A memorandum of understanding (MoU) regarding the resolution of KP issues signed between the Federal Govt & GoKP
Decades old financial and developmental issues of Khyber Pakhtunkhwa with the Federal Government were amicably resolved and an agreement was signed to that effect on Thursday 25/02/2016.
These long standing issues included, the share of KP in the net hydel power generation and the accumulated arrears, the sale of electricity to WAPDA from Pehure Hydel Power station, Chashma Right Bank Left Irrigation Scheme, provision of share of natural gas for KP and development schemes under the Workers Welfare Board.
Led by the Chief Minister Pervez Khattak, the KP delegation included Provincial Ministers Sikandar Khan Sherpao, Inayatullah Khan, Anisa Zeb Tahirkhieli, Muzafar Syed, Mohammad Atif, Chief Secretary Amjad Ali Khan, Finance Secretary Ali Raza Bhutta, Secretary Power Mohammad Naeem, Senator Shibli Faraza and Chairman EZDMC Ghulam Dastagir. The Federal Government delegation was led by the Finance Minister Mohammad Ishaq Dar and Khawaja Mohammad Asif and included Secretary Finance and the heads of related organizations.
As per the agreement the KP Government and WAPDA settled their arrears against each other and the KP Government will be further paid a sum of Rs.70 billion with Rs.25 billion being paid during the current financial year and the remaining in three yearly installments of Rs.15 billion each. This dispute was pending since the water accord in the early 1990’s.
It was further agreed that a power purchasing agreement regarding the electricity generated from the Pehure Hydel Power Station would be signed at the latest by March 31, 2016. This will also incorporate a mechanism for the recovery of the arrears for this generation. The power house had been commissioned more than a decade ago but in the absence of an agreement, only a token price was being credited to the KP government with the arrears piling up.
It was further agreed that the Federal Government will allocate 100 MMCFD gas to the KP Government for power generation either on its own or through public-private partnership.
With regard to the Chashma Right Bank Left irrigation scheme, the feasibility will be redone and the project will be executed through 65 percent of its funding by the Federal government and the remaining 36 percent by the KP government. Over three thousand acres of barren land will be irrigated and thus brought under cultivation under this scheme.
For the schemes under the Workers Welfare Fund, the concerned Secretary was directed to resolve the issues urgently.
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