adequately reflected separately under the proposed demand. This would
assist the forum while considering allocations for these projects under
Annual PSDP.
5.6 GUIDELINES FOR FILLING PSDP FORMATS
The PSDP plan on the “Budgetary Corporation Programme For Water and Power
Wings” which will accompany the PSDP are reproduced as Annexure W1-A to W1-J
and Annexure P1-A- to P1-I, respectively.
The instructions for filling up the Model Budget Form supporting documents to the
PSDP will be strictly followed. The same codes as provided in the Chart of Account
shall be used for each minor head, detailed head and primary unit of
appropriation.
5.6.1 General Instructions
1. After completion of the model budget forms in the manner specified in the
preceding paragraphs, the format of PSDP will be completed.
2. The figures of actuals to be shown under the relevant column will be

accurately worked out and based on the reconciled and booked figures of
the General Manager Finance concerned. For this purpose, each Project
Director and Chief Engineer will be allowed the assistance of Budget and
Accounts Officer under the restructured organization of Budget and
Accounts. The main function of this officer will be not only to coordinate
the figures of Budget and Accounts but also to assist the Project Director
and Chief Engineer in preparation of Budget.
3. The year-wise phasing of funds should be based on the phasing given in the
PC-I/PC-II wherever possible, while keeping in sight the project completion
period. Similarly, the contractual obligations should also be kept in view


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while formulating the budgetary demand for the next year.
4. These forms duly completed will be submitted to the respective Chief

Engineers/General Managers who after consolidation, will forward it to the
respective General Manager Finance. General Manager Finance concerned
will after scrutiny forward the PSDP along with supporting data to the
Authority through the Member Finance for approval, before transmitting it
to the Federal Government.
5. The PSDP after approval by the Authority, will be forwarded to the Ministry
of Water and Power with copies to the Ministry of Finance, Economic
Affairs, Division, Planning Division, respective Provincial Governments
Departments and all G.Ms and C.Es. The PSDP will also be accompanied by
an explanatory memorandum prepared on the basis of data and other
material furnished by the respective G.Ms and the others, and finally
approved by the Authority on the proposals submitted to them.
6. The PSDP submitted by WAPDA to the Ministry of Water and Power is first
considered in a Pre-priority meeting convened by the Ministry of Water and
Power. The next meeting of the PSDP is held in the Ministry of Finance and
Economic Affairs for consideration of PSDP proposals by the Priority
Committee. In the Priority Committee WAPDA is represented by its three
Members. After the proposals are cleared by the Priority Committee, the
PSDP is taken up in the meeting of Annual Plan Coordination Committee
which is presided over by the Secretary, Ministry of Finance and Economic
Affairs. This meeting is held at the Secretary's level and is attended by
Chairman from the WAPDA side. The PSDP proposal after approval in the
Annual Plan Co-ordination Committee is then finally approved by the NEC
presided over by the Prime Minister before it is presented in the form of
grants and appropriation to the Federal Legislature for final approval. After
the Legislature passes the budget of the Federal Government, the
budgetary documents are made available to WAPDA in which the grants
made to it for the water and power schemes are specified.
7. Similar procedure is observed in submission of PSDP to the Provincial

Governments in respect of schemes which are executed by WAPDA on their


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behalf. After the Budgets are passed by the Provincial Assemblies, the
Budget grants as notified through the various Budget documents are
supplied to WAPDA.
5.6.2 Amended Final Budget Estimates
On receipt of the budgetary documents, the budget grants are notified by the
respective General Manager (Finance) to the respective Wings. Thereafter, the
sub-head-wise details are approved by the Member concerned and transmitted
to the G.Ms, Chief Engineers and Project Directors. In case the allocation
approved by the Government is less than that demanded by the Chief Engineers
and the Project Directors, an exercise will at once be undertaken by the Chief
Engineers and Project Directors to re-determine physical targets which could be
fulfilled within the reduced allocation. The revised targets will be
communicated by the Project Directors/Chief Engineers to the General Managers
within a fortnight of receipt of the budget grants. The General Managers in turn
will communicate these targets to the Member concerned who after the
approval by the Authority will communicate these to the Federal and Provincial
Governments. The GM Finance (Water) and (Power) will provide a copy of the
modified budget/ physical targets to GM Finance (Coord) to prepare a
consolidated budget document for the Authority.


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6 WATER WING CURRENT EXPENDITURE BUDGET ESTIMATE
Some of the water sector projects executed by WAPDA have not physically been
transferred to any other agency and WAPDA is still responsible for operation and
maintenance of said projects. Khanpur Dam and O&M of Telemetric & Hydromel
Network projects are examples of said projects. The O&M expenses of said projects
are financed by the Federal Government (GoP) under interest free loans to WAPDA
by the Ministry of Finance and Current expenditures budget of Ministry of Water &
Power, respectively. WAPDA is required to submit O&M expense estimates on the
prescribed formats under a given schedule to the P&D Division through Ministry of
Water & Power.


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7 BUDGETING OF FOREIGN LOAN/AID/SUPPLIERS’

CREDITS/GRANTS
7.1 GUIDELINES FOR PREPARATION OF FOREIGN LOAN/AID/GRANTS BUDGETS
7.1.1 Foreign Loan/Aid/Grants
Following are three types of foreign loans/aids/suppliers’ credit/grants which

are available to WAPDA:
i) Foreign loans, suppliers’ credits, grants which are negotiated by the Federal
Government with the loan giving Governments and Agencies. Various kinds
of loans, such as IBRD, IDA, KFW, CIDA, ADB, IDBP, OPEC, SFD, Italian
Credits, Kuwait Loans and German Counterpart Funds, etc., in different
currencies are examples of such loans and credits.
ii) Foreign financing out of the Government foreign exchange resources

acquired through directly negotiated loans and credits by the Federal
Government with different loan giving Governments Agencies e.g. Japan,
Germany, United Kingdom, France, Canada, World Bank, ADB etc.
iii) Foreign loans, supplier credits, grants which are directly negotiated by the
Authority with the lending Agencies and granted to WAPDA under the
guaranteed loans and are in various foreign currencies.
7.1.2 Procedure for preparing Foreign Loan Budgets
1. In order to match resources with the level of Development Programme that

may be fixed for the next financial year, it is essential that the provision
made for foreign aid of the sources side is fully tied up with the
corresponding provision on expenditure side for each individual project
included in the Public Sector Development Programme.
2. All foreign aided projects should be fully provided for according to the
agreed disbursement schedules along with the matching rupee cover
so as to enable speedy utilization of foreign aid already committed or
likely to be committed during the year. It may be noted that under
the current budgetary procedures, the provision made for foreign aid


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is not available for rupee expenditure or vice-versa, and no

appropriation is permissible between the provision for rupee and for
foreign aid expenditure. It is, therefore, important that the estimates
are prepared carefully so that disbursements of all foreign aid
(grants, loans and export credits) are fully and adequately reflected
both in these estimates and in the estimates that may be furnished
for the Public Sector Development Programme.
3. Estimates of Foreign Economic Assistance are prepared on

disbursement basis. Budget estimates for the civil works are based
upon estimated payments to be made for the progress of the works
whereas for imports of machinery & equipment its basis are for
estimated delivery during the financial year.
4. Some of the foreign Lenders require WAPDA to contribute a portion of

the project cost from its own sources up to a certain fixed
percentage. This aspect should be kept in view while formulating the
budget demands.
5. The Estimates of foreign projects are required to be drawn up taking into

the consideration foreign grants, loans and suppliers credits both:
i) Already committed /assigned
ii) Under negotiation and likely to be committed /signed during the Year
20XX AND 20YY against which disbursements are expected to take place.
6. The estimates are required to be prepared on disbursement basis i.e. .

Estimated time of delivery /receipt of equipment, machinery etc., and not
on contract basis or on order placed with supplier of machinery/equipment.
7. All foreign added projects should be properly reflected in the budget return
keeping in view the priorities and disbursement schedule as agreed with
donor and embodied in PC-I to enable full and speedy utilization of foreign
aid already committed or likely to be committed during the period
mentioned


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8. It is essential to indicate name of donor with each project and projects

without identification of donors would not be accepted.
9. The estimates should be furnished both in the currency of the donor agency
and in equivalent Pak Rupee with foot Note indicating the conversion rates.
10. Currency of commitments means the currency in which the commitments

have been made. (Estimates should be provided in both, the currency of
commitment and equivalent Pak Rupee).


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8 BUDGETING OF FOREIGN EXCHANGE

8.1 GUIDELINES FOR PREPARATION OF FOREIGN EXCHANGE BUDGET
8.1.1 Estimates Of Foreign Exchange Requirements
In order to enable the Ministry of Finance, Government of Pakistan, to

formulate foreign exchange proposals, the Ministries and Departments of
Government and semi-public institutions like WAPDA are required to furnish the
estimates of foreign exchange expenditure, commitments and disbursements
(physical imports and invisible payments), project-wise and
purpose/commodity-wise. All requirements of new equipment and machinery,
spares, raw materials, etc., to be procured from abroad, including
freight/insurance charges and down payments, where required, are given under
physical imports.
All payments in foreign currency for missions abroad, repayments of foreign

loans (principal) and payment of interest, foreign travel (delegations including
salaries, trainees sent abroad including their salaries and allowances),
payments to experts/consultants, periodical subscriptions and agency services,
are shown under invisible requirements.
8.1.2 Foreign Exchange Components Of Development And Non-Development

Expenditure
In case of both development schemes and non-development expenditure

involving foreign exchange whether met from the country's own resources
(cash, commodity aid or barters) or from foreign aid, the relevant estimates
should be accompanied by additional information in the proforma given in
Annexure G1 to G7.
Irrespective of its source and type, all foreign aid should be accounted for in
the budgeted expenditure for individual development schemes. It is, therefore,
necessary for Administrative Divisions to include full rupee value of all foreign
aid. The provision so made should also be indicated separately together with
the nature and source of the committed/anticipated foreign aid.


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8.1.3 Co-Ordination With Public Sector Development Plan (PSDP)
The preparation of foreign exchange development budget should be properly

coordinated with the Public Sector Development Programme approved by the
Government. The provision of matching rupee cover under local currency
should be made for own resources (cash, commodity aid or barters) in the
PSDP. It may be noted that without such a cover, it will not be possible to
utilise allocations of foreign exchange from cash resources, commodity aid and
barters.
8.1.4 Own Resources – Commitment Budget
Foreign exchange own resources budget is a commitment budget (although

estimated disbursements are also shown therein), that is to say, commitments
can be made up to the extent of sanctioned cash allocations for a half year. If
commitments for the entire cash allocation are not registered with the State
Bank of Pakistan before the expiry of the half year, the un-committed balance
lapses, unless specifically revalidated. If commitments exceeding the released
amount are made, they are not accepted by the State Bank. Commodity Aid
and Barter allocations depend upon signing of relevant agreements. Allocations
against agreements already signed will be available with immediate effect and
can be utilized any time during the financial year. It is, therefore, necessary
that estimates of foreign exchange requirements are made very accurately.
Inaccurate estimating cuts both ways. If estimates are pitched unnecessarily
high, foreign exchange, every bit of which is useful for the development of the
country, is locked; and if estimates are made on the low side essential works
may be held up.
8.1.5 Preparation Of Foreign Exchange Budget
1. The Foreign Exchange Budget is compiled in a set of formats provided by

the Finance Division each year. These Annexures are as under:
Annexure G-1 Project Aid

Annexure G-2 Summary of Foreign Exchange Requirements
Annexure G-3 Foreign Exchange Requirements for Development
Schemes


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Annexure G-4 Foreign Exchange Requirements for Imports

(Developments)
Annexure G-5 Cash Foreign Exchange Requirements Under Non-
Development Schemes (Current) For Imports
Annexure G-6 Foreign Exchange Budget For Invisible Development
Annexure G-7 Foreign exchange Budget for Invisible Current
Expenditure
2. The following guidelines may be followed in drawing up the estimates :
i) The foreign exchange budget shall be prepared in millions of rupees.
ii) The development portion should be segregated from the current (Non-
Development) portion. The forms should be filled in separately for
Development Expenditure and Current (Non-Development) Expenditure
on disbursement basis. Estimates of disbursements shall be prepared
as accurately as possible on the basis of schedules of disbursement
against the L/Cs already opened and likely to be opened. Any errors in
the calculations are likely to distort the entire balance of payments
projections.
iii) Provision for allocation from own resources should be included only for
those approved development schemes which have been included in the
PSDP and for which part financing from own resources was approved
by the ECNEC, CDWP or other appropriate sanctioning authority.
Efforts should be made for maximum use of foreign project assistance,
commodity aid.
iv) Provision for down payment to be made under the terms of any credit
or loan, both project and commodity aid may be shown separately.
v) No lump sum provision should be proposed and details of all items,

included in a demand should be given.
vi) No provision for expenditure in foreign exchange should be proposed

for import of items manufactured within the country.
vii) Proposals of current expenditure (Non-Development) in foreign

exchange shall be included in the estimates only after due


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consideration of the latest instructions on economy as well as

instructions regarding visits abroad.
viii) Authentic figures of disbursement for the first half of the current
financial year against outstanding L/CS of previous year and fresh L/CS
of current financial year may be collected before preparing the
foreign exchange budget.
ix) The respective GMF will ensure corresponding rupee cover is available
in the budget for the year and that development projects for which
foreign exchange allocation have been proposed are included in the
annual PSDP recommended to the Priorities Committee.
x) Demands for foreign exchange cleared in the priorities Committee or

at inter-departmental meetings will be placed before the Exchange
Control Committee whose recommendations will be submitted to the
Government for approval. The demands approved by the government
will be communicated to Ministries/ Divisions/ Autonomous Bodies and
Provincial Governments.
xi) Foreign exchange from cash resources will be allocated in two or more
installments in keeping with the resource position. Any amount not
utilized within the shipping period for which it has been released will
stand lapsed on its expiry unless it is revalidated.
xii) While cash allocations lapse with the financial year allocations under
aid are carried forward to the next financial year. Carry forward of aid
allocations from the previous year’s allocation will, therefore, be the
first charge on the next years rupee budget.
xiii) Reference to the Planning Division shall be necessary in the following

cases:
a) Proposal involving re-appropriation from "Development" to

"Current Expenditure" portion of foreign exchange budget and
vice versa. As a general rules, such re-appropriation will not be
allowed.


BUDGET MANUAL
b) Proposals involving re-appropriation from "Imports" to "Invisibles"

and vice versa.
c) Proposals involving expenditure on items not included in the

foreign exchange budget.
d) Proposals involving expenditure on entertainment and other

contingencies. -
e) Travel by foreign carriers where PIA flights operate.
f) Proposals which require approval of the Finance Minister or the

Cabinet under the existing rules or orders.
g) Any other proposals not covered by a general or specific

delegation.
h) All proposals for visit abroad involving expenditure on the part of

Government of Pakistan/WAPDA.


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9 THE BUDGETING (ESTIMATION) PROCESS

9.1 CAPITAL EXPENDITURE-ASSETS
The expenditure on development schemes is divided in two segments, one the

assets which are directly capitalized at the time procurement and the other the
capital work in progress which is capitalized after completion of the project. All
assets that are to be purchased for the project are provided at the estimated
procurement cost for the purposes of budgeting. The various heads of capital
expenditure are discussed below:
9.1.1 Plant and Machinery
The cost of acquisition of construction machinery such as cranes and rigs etc.,
needed for the projects which either as a result of contractual obligation has to
be provided by WAPDA to the Contractors or the execution of works on the
projects are envisaged departmentally will be provided. The cost of plant and
equipment will be based on purchase order/contract agreement if since
entered into with the suppliers or if otherwise an estimated cost, on the basis
of market rates or proforma invoice/quotations obtained will be worked out.
9.1.2 Camp Equipment
All temporary camping facilities and equipment to be purchased for the project
will be provided under this head. This shall include tents etc required for
setting up the facility.
9.1.3 Laboratory Equipment
Laboratory equipment for soil and other testing to be purchased for the project
will be provided under this head.
9.1.4 Photographic Equipment
Photographic equipment to be purchased for the project will be provided under

this head.
9.1.5 Arms Ammunition
The costs of arms and ammunition to be purchased for security at the site shall


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be provided under this head. These shall be based on the market price of the
type of arms and ammunition being proposed.
9.1.6 Computer & Ancillary Equipment’s
The cost of computers, laptops, printers, scanners and other allied equipment
shall be provided under this head. The amounts shall be based on latest market
price.
9.1.7 Electrical Equipment
All electrical equipment to be purchased for the project will be provided under
this head.
9.1.8 Office Machines And Equipment
The total number of machines and equipment in office should be indicated with
its distribution and justification for the purchase of new machines and
equipment.
9.1.9 Drawing and Survey Instrument
All Drawing and Survey Instruments to be procured for the project office shall
be provided under this head.
9.1.10 Residential Furniture And Fixture
The residential furniture and fixtures will be provided for the Expatriates of
Consultants according to the terms of the agreement. The details of the
furniture to be provided will be spelled out. The furniture for the Rest House
will also be provided under this primary unit of appropriation.
9.1.11 Non-Residential Furniture And Fixtures
Details of anticipated purchases to be made during the financial year may be

given with distribution, justification, and position of sanctioned estimates.
9.1.12 Tools and Plants including Miscellaneous T&P
Provision for Tools and Plants and miscellaneous T&P for use on project will be
made according to the estimated requirements.


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9.1.13 Library Books
All books technical and others specifically required for the project shall be
provided under this head.
9.1.14 Utility Vehicles
The provision for all types of standardized new vehicles to be acquired will be
made keeping in view the actual requirements. The list of vehicles already on
the project or with an organization will be furnished showing their distribution
and the distribution of new vehicles to be acquired. The provision for non-
standardised vehicles may also be made giving full justification for the same
9.1.15 Mandatory Spare Parts
Provision for mandatory Spare Parts for machinery, equipment etc., will be
made according to the requirements on the basis of proforma
invoice/quotations.
9.2 CAPITAL WORK IN PROGRESS
The construction period of large projects spreads over a number of years.

Therefore all expenditure on construction, fabrication, procurement, imports etc is
charged to a work in progress account. After completion of the project the account
is closed and transferred to the respective head of the asset. The various heads
under capital work in progress comprise of the following:
9.2.1 Land Acquisition/Compensation
Land acquired on lease and that purchased under the Land Acquisition Act will
be accounted for under separate primary unit of appropriation viz; Land Lease
Hold and Free Hold.
9.2.2 Main Civil Works
The provision for main civil works relating to power houses, control room
buildings of grid stations and foundation for towers for transmission lines will
be made-under the respective primary units of appropriation. These provisions
will be based on the contract agreements entered into with the Contractors and
the schedule of work or each component of work as programmed. The details of


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the civil works proposed and the physical targets to be achieved will be
furnished in the explanatory memorandum accompanying the budget estimates.
9.2.3 Power Generation Units
The provision for the various components of the powerhouse machinery will be
made under the respective primary units of appropriation according to the
targets to be achieved during the financial year and the schedule of shipment
of the material. The powerhouses are usually installed on turnkey basis, but the
provision for the plants and equipment imported in each year has to be made
and reflected in the budget estimates.
9.2.4 Maps and Other Survey Documents
The details of anticipated requirements should be indicated along with the

progressive figure of expenditure till the end of the out-going financial year.
9.2.5 Preliminary Expenses-Survey and Investigation
Expenditure envisaged on account of preliminary expenses including survey and

investigation on a project will be budgeted under this sub-head.
9.2.6 Buildings
The provision for all types of buildings, i.e. residential, non-residential and
temporary including site improvement, roads, canals and railways etc., will be
made according to the schedule of work and the contract agreement entered
into with the Contractors.
9.2.7 Canals, Minors/Distributaries, Disposal/flood carrier channels, water

courses
The provision for water canals/distribution works will be made keeping in view
the targets to be achieved during the financial year. The cost of the works to
be undertaken at the rates which are normally charged/paid for similar work
shall be provided under this head for each work. The breakdown of various
components of these works will also be quantified in the explanatory
memorandum giving individual details of the physical targets to be achieved
and the allocation asked for each component.


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9.2.8 Dam Construction
The provision for the cost of dams on the basis of cost estimates based on
previous works done and escalation factors to cater of increase in cost of
various components shall be budgeted under this head. The breakdown of
various components of these works will also be quantified in the explanatory
memorandum giving individual details of the physical targets to be achieved
and the allocation asked for each component.
9.2.9 Electrical and Mechanical Works
These relate to the electrical and mechanical components of works being undertaken. The
costs are booked on the basis of agreements entered with the electrical and mechanical
contractors.
9.2.10 Transmission & Transformation Equipment
The provision for the transmission and transformation equipment will be based
on the contract price agreed with the contractors. This shall be based on the
time when the same is to be installed.
9.2.11 General / Plant Assets
The cost of general plant and equipment will be based on purchase

order/contract agreement if since entered into with the suppliers and proforma
invoice/quotations obtained or if otherwise an estimated cost on the basis of
market rates.
9.2.12 Interest Charges Loans
The interest charges on loans are payable from the date of disbursement of
such loans but for the purpose of budget provision, the interest charges on the
estimated disbursement relating to that year will be made at half the rates.
The interest on the actual disbursement made up to 30th June of the preceding
year will be calculated at full rate. The amount so calculated shall be provided
in the budget estimate.
9.2.13 Consultant Fee And Other Expenses
The Consultants Fees and other expenses will be provided according to the
terms of agreement entered into with the Consultants and will include the
living expenses of the Expatriates.


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9.2.14 Custom Duty, Sales Tax And Port Clearing Charges
The provision on account of Custom Duty, Sales Tax and Port Clearing charges
will be calculated on the basis of the tariff laid down for Custom Duty, etc., by
the Federal Government and as notified in the official Gazette. In calculating
the custom duty and sales tax, of the plant and equipment which will be
imported during that year according to the delivery schedule as given in the
relevant Contract Agreement will be kept in view. The Custom Duty and Sales
Tax on vehicles and tools and plants will be provided if these are intended to
be imported from foreign countries and specific provision therefore has been
asked for against the relevant unit of appropriation. The breakup of Custom
Duty and Sales Tax for the various items to be imported will be clearly given in
the explanatory memorandum accompanying the budget proposals.
9.3 Project Management Expenses
The project management expenses comprise of the following expenditures:
9.3.1 Pay And Allowances Of Officers and Staff Including Leave Salary
1. Provision in the nominal rolls (formats at Annexure-P2-L) will be shown in

accordance with the sanctioned strength. If and where a post has remained
vacant, the period may be specified in the remarks column and no provision
made therefore in column 5. Where a post remains vacant even at the time
of preparing the budget, the estimated date of filling the post be indicated
and provision made accordingly at the average rate of maximum and
minimum of the scale.
2. For example, if the revised estimates are submitted to the Authority in

November and sanctioned post is lying vacant, provision in the revised
estimates will only be made for 8 months in column 5 and not for 12 months
and if the scale is 400 to 1,000, the monthly rate of pay will be calculated
@ (400+1,000)/2= Rs 700 P.M. As for new posts required due to expansion of
work or enlargement of programme, a lump sum provision up to 1 percent
of pay of officers and Establishment may be made under the respective sub-
heads if necessary, with full explanation for such provision with necessity
therefore. No provision should be made for posts regarding which it has


BUDGET MANUAL
been decided to keep them unfilled or to hold them in abeyance; but where
it is desired to review any of these posts, sanction of the competent
authority should be obtained before making any provision in the estimates
on this account and a copy of the orders enclosed in support. Liveries
3. Cost of liveries to be supplied to the liveried staff will be provided

according to the scale laid down by the Authority for various categories of
employees to whom the liveries are to be supplied during the financial year.
9.3.2 Honoraria, Over Time And Off Day Wages
Provision for honoraria etc., will be made on the basis of past actuals or the
estimated amount that will be required to meet the requirements under these
primary units of appropriations.
9.3.3 Medical Expenses
The provision for Cash Medical Allowance will be made in respect of those
WAPDA Employees who have opted to draw cash medical allowance. The
provision for medical expenses will also be made for those not opting for cash
medical allowance and fee for those not entitled to Cash Medical Allowance on
the basis of past actuals and the sanctioned strength of officers/establishment.
9.3.4 Leave Salary And Pension Contribution
Provision should be made at 2/12th of the pay for Government officers and
staff on deputation to WAPDA, provided their terms of deputation require the
payment of L.S. & P.C. being made by the borrowing department (WAPDA) to
the lending departments (respective parent departments of the deputationists.)
Note:- This budget head is different from Leave Salary of WAPDA Employees
and should not be confused with it.
9.3.5 Group Life Insurance
The contribution to be made by the Authority on this account will be provided

against this primary unit of appropriation.
9.3.6 Free Energy Supply To Staff
The provision under this primary unit of appropriation will be made with


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reference to the Authorized number of units’ up to which free energy is

admissible to each category of employees. This provision is meant for accepting
debit to be raised by the respective supervisory office/accounting unit/General
Manager Finance against various DDO and Organizations whose employees are
authorized for free supply of electricity.
9.3.7 Pension And Gratuity
The provision for Pension and Gratuity charges will be made by the office of the
respective General Manager Finance of Water and Power Wings. The provision
will be made on the basis of annual establishment returns which will be
submitted by the Chief Engineers and Heads of Projects in respect of officers
and staff who will be retiring in the next financial year by first September each
year.
9.3.8 Employees share in fund contribution
Provisions for contribution towards post retiring benefits like pension, free
medical and free electricity, to the pension funds as per prescribed rates are to
be made under this head.
9.3.9 Traveling Allowance
The provision should be made on the basis of past actuals with reference to
estimated traveling on tour on the basis of workload. The actual expenditure in
the last two years together with a brief explanation of any abnormal variations
should be given.
The provision for transfer grant will be made on the basis of past actuals and
anticipated transfers that will be effected during the course of financial year.
9.3.10 Rents, Rates And Taxes
1. This head should include the requirement of funds for following items of
expenditure:
i) Payment of rent of office/residential buildings hired by office

concerned.
ii) Note:- In case of residential buildings the amount payable by WAPDA

less recoveries of rent from resident officers etc. is to be provided.


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iii) Water conservancy, gas and electricity charges in respect of office

accommodation.
iv) Local Taxes of WAPDA Buildings payable by the offices concerned.
2. Demand of Funds for items (a), (c) and (d) above should be made on actual
amount payable and for item (b) on the basis of average monthly
expenditure in the past.
9.3.11 Audit Fees And Expenses
Provision under this head is only made for payment to Commercial Auditors
where required as a condition by the foreign loaning agency.
9.3.12 Telephone Charges
The provision for telephone charges both for office and residential will be made
according to the monetary limits prescribed for such telephones by the
Authority. The expenditure incurred in the past three years will also be kept in
view while making provision against this primary unit of appropriation.
9.3.13 Education Cess
Education Cess is payable in respect to workers other than those employed in

supervisory capacity as defined in the Workers children (Education) Ordinance,
1972. The cess at the prescribed rates is payable to the respective Provincial
Governments under the ordinance as aforesaid and provision will be made
accordingly.
9.3.14 Maintenance And Running Of Vehicles
The provision for expenses of POL and other vehicle running expenses such as
repairs replacement of tyres and tubes will be made under separate units of
appropriation i.e. POL and other Expenses respectively. This is to ensure better
control on the maintenance and running of vehicles. The use of vehicles must
be in conformity and not disproportionate to be departmental and field
activities as programmed. This call’s for application of strict control over the
use of vehicles and the provision for them should, therefore, be made, keeping


BUDGET MANUAL
in view the need for economy in the use of vehicles.
9.3.15 Running And Maintenance Of Utility Vehicles
Cost of running and maintenance of utility vehicles will be provided separately

on account of POL and other maintenance expenses including the provision of
replacement of tyres and tubes.
9.3.16 Running and Maintenance Of Plant and Machinery
Cost of running and maintenance of plant and machinery will be provided under
this head on the basis of estimated time of the project.
9.3.17 Work charged Establishment
This primary unit of appropriation has been designed to budget the cost of
work-charged establishment. The work-charged establishment should be
provided keeping in view the barest minimum requirement for carrying out the
works departmentally. The provision of work-charged establishment, in any
case, should not exceed 10 percent cost of works.
9.3.18 Repair And Maintenance Of Residential And Non-Residential

Buildings
This includes the estimates of repair of buildings (both owned by WAPDA or

leased with liability of WAPDA to repair and maintenance thereof) indicating
the sanctioned amount of annual repair estimates against each building.
9.3.19 Stationery And Printing
Very conservative estimates should be prepared to exercise strict economy

under this head. The stock of stationary in hand at the close of the outgoing
year should be fully kept in view while working out further requirement for a
year. The assessment of the estimates should be made on the average actual
expenditure during the last three years, subject to applications of inflator or
deflator as the works programme tends to increase or decrease relating to the
period or which budget is prepared.
9.3.20 Entertainment Charges
The entertainment charges will be provided according to the scale laid down by


BUDGET MANUAL
the Authority for such entertainment and shall be based on the average
expenditure incurred during the preceding year.
9.3.21 Postage and Telegrams
The requirements for Postage and Telegram should be worked out on the basis
of average actual expenditure during the last three years.
9.3.22 Other Contingencies
Provision under this head should be made for;
i) Repair of computers.
ii) Repair of furniture.
iii) Hot and cold weather charges.
iv) Books and periodical.
v) Local transport charges.
vi) Curtain for office.
vii) Any other expenses not specified above, but which are essential for
the up keep of office to ensure its smooth and efficient functioning.
9.3.23 Authority Overheads
The expenses of the Authority and its central offices are met as overhead cost
charged to the cost of projects of Water and Power wings at specified rates.
Separate overhead rates have been allowed by the GoP and notified by the
Authority to be charged as fixed percentage of the total budget allocation for
projects of Water and Power Wings. Requirement to finance overhead costs is
monitored periodically and revision if any needed, is taken up to Ministry Water
and Power by B&C through Member (Finance).
9.3.24 Supervisory Expenses
The supervisory expenses of General Managers and Chief Engineers are met
through provision in the budget allocation of the respective water and power


BUDGET MANUAL
projects. In case of Water Wing the supervisory offices budget is funded

through the following ways:
i) Chargeable to Water Wing Overheads at the rates approved by the GoP.
ii) On service rendered basis in proportion to PSDP allocation of the project

in the region and sharing as approved by the Authority / Member
(Water)
In Power Wing actual expenditures of supervisory offices are allocated to hydel

power stations on the basis of installed capacity of the respective power
station.
9.3.25 Depreciation
Provision for the Depreciation charge against the assets in use, shall be
provided on the basis of approved rate of depreciation. The actual depreciation
charge for the previous year shall form as a basis for these estimates.
9.3.26 Telephone And Carrier System
Provision for telephone and carrier system will be made against this primary
unit of appropriation. The cost of construction on account of telephone
equipment will also be included under this unit of appropriation.


BUDGET MANUAL
10 MEDIUM TERM BUDGETARY FRAMEWORK

10.1 INTRODUCTION
Medium Term Budgetary Framework (MTBF) is a system for making the budget
process strategic and responsive to the priorities of the government, by introducing
a medium term horizon to the budgetary process which is at present set at 3 years
time frame.
The objectives of the MTBF are:
i) To further strengthen the fiscal discipline in the management of the
budget of the federal government;
ii) To strengthen the alignment of budgetary allocation and expenditures
with the policies and priorities of the government; and
iii) To strengthen the process of budgeting and budget resource management
within the ministries so as to ensure efficiency and cost-effectiveness of
the use of public sector resources by line ministries/divisions in the
delivery of public services.
10.2 MTBF AS A TOOL FOR MODERNISATION OF THE BUDGET SYSTEM
Initially the MTBF process focused on the budget preparation stage of the wider
budget process, up to the point where the budget is appropriated by the National
Assembly. However, in true perspective the reforms introduced under the MTBF
will eventually affect all stages of the budget cycle and all stakeholders in the
federal budget. The MTBF reforms are one element of a package of reforms which
together are intended to modernize budget management across the federal
government. It is expected that the modernisation of the budgetary process, will
take some years to implement. The process is oriented towards the following key
objectives:
i) making the budget a flexible and responsive mechanism for carrying

forward the policies, strategies and priorities of the government;
ii) introducing a progressive process of the empowerment of the line

ministries, which are responsible for the delivery of public services, to


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manage their own budgetary cycles in an overall context which provides the
maximum achievable level of predictability of resource flows
iii) Shifting the role of the central agencies (Ministry of Finance and the
Planning Commission) in budget management from micromanagement of
transactions to strategic management of the application of resources to
achieve results.
10.3 DIFFERENCE BETWEEN MTBF AND TRADITIONAL BUDGETING
10.3.1 The Traditional Budgeting System
1. Under the traditional process of budgeting and costing in Pakistan, prior to

the MTBF process, the system followed was very largely one of incremental
budgeting (particularly so for the current budget). Following the issue of
the annual Budget Call Circular (BCC) in September or October, the line
ministries instructed their Fund Centers (Spending Units) to prepare their
proposed budgets for the forthcoming budget year. The methodology
whereby the SUs prepared their budgets was:
i) Based on expenditures and any supplementary appropriations granted

during the first half of the year, to prepare Revised Estimates for their
Fund Centre (Spending Unit). The Revised Estimates are derived from
the original budget allocation as set out in the Appropriation Accounts,
with an allowance for the expected impact of anticipated
Supplementary Budget appropriations which are expected to be made
during the current year;
ii) The budget for the coming year is then calculated on the basis of a
forward projection of the Revised Estimate using a growth factor; SUs
were not provided with an indicative budget limit within which they
should prepare their estimates;
iii) The budget proposals thus prepared by the SUs are submitted to the
Budget Section for the current budget and P&D Section for
development budget for scrutiny and internal approval;


BUDGET MANUAL
iv) Once approved the ministry’s budget proposal is submitted to the

Financial Adviser/Deputy Financial Adviser in the ministry. Typically
the FA/DFA recommends a series of cuts in the budget proposal;
v) Adjustments are made to accommodate the instructions of the FA/DFA

and a revised budget is then submitted to Finance Division (Expenditure
Wing) for approval.
2. While the traditional budgeting system has the advantage of familiarity, its
shortcomings are generally well recognised, and include:
i) Focus only on the next immediate year. This leads to inadequate

predictability of resources over the medium term with the result that
ministries are unable to undertake proper medium term planning for
the delivery of services;
ii) The lack of any requirement for ministries to demonstrate the linkage
between the strategies and priorities of the ministry and its actual
budget as part of the preparation process;
iii) The bifurcation of the current budget preparation process and the
development budget preparation process to the extent that it is
difficult to see how the two relate to each other;
iv) The tendency to use simple incremental budgeting based on the

previous year’s budget without any careful attention to the costing of
individual line items or services;
v) The extensive use of cuts in the proposed current budgets by the

FAs/DFAs late in the budget preparation process, which means that
the final approved budget may bear little relation to the budget
proposal prepared by the line ministry;
vi) The generally limited role of the senior management of the ministry
faced with the arbitrary initial budget preparation process and the
cuts applied to the budget proposals as it passes to final approval and
appropriation.


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10.4 MTBF PROCESS
1. MTBF comprises of two main components:
i) the “top-down” component, which aims at strengthening the overall

management of resources in the federal budget and the alignment of the
allocation of budgetary resources to ministries on the basis of government
policies and priorities; and
ii) the “bottom-up” component which aims to strengthen the budgetary

management process within the line ministries/division.
2. The MTBF involves preparation by line ministries of three-year

expenditure estimates within the ceilings provided by the Ministry of
Finance (for the recurrent budget) and by the Planning Commission (for
the development budget). Each year, the MTBF process involves the
rolling forward of the previous MTBF estimate by one year and the
addition of a new outer year. As shown in the figure below, the MTBF
and annual budget are not two separate processes; the annual budget
represents the first year of the MTBF.


BUDGET MANUAL
PART – II
NON-DEVELOPMENT BUDGET


BUDGET MANUAL
11 NON-DEVELOPMENTAL BUDGET
11.1 INTRODUCTION
1. This part of the manual sets out the Non Development Budget procedure to
be followed for preparation of operating and maintenance expenses, income
estimates etc., by all wings of the Authority. Each year the manual is
reviewed to reflect changes in budget policy and budget format. The
respective General Manager Finance is responsible for all amendments and
revisions.
2. Budget policies are defined by the Authority and communicated each year in
a budget planning directive by the Member (Finance). The budget policies are
derived from the Authority's 5 Years plan and from directives issued by the
Federal Government.
3. Non-development budgeting relates to the formations engaged in operations

and management or providing of services as self finance accounting units.
These are following:
i) Hydel power operation & Maintenance
ii) Common Services/self financing units
iii) Supervisory Offices
11.2 PROCEDURE FOR PREPARATION OF BUDGETS
1. Budgets are prepared for each activity for which there must be a statement of
objectives and an operating plan. Objectives are stated in general terms,
indicate the level of activity in the coming year and state clearly what is to be
achieved. The operating plan is a statement showing how the objectives will be
achieved and change in resources is required to affect the plan.
2. The following general rules for budget preparation will be followed.
i) a preliminary forecast, under main account headings will be prepared for

initial approval by the Authority,


BUDGET MANUAL
ii) overall objectives will be set by the authority,
iii) detailed objectives will be delegated to individual managers.
iv) individual managers will prepare budgets for consideration of, and
discussion with, senior management.
v) budget will be matched to objectives before presentations for final

approval.
vi) senior management will present the budget proposals for authority
approval.
vii) after approval by the authority budgets will be communicated to all levels
of management before the new financial year commences.
3. Before the commencement of budget preparation, the General Managers will

instruct each principal budget holder to draft his own budget objectives for
approval. When he receives the draft, each General Manager will review the
objectives in line with the policy of the Authority and present them to the
respective Member, who will then issue his directives for budget preparation,
setting the objectives to be achieved and the general budget policy to be
followed. The statement of policy will deal with the following.
i) deficiency and weaknesses in the present year’s budget and steps to be

taken to overcome them.
ii) budget objective for the year under plan.
iii) the resources available/outline guidance/major items
a) operating plans
b) capital expenditures limits and priorities particularly relating to

ongoing civil work schemes.
c) Restriction on foreign currency


BUDGET MANUAL
d) Personnel
e) Maintenance
f) Expense levels, and rates to be used for inflation and for growth
g) Cash availability and its effects on creditors, debtors and store

levels.
h) Procurement
iv) General guidance to be followed in the light of austerity/economic

measures (if any) issued by the Federal Government.


BUDGET MANUAL
12 HYDROELECTRIC - O&M BUDGET

WAPDA residual power wing is basically engaged in undertaking power generation
from Hydel sources. It operates the power houses built on the Dams, run of river
and channels. The non development budget of Power wing relates to the
operations and maintenance of these resources.
12.1 BUDGET FORMS & STATEMENTS
Hydroelectric budget is prepared on the following budget forms:

i) Statement of Objectives
ii) Operating plan
iii) Schedule of personnel costs
iv) Departmental services
v) Planned and routine maintenance
vi) Major maintenance
vii) Operating expenses
viii) Office administrative expenses
ix) Transport operating cost
x) Budget explanation/ justifications
xi) Power sales income
xii) Misc income
xiii) Loan interest and principal payables
xiv) Depreciation
xv) Estimated stock levels
xvi) Capital expenditures
xvii) Employees loans
xviii) Income and expense statement
xix) Cash flow projection
xx) Projected balance sheet
xxi) Cash flow budget phasing statement
xxii) Commitment record


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xxiii) Foreign exchange summary

The office of GM Finance (Power) will review and issue updated formats to the
Hydel power formations for preparing annual budget estimates.
12.2 GENERAL ESTABLISHMENT EXPENSES ACCOUNT
General Establishment Charges budget will be prepared on the Model Budget Form
at Annexure P2 (A to M). The coding list as appearing in the Annexure-P2-A is the
same as has been prescribed for the preparation of budget of administrative
charges of developmental expenditure. The instructions contained in the relevant
chapter for preparation of budget of administrative expenses under developmental
charges will apply mutatis mutandis to the preparation and submission of budget of
general establishment charges.
The expenditure on account of general establishment charges is apportioned

between Revenue, Capital Investment Account and the Construction projects
according to fixed percentage as approved by the Authority from time to time.
12.3 OPERATING EXPENSES ACCOUNT
The operations expenses shall include the following:
12.3.1 R & M - Power Generation Plant Assets
Expenditure on account of maintenance of various components of the power

houses machinery will be booked under the primary units of appropriation as
indicated in the PSDP model budget form. This expenditure will mainly be on
account of over-hauling, maintenance of equipment, repairs, cost of spares,
inspection charges and salaries and allowances of personnel if engaged for such
works. The requisite details for the proposed expenditure will be furnished in
the explanatory memorandum accompanying the budget proposal.
12.3.2 R & M - General /Plant Assets
Same procedure shall be followed as for estimation of expenditures under

maintenance of power generation plant assets.


BUDGET MANUAL
12.3.3 Maintenance Power - Fuel And Lubricants
The provision for oil and lubricants will also be worked out on the basis of the
proposed maintenance. Detailed calculations made in support of this provision
will be supplied in the explanatory memorandum accompanying the budget
proposals.
12.3.4 Repair and Maintenance of Dam/Reservoir
The expenditure under this sub-head will also include expenditure on account
of water channel and tail race. This will be based on the value of contracts
entered or the expenditure estimates prepared by the planning and
development department.
12.3.5 R & M - Civil Works on Freehold Land
The estimates shall be based on the plan for repairs and maintenance of the
buildings, other civil works and physical property.
12.3.6 Lease rentals
The expenditure under this sub-head will include the lease rentals payable
during the next year.
12.3.7 Ijarah Rentals
The expenditure under this sub-head will include the Ijarah rentals payable
during the next year.
12.3.8 Insurance
The expenditure under this sub-head will include the insurance charges
payable to WEPS on all assets insured by WAPDA as per its existing policy.
Provision for insurance charges for other assets not covered under WEPS shall
also be made under this head.
12.4 DEBT SERVICING
This includes the repayments of the installments of long term loans, repayment of
foreign loans(relent or direct), Ijarah rentals, and lease rentals


BUDGET MANUAL
12.5 HYDEL LEVIES
Under this head the following shall be included:
i) Net hydel profit payable to the provinces under article 161(2) of the
Constitution of Pakistan, where Hydel power station is located, at the rate
to be determined by Council of Common Interests (CCI).
ii) Water charges are payable to Government of Azad Jammu & Kashmir
Government and Government of Gilgit Baltistan as per agreement signed
with respective agency.
iii) IRSA charges as levied by IRSA/GoP at the determined rate by GoP for hydro
power generation.IRSA letter No.A-II-6/10/2010-IRSA dated 25-08-
2011.)
12.6 INCOME BUDGET
12.6.1 Sale of Power
1. As provided in clause 25 of the WAPDA Act 1958, the Authority shall

ordinarily sell power in bulk. Further the rates at which the Authority shall
sell power shall be so fixed as to provide for meeting the operating costs,
interest charges and depreciation of assets, the redemption at due time of
loans other than those covered by depreciation, the payment of any taxes
and a reasonable return on investment which WAPDA holds.
2. The revenue budget starts with providing of dependable electricity

production estimates for the next financial year compiled by each Project
Head. The estimates for generation of electricity are worked out by the
Chief Engineer, Load Dispatch Centre, keeping in view the firm capability of
the Hydel Power Stations. Once the figures for available power have been
confirmed by the concerned General Manager, the GMF (Power) will
proceed to prepare the revenue budget.
3. The budgeting of revenue from sale of electricity is based on the rate that
may be allowed by NEPRA on the basis of a petition that is filed by WAPDA.


BUDGET MANUAL
This rate is then formalized through a notification by the Ministry of Water

and Power. The notified rate remains applicable till a new notification is
issued by the Ministry. The tariff/rate allowed by NEPRA is based on two
components namely a fixed charge and a variable charge.
12.6.2 Miscellaneous Income
Under this head the expected amounts from commission on collection on behalf
of Government, sale of scrap, sale of stores including application fees and
departmental charges, sale of ashes, trees, grass, etc. are shown. Also grouped
under this head are expected receipts of dividend from subsidiaries, markup on
bank investments, sale of tender documents and other miscellaneous income.
The estimates are prepared on the basis of the actual receipts under each
account for the preceding year after taking into account variations affecting
increases and decreases in income under the various components as mentioned
above.


BUDGET MANUAL
13 SELF FINANCING OF PROJECTS/WORKS

13.1 CAPITAL EXPENSE
The capital expenses of the Hydro electric include the costs on projects in progress
and may include expenses under the following heads:
i) Land/re-settlement
ii) Building and Civil Works
iii) Power Generation Plant Assets
iv) General Plant Assets
v) Office Equipment
vi) Furniture and Fixtures
vii) Vehicles
viii) Other Physical Property
13.2 CAPITAL WORKS, FINANCED FROM REVENUE
The provision of works of capital nature which are not catered for in the capital
budget (developmental) will be made against this sub-head. These would include
additional civil work, such as construction of additional residential and non-
residential building and additional civil works at the projects under operation
necessitated due to operational requirements. Full details of such works will be
furnished explaining their necessity and justification in the explanatory
memorandum. It will also be mentioned therein whether these works have had the
administrative approval of the competent authority. The proposal will further be
supported by sanctioned detailed estimates.
13.3 SELF SOURCE FUNDING
1. The ECNEC/NEC has approved a procedure of Self Financing Development

Schemes to be undertaken by Autonomous organisations. According to the
approval the autonomous organizations whether commercial or non-commercial
having board by whatever name called, are competent to sanction their


BUDGET MANUAL
development schemes with 100% self-financing with no government guarantee

and involving less than 25% foreign exchange/foreign assistance. This is subject
to the following conditions:
i) A Development Working Party should be constituted by each organization

and notified to consider and approve their self financed Projects.
ii) The Development Working Party should be headed by the Chairman/head

of the Organisation and; among others should include representatives -of
the Planning &Development Division, Finance Division and the concerned·
Ministry/Division each not below the rank of Joint Secretary.
iii) The quorum of the Development Working Party would be incomplete

without the presence of either representative of the Finance Division and
the Planning &Development Division. In case either of these divisions does
not agree to the project proposal or any aspect thereof, the case would be
referred to the CDWP for consideration.
iv) The decision of the Development Working Party will be subject to the
endorsement of the board of the organization.
2. As provided in the guidelines for this process the Authority has constituted the
following Working Committee:
i) Chairman WAPDA
ii) Member (Finance)
iii) Member (Power)
iv) Member (Water)
v) Grade-20 officer nominated by Ministry Water & Power (P&D
Division)
vi) Grade-20 officer nominated by Finance Division)
3. The Authority has directed that the PC-1 for all such schemes shall be
scrutinized by the Planning Department of respective Wing and cleared from
the respective Member before submission to the Working Committee.


BUDGET MANUAL
14 PHASING OF BUDGETS
14.1 MONTHLY PHASING OF INCOME AND EXPENSE BUDGET
1. Proper control over the budget is obtained by phasing income and

expenditures of each accounting period. Correct phasing is necessary
for two main purposes.
i) To provide realistic monthly budget figures
ii) For expenditure and income against which the actual is the same each
period can be compared,
iii) To enable cash requirements to be forecast accurately for each month.
2. The principals to be followed for monthly phasing the budget into

accounting periods are:
i) Routine regular expenditures will be apportioned on when due/time

basis
ii) Large item of regular payments will be provided for cash flow purposes
in the accounting period in which payment is due, for example fuel,
rates, taxes, bank and loan interest and repayments, etc and may be
phased over more than one month for expenditure control purposes.
iii) Special payments for large items e.g. a major maintenance project, or
a major procurement will be phased for cash flow purposes into the
period in which payment is due, and for accounting purposes into the
months in which the work is done,
iv) Capital expenditures will be phased according to the work plans and
cash flows.
v) Regular income and cash receipts will be apportioned on a due/time

basis,


BUDGET MANUAL
Non-recurring cash receipts will be phased when payment is due to be

received, for example, external and government loans.
3. Each principal budget holder is responsible for ensuring that phasing of

budget is done correctly.
14.2 MONTHLY PHASED CASH FLOW BUDGET
Phasing of each cash flow has different implications from income and expenditure.
Whereas the budgets for the later are phased in order to bring about realistically
apportioned statements of account, the purpose of cash flow phasing is to plan
forward the receipts and disbursements of cash so as to make the best use of
periodic resources and to be able to meet foreseeable peaks of expenditures.
14.3 STOCK LEVELS
Stock holding at hydroelectric station is subject to control through minimum and

maximum levels and total inventory value. Each hydroelectric station will be given
a stock level target to be achieved through budgetary control over procurement
material usage. The plan to achieve the target levels will be reviewed each month
by principal budget holders.


BUDGET MANUAL
15 CASH FLOW BUDGETING

WAPDA hydroelectric of Power Wing prepares a cash flow budget based on the
estimated cash that would be available from operations. The source of funds is the
Revenue to be earned from Sale of Power, which is calculated on basis of Fixed
Charge and variable charges plus General Sales Tax. The major components of Cash
flow projections are:
15.1 EXPECTED REVENUE TO BE EARNED
i) Sales revenue recovery per quarter
ii) Other income
15.2 REVENUE APPLICATIONS
i) Operating Expenses
ii) Capital Expenditure
iii) Repayment of loans and Interest
iv) Hydel Levies
v) Store Purchases
vi) Employees Long term Loans
vii) Investments
viii) Advances to Self Financing Units
15.3 SURPLUS AVAILABLE FOR SELF SOURCE FUNDING OF POWER

DEVELOPMENT PROJECTS
The balance available from net expected revenue after applications

represents the amount expected to be available for investment in power
development projects.
A specimen of the Cash Flow Projections is given in Annexure P3


BUDGET MANUAL
16 SELF FINANCING UNITS (SFU)

1. The budgeting for self financing units will be based on the expected quarterly
targets and the service rates to recover cost of the following:
i) Operating expenses
ii) Direct Material
iii) Direct Labour
iv) Overheads
v) Income/Margin on Services
2. The process of budgeting by SFUs is based on the under mentioned basic points:
i) The self financing unit recovers actual operational and establishment cost
including Supervisory overhead and Authority overhead at predetermined
rate, from time to time, from the formations receiving the services on
actual need basis. Any over/under applied expenses of said self financing
unit are adjusted at the time of determining service charge rate for the next
year by the GM/DG Finance of respective wing. Additionally any income
from deposit with banks is taken into account to forecast the margins for the
unit
ii) Purchase of physical assets of a self financing unit is financed by GM/DG

Finance of respective Wing, which is repaid by the self financing units by
charging depreciation and return on investment (ROI) in the service charges
to the beneficiary formations. While determining the service charges rates
of a self financing unit for a financial year, the ROI will be added to the
operational & establishment budget estimates of the concerned self
financing unit @ 15% of the written down value (net operating value) of the
fixed assets financed by the GM/DG Finance of the respective wing. The
written down value of assets will be taken as base of working of ROI as
appearing in the Trial Balance for the month of June of last year.
iii) The store inventory, employee’s house building/purchases of plot and

purchase of vehicle loan are also financed by the GM/DG Finance of


BUDGET MANUAL
respective Wings and self financing unit will repay the same by recovering
the cost /loan from the clients and the employees as the case may be as per
prescribed terms.
iv) The GM/DG Finance of respective wing will fix working capital limits of each
self financing unit to meet with funding needs for purchase of inventories
and other cost incurred before receipt of services revenue by the self
financing unit. The deficit and surplus of cash balance from the working
capital limits fixed will be monitored and supported by the GM/ DG Finance
of respective wing.
v) In case, certain assets of a self financing unit are purchased through

obtaining loan from the commercial bank, these assets and loan will be
accounted for in the books of accounts of that self financing unit. The
concerned self financing unit will be responsible to repay the loan along
with interest out of the funds generated through levy of the services
charges. The self financing unit will retain proportionate share of
depreciation and Return on investment for the assets financed through said
loans to service the debt on schedule.
vi) In case, certain assets of a self financing unit are acquired through non
refundable Grants/ Aids, these assets and Grants/ Aids will be accounted for
in the books of accounts of that particular self financing unit and amortized
over the economical useful life of the said assets.


BUDGET MANUAL
17 COMMON SERVICES BUDGETING

17.1 Expense Budgeting
1. The Common Services (CS) is the third Wing of the Authority headed by the
Member Finance. The common services include the offices of the Authority,
office of the Secretary WAPDA, Accounts, Finance, Administration,
Education, Sports, Medical Services and many other allied offices.
2. Budgeting for Common Services (CS) is done on the same lines as detailed
for Self Finance Units. CS budget covers 27 Common Services Offices, 13
Centrally Paid Offices, 08 Accounting Units and 06 Self Finance Units.
Additionally the Medical Directorate WAPDA comprises of 42 Hospitals and
Dispensaries, which run on self-finance basis.
3. Budget Estimates are prepared on the basis of nominal roll, sanctioned

strength and last three years’ actual expenditure. The expenditure budget
includes pay & allowances of Officer & Staff, Travelling Allowance,
Honoraria/Reward, Employer Charges (Pension Fund & GLI), Medical
Charges (Hospitalization, Consultant’s fee, Medicine Drugs & Dressing etc.),
Rent, Rate & Taxes, Repair & Maintenance (Electrical & Civil), Office
Machine & Equipment, Audit Charges & Capital Works.
4. The Budget Estimates are prepared on annual basis and these are reviewed
by the B&C Directorate WAPDA bi-annually to make adjustments as may be
required.
17.2 Source of funding
1. The budget for common services is met by the office of Director General
Finance (B&C) WAPDA from the following sources:
i) Authority Overheads charged to water and power wings on approved

pre-determined rates.
ii) Miscellaneous receipts like rent of building, sale of stores/printed

material, Re-imbursement against security charges from NTDC,
Interest Income and other miscellaneous receipts.
2. The office of Director General Medical Services is a self-financing unit

operating some 42 medical facilities. It meets its expenses from charging
for medical services to all WAPDA formations and outsiders including
PEPCO, NTDC and others.


BUDGET MANUAL
3. Wapda Sports Board meets its budget requirements in the following manner:
i) Pay and allowances and all other office expenditure of the Board as
approved budget grant.
ii) Expenditure on Sport Activities are met through Annual Grant

sanctioned by the Authority and the profit/income generated from
Endowment Fund placed under the President WAPDA Sports Board


BUDGET MANUAL
18 NON DEVELOPMENT BUDGET- WATER WING

The water wing of WAPDA is not engaged in a business of generating any revenues
for the Authority as a part of its assigned mandate. It carries out projects of high
magnitude for other entities and also for Power Wing of WAPDA. All costs incurred
by it are recovered from the projects undertaken by it. The non-development
budget of Water Wing comprises of the expenses incurred by the supervisory
offices. The expenses are detailed below:
i) Pay and Allowances of Officers and staff

ii) Travelling Expense
iii) Honoraria/Overtime
iv) Pensionery Charges
v) Medical Expenses and Cash Medical Allowance
vi) Rent, Rate & Taxes
vii) Bank Charges
viii) Leave Salary
ix) Telephone Charges
x) Group Life Insurance
xi) Free Electricity
xii) Law Charges
xiii) Education Cess
xiv) Training Expenses
xv) R & M of Vehicles
xvi) Maintenance of Residential Building & Non Residential Building
xvii) Printing and Stationery
xviii) Advertising & Publicity
xix) Light, Heat & Power Charges
xx) Entertainment Charges
xxi) Liveries
xxii) Postage, Stamps & Telegrams
xxiii) Other Contingencies
xxiv) Computer Charges


BUDGET MANUAL
xxv) Consultant Fee

xxvi) Machine & Allied Equipment
xxvii) Library Books
xxviii) Plant & Machinery
xxix) Scientific Drawing Instruments
xxx) Office Machine &Equipment
xxxi) Furniture & Fixture
xxxii) Tools & Miscellaneous T&P
xxxiii) Vehicles


BUDGET MANUAL
19 BUDGETARY CONTROL
19.1 MANAGEMENT ACTION
1. The phased budget for each accounting period are shown in the
management accounts alongside the actual expenditures for the same
period. Both monthly and cumulative year to date figures are given. The
variance between budget and actual expenditure is calculated and
shown against each item in the accounts. With the assistance of his
accountant each budget holder will provide explanations for the
variances to his principal budget holder in writing, indicating also the
action he has taken to correct an adverse situation.
2. Budgetary control is operated by accounts/finance officers on behalf of

all budget holders and principal budget holders. Monthly statements
showing the actual expenditure against budget, and the variances are
prepared by accounts officers.
3. When overspending of a budget is likely to take place this will be

revealed in the monthly accounts in sufficient time for budget holders
and principal budget holders to take the necessary action to correct the
situation before the end of the financial year. Under-spending of a
budget will also be apparent and a decision can be made to free the
amount of the under- spending for re-allocation before the end of
financial year.
4. It is the responsibility of each B&AO, S.B&AO, Director B&A and Manager

Finance to draw the attention of the budget holder/ principal budget
'holder to whom he reports, to the variances revealed in the monthly
accounts. This report should be made in writing and also should contain
any suggestions or recommendations appropriate to each case. The
budget holder/principal budget holder will be responsible for initiating
the action required and will be held accountable to the Authority for
achieving the budget target. In the absence of other instructions issued


BUDGET MANUAL
from time to time to the contrary, the budget variances will be reported
in writing when the amount is 10%or more of the budget.
5. Neither budget holders nor principal budget holders have powers to

transfer amounts from one major budget head to another. Application
for authority to set off savings under one main budget head against
overspendings on other heads may be made when required to the
concerned General Manager Finance by principal budget holders only.
Under no circumstances can increases in income over budget be used to
offset overspending under expense heads.
6. In the case of under spending of a budget which has been released by a

principal budget holder for reallocation, this can only be done by the
respective General Manager Finance in consultation with the concerned
Member and the Member Finance.
7. When under spending of a budget has occurred and the principal budget
holder has not indicated that the amount is free for re-allocation, the
concerned General Manager Finance will obtain explanation from him
and make recommendations as appropriate to the concerned Member
and the Member (Finance).
8. The powers vested in different officers of the Authority, as provided in

the “Book of Financial Powers for Wapda”, shall be exercised by all
concerned in all matter. However the following conditions shall be
adhered to in exercise of powers for re-appropriation of funds:
i) The amount for which re-appropriation is required does not exceed

the monetary limit for which a competent authority is otherwise
empowered to accord administrative approval.
ii) Re-appropriation is not required to create new item for which funds
were specifically refused by the Authority.
iii) Re-appropriation does not entail any recurring liability for the
Authority.


BUDGET MANUAL
iv) Re-appropriation, if sanctioned is immediately reported to the next

higher administrative authority and the Accounts Officer concerned.
v) Restriction imposed by the Authority for re-appropriation of funds

from one project to another would continue to be enforce.
19.2 FORECASTING RESULTS
19.2.1 General
1. A forecast of the expected results, at the end of the year will be made
by each budget holder, so that such forecasts can be included in the
management accounts for the periods six, eight and ten. The forecasts
therefore will be submitted to the Budget and Accounts Officer no later
than seven days before the end of the accounting period concerned.
Before forecasts are commenced, the General Manager Finance will
issue general guidelines on assumptions to be made .e.g. any apparent
inflation factor, restraints, if any, on future operations such as might
arise, if an acute shortage of funds is apparent.
2. Forecasts are made so that the Authority may review its performance
against plan and be aware of any emerging change in pattern and
requirement of resources as the year progress towards its conclusion.
From the forecasts they will be able to make the decision which is
necessary to ensure the achievement of the best possible results. The
Authority requires a well informed assessment of the trends moving by
period six so that achievable targets can be set for the budget for the
following financial year.
3. Without forecasts, the principal budget holders will be unable to adjust

the available resources of labour, materials and cash within the
changing pattern of' the' results against budget with any degree of
accuracy. The effect therefore is that the ultimate achievement of
budget objectives will be in jeopardy.


BUDGET MANUAL
19.2.2 How a forecast is made
1. The following basic rules will be observed when making the forecast :
i) Refer to original operating plan on which the budget was based

and carry out the following:
a) compare in physical terms the achievement to date with the

phased original plan.
b) evaluate the variance between plan and achievement to date

using the original budget prices. This value indicates the gain
to date or ·the leeway which has to be made up if the
original plan is to be achieved.
c) the difference between the actual budget variance and this

evaluated variance represents the inflationary and/ or prices
variance.
ii) Revise the operating plan to the end of the year, in physical
terms.
iii) Examine the guidelines given by the General Manager Finance

for forecast preparation and build these into an evaluated
revision of the plan for the time remaining to the end of the
year.
iv) Add the results of (c) to the actual expenditure or income to

date as shown in the management accounts for the period up
to the review. The resultant figure is the first draft of the
Forecast.
2. Although these formal rules should be followed in making the forecast

the budget holder will also use his experience and knowledge of the
local situation in arriving at his revised plan. It is not adequate merely
to follow arithmetic progressions and extrapolation of statistics.


BUDGET MANUAL
Before a forecast is submitted, it should be examined in the light of

practical experience and local knowledge.
3. Forecasts are prepared by the budget holders. However they should

seek the assistance of their accountants for items (a) and (c) in sub
paragraph (i) above.
19.3 COMMITMENTS RECORDS
While every endeavor will be made to accrue in the monthly accounts all known
items of expenditures which have not been entered through books of account
this in itself will not prevent a budget holder from overspending as information
is presented on a historical basis. The budget holders therefore maintain the
records of the commitments they make and commitment controls will be made
at all ordering levels and disbursement officers. Over spending of a budget can
be prevented by review of the uncommitted balance of the budget before
further commitments are made.


BUDGET MANUAL
ANNEXURES
These are Model Formats and are subject to change according to the
requirements of the Federal Government. Only the formats issued
by the relevant office of the General Manager Finance calling for
the compilation of the budget shall be treated as the final version
of the formats on which the budget for the year/period shall be
compiled.


BUDGET MANUAL
ANNEXURES WATER WING


BUDGET MANUAL
PROJECT TIME TABLES - ANNEXURE-W1-A


BUDGET MANUAL
PROJECT DIGEST - ANNEXURE-W1-B
WATER WING PSDP

1 Name of Project
Location (District wise)
2 Commencement Date
(As per PC-I/II

3 Completion Date (Expected) )
(Figures in million)
4 Financial Review: Local Foreign Total
i) Original approved PC-I/PC-II Cost

Date Forum
Latest Revised approved PC-I/PC-II

ii) Cost
Date Forum
Latest position of un-approved PC-

iii) I/PC-II
( )
iv) Expenditure upto June, 2013
v) Revised Estimates 2013-14
vi) Estimated Expenditure on 30.06.2014
vii) Throw forward (i/ii - iv)
Utilization
Allocation upto
Donor's June 30, Terminal
5 Foreign Aid Commitments: Currency 2013 Date
Financial As per Actuals/

6 Year Wise Phasing: Year PC-I Projected


BUDGET MANUAL
PROJECT DIGEST (CONTD)
7 PUBLIC SECTOR DEVELOPMENT PROGRAMME 2014-15 (PROPOSED)
(Figures in million)
Local Foreign Total
I. Fixed Expenses
a) Admn. Expenses
b) Overhead Charges
c) Interest During Construction
d) Consultants Cost
SubTotal-I Rs:
II. Assets
III
. Works
Total (I+II+III) Rs:
8 Physical Review
Progre-
ssive Proposed
Scope Achieve- Targets Targets
Description of Works as per ment on fixed for for
Items Unit PC-I/II June, 2013 2013-14 2014-15


BUDGET MANUAL
FIXED EXPENSES- ANNEXURE-W1-C

PUBLIC SECTOR DEVELOPMENT PROGRAMME 2014-15 (PROPOSED)
Name of Project/Scheme:
FIXED EXPENSES: (Rupees in million)
Local Foreign
H E A D S Currency Assistance Total
01 02 03 04
I ADMN. EXPENSES
Pay of Officers.
House Rent Allowance
Conveyance Allowance
Other Allowances
Pay of Staff
House Rent Allowance
Conveyance Allowance
Other Allowances
Total Establishment Charges:
Travelling Allowance
Transfer Grant
Honoraria
Overtime
Pensionery Charges
Leave Salary & Pension for Deputationists
Cash Medical Allowance
Other Medical Charges
Centralized Medical Expenses
Rent, Rate & Taxes
Bank Charges
Group Life Insurance Premium
Free Energy to Staff
Law Charges
Education Cess
Training Expenses
R&M of Vehicles (POL)
R&M of Vehicles (Other Expenses)
Maintenance of Residential Buildings
Maintenance of Non-Residential Buildings
Advertising & Publicity
Printing & Stationery
Charges for Letter of Credit
Telephone Charges
Light, Heat & Power Charges
Liveries
Postage & Telegrams
Store Handling Charges


BUDGET MANUAL

FIXED EXPENSES: (Rupees in million)
Local Foreign
01 02 03 04
Sports Funds
Computer Charges
Entertainment Charges
Other Contingencies
Social Welfare Cost
Prorata Shares:
- General Manager
- Other
Total (I):
II OVERHEAD CHARGES
III INTEREST DURING CONSTRUCTION
IV CONSULTANTS' COST
Total Fixed Expenses (I+II+III+IV):


BUDGET MANUAL
ASSETS- ANNEXURE-W1-D
ASSETS (Rupees in million)

Local Foreign
01 02 03 04
Plant and Machinery
Camp Equipment
Laboratory Equipment
Photographic Equipment
Electric Equipment
Office Machine &Equipment
Drawing & Survey Instruments
Furniture & Fixture - Residential
Firniture& Fixture - Non Residential
Miscellaneous T&P
Library Books
Utility Vehicles
Spare parts
Steel
Cement
Duties & Taxes
Inland Transportation
Miscellaneous Material & Store
Any other item

Total (Assets) Rs:


BUDGET MANUAL
WORKS- ANNEXURE-W1-E
WORKS (Rupees in million)

Local Foreign
01 02 03 04
Survey & Mapping
Research and Investigation
Land Acquisition/Compensation
Camps, Colonies and Roads
Canals Construction
Minors/Distributories
Disposal/Flood Carrier Channels
Dams Construction
Electrical/Mechanical Works
Tubewells Electrification
Tubewell Drilling
Water Courses
R&M of Utility Vehicles
R&M of Plant and Machinery
Previous Liabilities (if any)
Work-charged Establishment
O&M Cost
Miacellaneous Works
Total (Works) Rs:


BUDGET MANUAL
PUBLIC SECTOR DEVELOPMENT PROGRAMME 20_ _-20_ _ WATER WING WAPDA - ANNEXURE-W1-F
SECTOR / SUB-SECTOR:-
EXECUTING AGENCY:- WAPDA
MINISTRY / DIVISION:- WATER & POWER
(Rs. Million)
RELATION APPROVED BY ESTIMATED COST ACTUAL ESTIMATED EXPENDITURE DURING 2013-14 UPDATED THROW
SR 1-NAME OF PROJECT SHIP DDWP/CDWP/ EXPENDITURE ACTUAL EXPENDITURE ESTIMATED TOTAL EXPENDITURE CUMULATIVE OVERALL FORWARD
NO 2-LOCATION WITH TARGETS/ ECNEC WITH TOTAL FOREIGN UPTO JUNE 2013 DURING IST HALF OF EXPENDITURE DURING FINANCIAL EXPENDITURE PHYSICAL AS ON IST
3-NAME OF DONOR COUNTRY GOALS OF 11TH DATE OF AID (FEC) FINANCIAL YEAR DURING 2ND HALF OF YEAR 2013-14 (JULY UPTO JUNE 2014 PROGRESS OF JULY
/ AGENCY FIVE YEAR PLAN APPROVAL & TOTAL F/AID 2013-14 (JULY TO FINANCIAL YEAR 2013- 2013 TO JUNE 2014) TOTAL F/AID THE PROJECT 2014
DATE OF DECEMBER 2013) -14(JAN.TO JUNE 2014) TOTAL F/AID (7+13) (8+14) (%AGE) (5-15)
COMPLETION TOTAL F/AID TOTAL F/AID (9+11) (10+12)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
DEMAND FOR PSDP 2014-15 COMPONENTS OF TOTAL DEMAND WHETHER PROJECTION FOR PSDP 2015-16 PROJECTION FOR PSDP 2016-17
TOTAL RUPEE FOREIGN EXCHANGE BALANCE BRIEF PROJECT PROPOSED WORK JUSTIFICATION PROJECT TOTAL RUPEE FOREIGN EXCHANGE TOTAL RUPEE FOREIGN EXCHANGE
REQUIREMENT IDC DUTIES COM- WILL BE REQUIREMENT REQUIREMENT
TO BE MET TO BE MET ETC -PONENT COMPLETED TO BE MET TO BE MET TO BE MET TO BE MET
FROM FROM PROFILE &CORE OBJECTIVES DURING 2014-15 OF DEMAND DURING FROM FROM FROM FROM
FOREIGN OWN 19-23-24 2014-15 FOREIGN OWN FOREIGN OWN
AID RESOURCES OF THE PROJECT $ YES OR NO AID RESOURCES AID RESOURCES
19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37


BUDGET MANUAL
QUARTERLY CASH PLAN- ANNEXURE-W1-G

(Rs in million)
QUARTERLY FINANCIAL REQUIREMENTS BASED ON WORK PLAN
4th
CUMULATIVE 2nd Quarter
COST AS PER EXP. UPTO JUNE, 1st Quarter Quarter 3rd Quarter APR -
ITEMS OF EXPENDITURE PC-I/ PC-II 2014 (PROV) JULY - SEP OCT - DEC JAN - MAR JUNE Total
1 2 3 4 5 6 7 8
Consultancy
Land Acquisition
*Civil Works
Electrical & Mechanical Works

**Procurement
Admn. Expenses
- Salaries/Wages/TA/DA/Training
- POL, Repairs and Maintenance
- Stationery, Telephone, Medical
- Others
Overhead Charges
Interest During Construction
Total:
*Major item wise detail to be provided
**Major item details to be provided


BUDGET MANUAL
QUARTERLY WORK PLAN- ANNEXURE-W1-H

(Rs. Million)
SCOPE QUARTERLY PHYSICAL TARGETS
OF
WORK CUMULATIVE PHYSICAL 4th
AS PER ACHIEVEMENTS UPTO 1st 2nd 3rd Quarter
PC-I/ JUNE 2014 Quarter Quarter Quarter APRIL-
ACTIVITY/ITEM OF WORK UNIT PC-II (PROVISIONAL) JUL-SEP OCT-DEC JAN - MAR JUNE Total
1 2 3 4 5 6 7 8 9
Consultancy Man
Months
Land Acquisition Acres
House Compensation Nos
* Civil Works
** Procurement
* Major Item wise details to be correlated to Cash Plan
** Major item details to be correlated to Cash Plan


BUDGET MANUAL
CONTRACT WISE/WORK WISE DETAILS- ANNEXURE-W1-I

Financia
l Physical
Rs in WorkUni
million t
(Rs in million)
PERIOD FINANCIAL REVIEW PHYSICAL REVIEW
Payment Expecte Provision for 2014-15
Particulars Approve made d Scope of Progress Targets
of d value upto Payment the upto for Targets
Sr. Contract/ of June, during Local Foreign Contract/ 30.06.201 2013- for
No. Work From To contract 2013 2013-14 Currency Assistance Total Work 3 14 2014-15
01 02 03 04 05 06 07 08 09 10 11 12 13 14


BUDGET MANUAL
FINANCIAL FORECAST- ANNEXURE-W1-J

NAME OF PROJECT/SCHEME: ___________________________________________________________________
FINANCIAL FORECAST (Rs. Million)

Budget Estimates Budget Estimates Budget Estimates
Sr.No. Component Name 2014-15 (Planned) 2015-16 (Forecast) 2016-17 (Forecast)
01 02 03 04 05
I Consultancy
II Land Acquisition
III Civil Works
IV E&M Works
V Procurement (Assets)
VI Admn. Expenses
VII Overhead Charges
VIII Interest During Construction
Total
23PHYSICAL FORECAST
Units of Budget Estimates Budget Estimates Budget Estimates

Sr.No. Key Output Indicators Measurements 2014-15 (Planned) 2015-16 (Forecast) 2016-17 (Forecast)
01 02 03 04 05 06
OVERALL PROJECT COMPLETION IN %AGE

Progress upto Proposed during Planned for
Physical Progress June 2013 2013-14 2014-15
1 2 3 4


BUDGET MANUAL
SUPERVISORY OFFICE BUDGET PROFOMA- ANNEXURE-W2

REVISED ESTIMATES 2012-2013 AND BUDGET ESTIMATES 2013-2014
IN RESPECT OF OFFICE-------------------, WAPDA, LAHORE
(Rupees in million)
Budget Proposed Actual Expenditure Recommendations
Estimates Revised Budget Exp. Revised Budget
Code 2012-13 Estimates Estimates 2009- 2010- 2011- upto Estimates Estimates
No. Heads of Account (Approved) 2012-13 2013-14 10 11 12 04/2013 2012-13 2013-14
1 2 3 4 5 6 7 8 9 10 11
201 Pay and Allowances of Officers
201-0 Pay
201-1 House Rent Allowance
201-2 Conveyance Allowance
201-4 Other Allowances
202 Pay and Allowances of Staff
202-0 Pay
202-1 House Rent Allowance
202-2 Conveyance Allowance
202-4 Other Allowances
203 Travelling Expenses
203-0 Travelling Allowance
203-2 Transfer Grant
204 Honoraria
205 Overtime
207 Pensionery Charges
209 Medical Expenses
209-0 Cash Medical Allowance


BUDGET MANUAL

(Rupees in million)
1 2 3 4 5 6 7 8 9 10 11
209-1 Medical Reimbursement
209-2 Centralized Medical Expenses
210 Rent, Rate & Taxes
212 Bank Charges
213 Leave Salary
217 Telephone Charges
218 Group Life Insurance
219 Free Electricity
220 Law Charges
222 Education Cess
223 Training Expenses
223-0 Other Training Expenses
223-1 Centralized Training Expenses
224 R & M of Vehicles
224-0 POL
224-1 Other Expenses
225 Contingencies
225-0 Maintenance of Residential Buildg.
225-1 Maintenance of Non Resdl. Buildg.
225-2 Printing and Stationery
225-3 Advetising& Publicity
225-4 Light, Heat & Power Charges


BUDGET MANUAL

(Rupees in million)
1 2 3 4 5 6 7 8 9 10 11
225-5 Entertainment Charges
225-6 Liveries
225-7 Postage, Stamps & Telegrams
225-8 Other Contingencies
227 Computer Charges
230 Consultant Fee
231 Machine & Allied Equipment
231-2 Library Books
231-4 Plant & Machinery
231-6 Scientific Drawing Instruments
231-8 Office Machine &Equipment
232 Furniture & Fixture
232-0 Residential
232-1 Non Residential
232-2 Tools
232-3 Miscellaneous T&P
Chief Engineer Desposal Cost
233 Vehicles
241 Works
Total


BUDGET MANUAL
ANNEXURES POWER WING


BUDGET MANUAL
PROJECT TIME TABLES - ANNEXURE-P1-A


BUDGET MANUAL
PROJECT DIGEST - ANNEXURE-P1-B

POWER WING
Name of Project: ___________________________ (Proposed) Year---------
LOCAL F/LOAN TOTAL
Capital Expenditure & Financing Pattern
PC-1 COST (APPROVED) Budget Estimates Source of financing
ESTIMATED PC - 1 COST (REVISED) FOREIGN
A/CS TOTAL LOCAL FOREIGN TOTAL
STATUS APPROVED BY ECNEC CAPITAL EX PENDITURE EX CHANG
HEAD AMOUNT PORTION LOAN (4+5+6)
DATED E
COMMENCEMENT DATE 1 2 3 4 5 6 7
DATE OF COMPLETION (ORIGINAL)
12560 Arms & Ammunition
DATE OF COMPLETION (REVISED)
EXPENDITURE UPTO (FINAL) 12585 Misc Equipment’s (tents & Boat)
BUDGET ALLOCATION (APPROVED) 12610 Office Equipment
BUDGET ALLOCATION (REVISED) 12620 Computer & Ancillary Equipment’s
EXPENDITURE FROM 12710 Furniture & Fixtures
REVISED BUDGET ESTIMATES 12810 Transportation Equipment (vehicles)
PROPOSED BUDGET ESTIMATES
Sub Total
TOTAL EXPENDITURE UPTO (6+10)
PROVISIONAL A/cs Head Capital Work In progress
10510 Land
PHYSICAL 11010 B&CW on Free Hold Land – Offices
PROGRESS PHYSICAL 08xx10 oper Building & C/W ork on free hold land
PHYSICAL PHYSICAL EXPECTED TARGETS 08xx20 Power Generation Plant Assets
PROGRESS PHYSICAL PROGRESS TO BE PROPOSED 08xx21 Transmission & Transformation Equipment’s
ACHIEVED TARGETS ACHIEVED ACHIEVED FOR THE
08xx23 Dam & Reservoir Assets
PHYSICAL POSITION UPTO FOR UPTO UPTO YEAR
2 3 4 5 6 7 08xx24 Tunnels, W eir, head ?tail Race
LOT - 1 (COLONY) 08xx25 General / Plant Assets
LOT - 2 (CIVIL WORKS) 08xx30 Other Building Residential / Non Residential
LOT - 3.1 (CIVIL WORKS POWER 08xx35 Consultancy & Engineering
HOUSE) 08xx40 Interest during Construction
LOT - 3.2 (E7M WORKS)
08xx45 Custom Duties, Taxes & Insurance
LOT - 4 (T/L)
08xx50 Preliminary Expenses
08xx55 Project Management Expenses
902500 Project Supervisory Expenses
Sub Total
Grand Total
Target Description


BUDGET MANUAL
CAPITAL EXPENDITURE AND FINANCING PATTERN - ANNEXURE-P1-C

POWER WING
PSDP FY-------------APPROVED
PSDP FY-------------PROPOSED
(Rs. Million)
2013-14 2014-15
Budget Estimates Financing Pattern Financing Pattern
(Revised) (Proposed)
TOTAL LOCAL FOREIGN FOREIGN TOTAL LOCAL FOREIGN FOREIGN
A/cs Code Capital Expenditure (A/Cs Head) AMOUNT PORTION EXCHANGE LOAN AMOUNT PORTION EXCHANGE LOAN
010510 Land
011010 B&CW on Free Hold Land – Offices
012560 Arms & Ammunition
012585 Misc Equipment’s (tents & Boat)
012610 Office Equipment
012620 Computer & Ancillary Equipment’s
012710 Furniture & Fixtures
012810 Transportation Equipment (vehicles)
Sub Total
A/Cs Capital Work In progress(A/Cs Head)
08xx10 Oper. Building & C/Work on free hold land
08xx20 Power Generation Plant Assets
08xx21 Transmission & Transformation Equipment’s
08xx23 Dam & Reservoir Assets
08xx24 Tunnels, Weir, head ?tail Race
08xx25 General / Plant Assets
08xx30 Other Building Residential / Non Residential
08xx35 Consultancy & Engineering
08xx40 Interest during Construction
08xx45 Custom Duties, Taxes & Insurance
08xx50 Preliminary Expenses
08xx55 Project Management Expenses
902500 Project Supervisory Expenses
Total


BUDGET MANUAL
FIXED EXPENDITURE AND FINANCING PATTERN - ANNEXURE-P1-D

POWER WING
PSDP FY-------------APPROVED
PSDP FY-------------PROPOSED
(Rs. Million)
2013-14 2014-15
Financing Pattern Financing Pattern
A/cs Code Account Head AMOUNT PORTION EXCHANGE LOAN AMOUNT PORTION EXCHANGE LOAN
6105 Pay and Allowances
6115 Daily Wages Labour
6120 Employee Benefits
6125 Employers Share in Fund Contribution
6305 Rep. & Maintenance &C.Works on Freehold Land.
6320 Repairs and Maintenance _ General /Plant Assets
6321 Repairs and Maintenance –office Equipment
6322 Repairs and Maintenance –Furniture and fixture
6500 Depreciation - Fixed Assets
6325 Repairs and Maintenance - Other Physical Property
6525 Depreciation –General Plant Assets
6526 Depreciation –Office Equipment
6527 Depreciation –Furniture and fixture
6528 Depreciation –Transportation equipment
6805 Rent, Rates and Taxes
7005 Power, Light, Gas and Water.
7105 Telephone, Fax & Postage
7305 Office supplies and other Equipment
7310 Stores Handling Expenses
7320 Subscriptions and Periodicals


BUDGET MANUAL
(Rs. Million)
2013-14 2014-15
Financing Pattern Financing Pattern
A/cs Code Account Head AMOUNT PORTION EXCHANGE LOAN AMOUNT PORTION EXCHANGE LOAN
7325 Representation and Entertainment
7710 Advertising and Periodicals
8205 Professional Fees
8405 Outside Services Employed
8805 Vehicle Expenses - Repairs
8810 Vehicle Expenses - Fuel and Oil
8815 Vehicle Expenses - Licenses and Insurance
8900 Sundry Expenses
9010 Authority's Overhead
9025 Supervisory Charges
9610 Foreign Exchange Loss
9620 Bank Charges
Total


BUDGET MANUAL
PUBLIC SECTOR DEVELOPMENT PROGRAMME 20_ _-20_ _ POWER WING WAPDA (37 COLUMN) - ANNEXURE-P1-E
BUDGETARY CORPORATION PROGRAMME POWER WING WAPDA
SECTOR / SUB-SECTOR:-
EXECUTING AGENCY:- WAPDA
MINISTRY / DIVISION:- WATER & POWER
(Rs. Million)
RELATION APPROVED BY ESTIMATED COST ACTUAL ESTIMATED EXPENDITURE DURING 2013-14 UPDATED THROW
SR 1-NAME OF PROJECT SHIP DDWP/CDWP/ EXPENDITURE ACTUAL EXPENDITURE ESTIMATED TOTAL EXPENDITURE CUMULATIVE OVERALL FORWARD
NO 2-LOCATION WITH TARGETS/ ECNEC WITH TOTAL FOREIGN UPTO JUNE 2013 DURING IST HALF OF EXPENDITURE DURING FINANCIAL EXPENDITURE PHYSICAL AS ON IST
3-NAME OF DONOR COUNTRY GOALS OF 11TH DATE OF AID (FEC) FINANCIAL YEAR DURING 2ND HALF OF YEAR 2013-14 (JULY UPTO JUNE 2014 PROGRESS OF JULY
/ AGENCY FIVE YEAR PLAN APPROVAL & TOTAL F/AID 2013-14 (JULY TO FINANCIAL YEAR 2013- 2013 TO JUNE 2014) TOTAL F/AID THE PROJECT 2014
DATE OF DECEMBER 2013) -14(JAN.TO JUNE 2014) TOTAL F/AID (7+13) (8+14) (%AGE) (5-15)
COMPLETION TOTAL F/AID TOTAL F/AID (9+11) (10+12)
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18
DEMAND FOR PSDP 2014-15 COMPONENTS OF TOTAL DEMAND WHETHER PROJECTION FOR PSDP 2015-16 PROJECTION FOR PSDP 2016-17
TOTAL RUPEE FOREIGN EXCHANGE BALANCE BRIEF PROJECT PROPOSED WORK JUSTIFICATION PROJECT TOTAL RUPEE FOREIGN EXCHANGE TOTAL RUPEE FOREIGN EXCHANGE
REQUIREMENT IDC DUTIES COM- WILL BE REQUIREMENT REQUIREMENT
TO BE MET TO BE MET ETC -PONENT COMPLETED TO BE MET TO BE MET TO BE MET TO BE MET
FROM FROM PROFILE &CORE OBJECTIVES DURING 2014-15 OF DEMAND DURING FROM FROM FROM FROM
FOREIGN OWN 19-23-24 2014-15 FOREIGN OWN FOREIGN OWN
AID RESOURCES OF THE PROJECT $ YES OR NO AID RESOURCES AID RESOURCES
19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37


BUDGET MANUAL
CASH PLAN FOR FY - ANNEXURE-P1-F

Ministry
Project
PSDP Allocation for FY
PSDP Serial #
(Rs. Million)
CUMULATIVE QUARTERLY FINANCIAL REQUIREMENTS BASED ON WORK PLAN
EXP. UPTO
OBJECT/FUNCTIONAL APPROVED THE END OF 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Total
ITEMS OF EXPENDITURE
CLASSIFICATION COST LAST
FINANCIAL Total FEC Total FEC Total FEC Total FEC Total FEC
YEAR
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Land Acquisition
Recruitment/Establishment
Consultancy
Civil Works
Procurement
Human Resource Development
POL, Repairs and Maintenance
Stationery, Utilities, etc.
Contingency
Others (to be specified)
Total:
Prepared by Approved by
(Project Director) Ministry
Approved by
P&D Division(Projects Wing)


BUDGET MANUAL
ANNUAL WORK PLAN FOR FY - ANNEXURE-P1-G

Ministry _____________________________
Project _____________________________
(Rs. Million)
CUMULATIVE
PHYSICAL QUARTERLY PHYSICAL TARGETS
ACHIEVEMENTS
ACTIVITY/ITEM OF WORK UNIT SCOPE OF WORK
UPTO THE END OF
LAST FINANICAL
JUL-SEP OCT-DEC JAN-MAR APR-JUN
YEAR
1 2 3 4 5 6 7 8
Land Acquisition
Recruitment/Establishment
Consultancy
Civil Works
Procurement
Human Resource Development
POL, Repairs and Maintenance
Stationery, Utilities, etc.
Contingency
Others (to be specified)
Prepared by
_________________________________________ Approved by
(Project Director)
____________________________________ Ministry
Approved by:
P&D Division(Projects
Wing)


BUDGET MANUAL
FOREIGN LOANS FOR THE FY - ANNEXURE-P1-H

PAKISTAN WAPDA - POWER WING (HYDROELECTRIC)
Name of Project
RS in
Million
Sr Name of Currency Withdrawal in Currency Amount in
No Lender of Loan Foreign Currency Conversion Rate Pak Rs
SANCTIONED STRENGTH - ANNEXURE-P1-I

PAKISTAN WAPDA - POWER WING (HYDROELECTRIC)
Name of Project
Sr. Nomenclature of Number of Posts 2013-2014 Number of Posts 2014-2015

BPS
No the Post Sanctioned Working Vacant Sanctioned Working Vacant
1 20
2 19
3 18
4 17
5 16
6 15
7 14
8 13
9 12
10 11
11 10
12 9
13 8
14 7
15 6
16 5
17 4
18 3
19 2
20 1
Total


BUDGET MANUAL
OPERATIONS AND MAINTENANCE BUDGET (CAPITAL & REVENUE) - ANNEXURE-P2-A

Revised Budget for Current FY & Budget Estimates for next FY
In Respect of _____________________
(Rs. Million)
Actual Approved Budget for Revised
Actual Additional/Re- Actual Projected Budget
Expenses Budget Current FY Budget
Expenses approp.(+) Expenditure Expenses Estimates
Code Description for the for after for
for the during upto 3rd of 4th for Next
2nd last Current Additional/Re- Current
last FY Current FY Quarter Quarter FY
FY FY approp. FY
1 2 3 4 5 6 (5+6)=7 8 9 8+9=10 11
0105 Land
Building and Civil
0110 Works on Freehold
0120 LPower
d Generation
0123 Pl
DamsA& Reservoir
0125 General Plant Assets
0126 Office Equipment
0127 Furniture and Fixtures
0128 Transportation
0130 Other Physical
P t
Total Capital Budget
6005 Fuel Expenses
6105 Pay and Allowances
6115 Daily Wages Labour
6120 Employee Benefits
6125 Employers Share in
F dC ib i


BUDGET MANUAL
(Rs. Million)
FY FY approp. FY
Dams Inspection &
6130 Monitoring Cost (Mng.
Charges)
Rep. & Maintenance
6305 &C.Works on Freehold
Land
6315 R & M - Power
6316 GR & M Dam
i Pl &
RRepairsi and
A
6320 Maintenance General
/Plant Assets
6321 R&M Office
E i
R&M Furniture &
6322
Fixture
Repairs and
6325 Maintenance - Other
Physical Property
Depreciation - Fixed
6500
ADepreciation on Ijara
6600
Assets under Sukuk-I
6805 Rent, Rates and Taxes
7005 Power, Light, Gas and
W
Telephone, Fax &
7105
Postage


BUDGET MANUAL
(Rs. Million)
FY FY approp. FY
Office supplies and
7305
other Equipment
Stores Handling
7310
Expenses
Subscriptions and
7320
Periodicals
Representation and
7325
Entertainment
7335 Injuries and Damages
7410 Insurance Plant
7500 Bad Debts
Advertising and
7710
Periodicals
8205 Professional Fees
Outside Services
8405
Employed
Vehicle Expenses -
8805
Repairs
Vehicle Expenses -
8810
Fuel and Oil
Vehicle Expenses -
8815
Licenses and Insurance


BUDGET MANUAL
(Rs. Million)
FY FY approp. FY
Hiring of Buses/Plants
8820
etc.
8900 Sundry Expenses
9010 Authority's Overhead
9025 Supervisory Charges
Share of NHP/Water
9205
Usage Charges
Water Management.
9305 Charges for Power
Generation IRSA
9405 Nepra Fees
9500 Ijara Rental Sukuk-II
9605 Interest Charges
9620 Bank Charges
9705 Provision for Reserve
Cash, Store & Other
9805
Losses
Total O&M Budget and
Expenditure
Total Capital and O&M
Budget Expenditure


BUDGET MANUAL
ACTIVITY-WISE PROGRESS OF CAPITAL BUDGET FOR THE CURRENT FY - ANNEXURE-P2-B

In respect of _________________________________________________
(Rs. Million)
Actual Cash Disbursement & Projected Cash Disbursement &
Sta Expenses upto 3rd Quarter Expenses of 4th Quarter of Current [Spill over to Next FY]
Accou Activity/ Budget Work/ Completi Endi
Sr. rt of Current FY FY
nt Descripti Allocat Purchase Order on Period ng
# Dat Works Store Works Store Works Store
Code on ed No. in Months Date
e Disburs Consum Total Disburseme Consumpti Total Disburseme Consumpti Total
ed ed nt on nt on
9+10= 11+12= 14+15=
1 2 3 4 5 6 7 8 9 10 11 12 14 15
11 13 16
Total
Total
ACTIVITY-WISE CAPITAL BUDGET FOR (NEXT YEAR) FY - ANNEXURE-P2-C

In respect of _________________________________________________
(Rs. Million)
Account Spilled over from Last FY Expense Budget for Current FY Spill over to Next FY
Activity/Description Start Date Ending Date Remarks
Code
Works Material Total Works Material Total Works Material Total
1 2 3 4 5 6 5+6=7 5 6 5+6=7 5 6 5+6=7 8
Total


BUDGET MANUAL
ACTIVITY-WISE PROGRESS OF REPAIR & MAINTENANCE BUDGET FOR FY - ANNEXURE-P2-D

In respect of _________________________________________________
(Rs. Million)
Actual Expenses upto 3rd
Work/ Projected Expenses of 4th Quarter [Spill over to Next FY] Expense
Sta Quarter of Current FY -
Accou Activity Purcha Completi Endi of Current FY - Account Code 63 Budget-A/C Code 63
Sr. Budget rt Account Code 63
nt /Descrip se on Period ng
# Allocated Dat Works Store Works Store Works Store
Code tion Order in Months Date
e Disburs Consum Total Disburseme Consumpti Total Disburseme Consumpti Total
No.
ed ed nt on nt on
9+10= 12+13= 15+16=
1 2 3 4 5 6 7 8 9 10 12 13 15 16
11 14 17
ACTIVITY-WISE REPAIR & MAINTENANCE BUDGET FOR (NEXT YEAR) FY - ANNEXURE-P2-E

In respect of _________________________________________________
(Rs. Million)
Completion Old/Pending activities New activities Total Expense Budget

Account Purchase/Work Start End
S.No. Activity/Description Period in Works Store
Code Order No. Date Date Works Material Total Works Material Total Total
Months Disbursement Consumption
1 2 3 4 5 6 7 8 9 8+9=10 11 12 11+12=13 17 18 17+18=19
Total


BUDGET MANUAL
REVISED BUDGET FOR CURRENT FY & BUDGET ESTIMATES FOR NEXT FY (VEHICLE WISE REPAIR) - ANNEXURE-P2-F
Vehicle Wise Detail of Repair Expenses (Account Code 8805)
In respect of ___________________________
(Rs. Million)
Revised Budget for Current FY Budget Estimate for Next FY
Sr. Year of Allocated to / Minor Repair Major Repair Revised Minor Repair Major Repair Budget
Reg. No.
No. Purchase used by Expenses upto 3rd Expenses of 4th Budget Expenses upto Expenses of 4th Estimate
Quarter (Rs.) Quarter (Rs.) (Rs.) 3rd Quarter (Rs.) Quarter (Rs.) (Rs.)
1 2 3 4 5 6 (5+6)=7 8 9 (8+9)=10
Total
REVISED BUDGET FOR CURRENT FY & BUDGET ESTIMATES FOR NEXT FY (VEHICLE WISE FUEL)- ANNEXURE-P2-G
Vehicle Wise Detail of Fuel Expenses (Account Code 8810)
In respect of ___________________________
(Rs. Million)
Revised Budget for Current FY Budget Estimate for Next FY
Projected
Sr. Year of Allocated to Actual expenses Revised Average Average Budget
Reg. No. Average Average expenses for
No. Purchase / used by upto 3rd Budget for Fuel Millage Estimate for
Fuel Mileage Per Ltr 4th Quarter KM
Quarter of Current FY Price per liter Next FY
Price (Rs.) or Per Kg of Current
Current FY (Rs.) (Rs.) or per Kg (Rs.)
FY
1 2 3 4 5 6 7 8 (7+8)/6*5=9 10 11 12 (12/11)*10=13
Total


BUDGET MANUAL
STORE BUDGET FOR FY - ANNEXURE-P2-H

In Respect of __________________
Account Code 14 - (Stores)
(Rs. Million)
Store Purchases/Receipts
Foreign **
Opening Closing
Description Actual Duties/ Consumption
Balance Local * Total Total Balance
Material Taxes &
Foreign
Cost Others
9=(2+7-
1 2 3 4 5 6=(4+5) 7=(3+6) 8
8)
Approved Budget for FY _________
Revised Budget for FY __________
Budget Estimate for FY _________
* Detail of local purchases as per Form-A (Annexure-P2-I)
** Detail of Foreign purhcases as per Form-B (Annexure-P2-J)


BUDGET MANUAL
FORM-A PAYMENT OF LOCAL MATERIAL - ANNEXURE-P2-I
In respect of ________________
(Rs. Million)
Approved Revised Budget

SR. Budget for Budget for Estimates
A/C Code Description of Materila /Works
No. FY FY for FY
________ ________ ________
Material to be routed through store
Total Material to be routed through Store

Material NOT to be routed through store
Total local procurement NOT to be routed through store

Grand Total


BUDGET MANUAL
FORM-B PAYMENT OF IMPORT OF MATERIAL / WORKS - ANNEXURE-P2-J
In respect of ____________________
(Rs. Million)
Approved Revised Budget
SR. A/C LC Budget for Budget for Estimates
Description of Materila /Works
No. CODE FY FY for FY
No. Date Expiry Date ________ ________ ________
FORM-C FOREIGN EXCHANGE BUDGET OF LC OPENING FOR NEXT FY - ANNEXURE-P2-K

In respect of _________________________
Sr.
A/C Code Description of Material / Works Budget Estimated for Next FY (Mln.Rs.) LC Opening Month Tenure of LC
No.


BUDGET MANUAL
MANPOWER DATA AS ON ___________ - ANNEXURE-P2-L
In Respect of ______________________
Strength
Sr.# Nomenclature of the Post BPS
Sanctioned Working Vacant
6
1 2 3 4 5
(4-5)
Total
LIST OF OFFICERS/OFFICIALS RETIRING DURING FY- ANNEXURE-P2-M
Name of Date of Running

Name of Date of Date of
Sr.No Formation/ BPS Designation Joining Basic Pay
Office/Offical Birth Retirement
Office WAPDA (Rs)


BUDGET MANUAL
CASH FLOW PROJECTIONS ANNEXURE-P3

[Min.Rs]
July Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Total
Installed Capacity (MW)
Net Electrical Output (GWH)
Applicable Tariff
fixed charge (Rs/KW/M)
Variable Charge(Rs/KWH)
Power Sales Revenue
Fixed Charge
Variable Charge
GST
Total
Cash Inflow
Sales Revenue Recovery
Other Income
Total Receipts
Cash Outflow
Operating Expenses (W1)
Debt Servicing (repayment+interest)
Hydel Levies (NHP+WUC+IRSA)
Capital Expenditure (W2)
store Material Purchases incl GST
Employees Long Term Loans
Total Payments
Surplus for Power DEV Projects
W1
Employee Pay & Allowances
Employees Benefits
Employees Post Retiremment Benefits
Repair & Maintenance Works
Admin Expenses
Total
W2
Purchases of Phyusical Assets
Capital Works in Progress
Total
Note: details of each reciept and payment item will be provided in sub-control level codes (6 digits of chart of accounts)


BUDGET MANUAL
CASH FLOW PROJECTIONS ANNEXURE-P3 (Cont’d)

Revenue & Expense Projections
[Min.Rs]
July Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Total
Commercial data
Installed Capacity (MW)
Net Electrical Output (GWH)
Applicable Tariff
Fixed Charge (Rs/KW/M)
Variable Charge(Rs/KWH)
Power sales revenue
Fixed Charge (Min. Rs)
Variable Charge (Min. Rs)
Total
Other Income
Total revenue
Expenses
Operating Expenses (W1)
Interest Expenses
Depreciation & Ijarah Rentals
Hydel levies (NHP+WUC+IRSA)
Total Expenses
Net revenue surplus
W1
Employee Pay & Allowances
Employees Benefits
Employees Post Retiremment Benefits
Repair & Maintenance (W2)
Admin Expenses
Total
W2
Repair and Maintenance Works
Consumption of Material for R&M
Total
Note: details of each reciept & payment item will be provided in sub-control level codes (6 digits of chart of accounts)


BUDGET MANUAL
HYDEL O&M BUDGET TIME TABLE ANNEXURE-P4


BUDGET MANUAL
ANNEXURES GENERAL


BUDGET MANUAL
Project AID - ANNEXURE-G1

Disbursement Estimates For Current FY Revised Estimates for Next FY


BUDGET MANUAL
SUMMARY OF FOREIGN EXCHANGE REQUIREMENT - ANNEXURE-G2

FOR 2011 - 2012 (REVISED ESTIMATES) AND 2012 - 2013 (BUDGET)
DISBURSEMENT BASIS
(Rs. Million)
2010 - 2011
(Actuals)
2011 - 2012 (Budget 2011 - 20122 ( revised 2012 - 2013 (Budget
(physical imports
Estimates) Estimates Estimates)
and actual
payment made)
Cash Aid Total Cash Aid Total Cash Aid Total Cash Aid Total
1 2 3 4 5 6 7 8 9 10 11 12 13
Development
Invisible
Imports
Total
Current Expenditure (Non-

Development)
Invisible
Imports
Total
Grand Total


BUDGET MANUAL
FOREIGN EXCHANGE REQUIRED FOR DEVELOPMENT SCHEMES DURING FY - ANNEXURE-G3

MINISTRY/DIVISION
DEPARTMENT/AUTONOMOUS BODIES
(DISBURSEMENT BASIS)
(Rs. Million)
Foreign Total
Status of the Estimated cost of the Scheme Exchange Foreign (Budget Estimates 2012-2013)
Scheme/Project provision from Exchange from "own resources"
S. Name of (approved or Total own resources Exp. From
No. Scheme/Project un-approved Cost Foreign own
and date of Exchange 2011 - 2011 - resources
Foreign Commodity
approval) Component Total 2012 2012 upto 30- Cash Total
Aid Aid
own Budget Revised 06-2011
Resources
1 2 3 4 5 6 7 8 9 10 11 12 13
DETAILS OF FOREIGN EXCHANGE REQUIREMENT FOR IMPORTS (DEVELOPMENT) DURING FY - ANNEXURE-G4

MINISTRY/DIVISION
(Rs. in million)
Name of Status of the Imports during Imports during 2011 – Imports during 2012
S.No
Project/Schem Project/Schem Total Cost 2011 - 2012 2012 - 2013 (Budget
.
e e (Budget Estimates) ( revised Estimates Estimates)
Tota Tota Tota Ai Tota
Cash Aid l Cash Aid l Cash Aid l Cash d l


BUDGET MANUAL
DETAILS OF FOREIGN EXCHANGE REQUIREMENT FOR IMPORTS (CURRENT) DURING FY - ANNEXURE-G5

MINISTRY/DIVISION
(Rs. in million)
Particulars
Imports during 20XX – 20XX Imports during 20XX – 20XX Imports during 20YY – 20YY
S.No. Purpose of items to
(Budget Estimates) ( revised Estimates) (Budget Estimates)
be imported


BUDGET MANUAL
FOREIGN EXCHANGE BUDGET- INVISIBLE (DEVELOPMENT) FOR FY - ANNEXURE-G6
(Rs. in million)
Budget Budget
Actuals Revised
Estimates Estimates
Particulars 2010 - Estimates for
For 2011 - For 2012 -
2011 2011 - 2012
2012 2013
Name of Project:
(a) Expenditure on Experts /
Consultants
(b) Expenditure on Consultants
or preparation of feasibility
studies (please give Details)
(c ) Others
Total
Please a\specify e.g. Legal fees, Demurrage, etc.


BUDGET MANUAL
FOREIGN EXCHANGE BUDGET INVISIBLE (CURRENT EXPENDITURE)FOR FY- ANNEXURE-G7
(Rs. in million)
Budget Revised Budget

Actuals Estimates Estimates Estimates
2010 - For 2011 - for 2011 - For 2012 -
Particulars 2011 2012 2012 2013
Expenditure on delegation to be sent
1 abroad
Expenditure on trainees already sent or proposed to be
2 sent abroad
3 Expenditure on mission abroad
4 Official donations
Subscription to International and Regional
5 Organization
Leave salary payable to Officer
6 abroad
Pension payable to officers
7 abroad
8 Any other item


BUDGET MANUAL
PC-II FORM - ANNEXURE-G8
GOVERNMENT OF PAKISTAN
PLANNING COMMISSION
PROFORMA FOR DEVELOPMENT PROJECTS
(SURVEY AND FEASIBILITY STUDIES)
http://www.pc.gov.pk/


BUDGET MANUAL
PC-1 FORM- ANNEXURE-G9
PLANNING COMMISSION
(INFRASTRUCTURE SECTORS)
 Transport & Communication
 Telecommunication
 Information Technology
 Energy (Fuel & Power)
 Housing, Government Buildings &

Town Planning
 Irrigation, Drainage & Flood Control
http://www.pc.gov.pk/


BUDGET MANUAL
PC-III FORM (a &b) - ANNEXURE-G10
PLANNING COMMISSION
(ANNUAL TARGETS AND PROGRESS REPORTING)
http://www.pc.gov.pk


BUDGET MANUAL
PCR – 01
(Revised-2010)
PC - IV - ANNEXURE-G11
PROJECT COMPLETION REPORT
(PROFORMA FOR DEVELOPMENT PROJECTS)
PLANNING COMMISSION
http://www.pc.gov.pk/?page_id=1138


BUDGET MANUAL
Revised 2005
PC-V FORM - ANNEXURE-G12
PLANNING COMMISSION
(ANNUAL PERFORMANCE REPORT AFTER
COMPLETION OF PROJECT)
http://www.pc.gov.pk/?page_id=1138


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WATER AND POWER DEVELOPMENT

M. YOUSUF ADIL SALEEM & CO.

1.1 GENERAL INFORMATION ...................................................................... 1

2.1 BUDGET PROCESS ............................................................................. 8

3.1 BUDGET ESTIMATE AND REVISED ESTIMATE .............................................. 13

M. Yousuf Adil Saleem & Co., Chartered Accountants Page 3

4.5 DETAILED DESIGN ............................................................................ 18

M. Yousuf Adil Saleem & Co., Chartered Accountants Page 4

6 WATER WING CURRENT EXPENDITURE BUDGET ESTIMATE .................................. 34

7 BUDGETING OF FOREIGN LOAN/AID/SUPPLIERS’ CREDITS/GRANTS ....................... 35

7.1 GUIDELINES FOR PREPARATION OF FOREIGN LOAN/AID/GRANTS BUDGETS ........ 35

8.1 GUIDELINES FOR PREPARATION OF FOREIGN EXCHANGE BUDGET .................... 38

9.1 CAPITAL EXPENDITURE-ASSETS............................................................. 43

M. Yousuf Adil Saleem & Co., Chartered Accountants Page 5

9.2.2 Main Civil Works ........................................................................ 45

M. Yousuf Adil Saleem & Co., Chartered Accountants Page 6

9.3.19 Stationery And Printing ................................................................ 52

10.1 INTRODUCTION ............................................................................... 55

11.1 INTRODUCTION ............................................................................... 60

12.1 BUDGET FORMS & STATEMENTS ............................................................ 63

M. Yousuf Adil Saleem & Co., Chartered Accountants Page 7

12.6.1 Sale of Power ........................................................................... 66

13.1 CAPITAL EXPENSE ............................................................................ 68

14.1 MONTHLY PHASING OF INCOME AND EXPENSE BUDGET ................................ 70

15.1 EXPECTED REVENUE TO BE EARNED ....................................................... 72

17 COMMON SERVICES BUDGETING .............................................................. 75

17.1 Expense Budgeting ........................................................................... 75

19 BUDGETARY CONTROL ......................................................................... 79

19.1 MANAGEMENT ACTION ....................................................................... 79

ANNEXURES WATER WING ............................................................................. 85

PROJECT TIME TABLES - ANNEXURE-W1-A.......................................................... 86

PROJECT DIGEST - ANNEXURE-W1-B ................................................................. 87

M. Yousuf Adil Saleem & Co., Chartered Accountants Page 8

FIXED EXPENSES- ANNEXURE-W1-C ................................................................... 89

ASSETS- ANNEXURE-W1-D .............................................................................. 91

WORKS- ANNEXURE-W1-E .............................................................................. 92

PUBLIC SECTOR DEVELOPMENT PROGRAMME 20_ _-20_ _ WATER WING WAPDA -

QUARTERLY CASH PLAN- ANNEXURE-W1-G ......................................................... 94

QUARTERLY WORK PLAN- ANNEXURE-W1-H......................................................... 95

CONTRACT WISE/WORK WISE DETAILS- ANNEXURE-W1-I ......................................... 96

FINANCIAL FORECAST- ANNEXURE-W1-J ............................................................. 97

SUPERVISORY OFFICE BUDGET PROFOMA- ANNEXURE-W2 ........................................ 98

ANNEXURES POWER WING ........................................................................... 101

PROJECT TIME TABLES - ANNEXURE-P1-A ........................................................ 102

PROJECT DIGEST - ANNEXURE-P1-B ................................................................ 103

CAPITAL EXPENDITURE AND FINANCING PATTERN - ANNEXURE-P1-C ......................... 104

FIXED EXPENDITURE AND FINANCING PATTERN - ANNEXURE-P1-D ............................ 105

CASH PLAN FOR FY - ANNEXURE-P1-F .............................................................. 108

ANNUAL WORK PLAN FOR FY - ANNEXURE-P1-G.................................................. 109

FOREIGN LOANS FOR THE FY - ANNEXURE-P1-H .................................................. 110

SANCTIONED STRENGTH - ANNEXURE-P1-I ........................................................ 110

ACTIVITY-WISE PROGRESS OF CAPITAL BUDGET FOR THE CURRENT FY - ANNEXURE-P2-B 115

ACTIVITY-WISE CAPITAL BUDGET FOR (NEXT YEAR) FY - ANNEXURE-P2-C ................... 115

ACTIVITY-WISE PROGRESS OF REPAIR & MAINTENANCE BUDGET FOR FY - ANNEXURE-P2-D

M. Yousuf Adil Saleem & Co., Chartered Accountants Page 9

STORE BUDGET FOR FY - ANNEXURE-P2-H ........................................................ 118

FORM-A PAYMENT OF LOCAL MATERIAL - ANNEXURE-P2-I ...................................... 119

FORM-B PAYMENT OF IMPORT OF MATERIAL / WORKS - ANNEXURE-P2-J .................... 120

FORM-C FOREIGN EXCHANGE BUDGET OF LC OPENING FOR NEXT FY - ANNEXURE-P2-K .. 120

MANPOWER DATA AS ON ___________ - ANNEXURE-P2-L....................................... 121

LIST OF OFFICERS/OFFICIALS RETIRING DURING FY- ANNEXURE-P2-M ........................ 121

CASH FLOW PROJECTIONS ANNEXURE-P3 ......................................................... 122

HYDEL O&M BUDGET TIME TABLE ANNEXURE-P4 ................................................. 124