Objectives

In 1992, the Strategic Plan for restructuring the Pakistan Power Sector (PPS) was approved by the GOP/CCI. As a part of the restructuring process, WAPDA's functions under Water Wing and Power Wing were to be segregated in the following manner:

• Unified Power wing of WAPDA comprising of Generation, Transmission and Distribution to be restructured into fourteen (14) public limited companies under the corporate law.

• Restructure power sector assets to form autonomous commercial entities through the adoption of prudent business practices, enhanced efficiency levels, cost reduction and profit orientation

• Promote competition to eventually offer affordable electricity to customers.

• Through corporatization / commercialization process, promote commercial viability and enhance business value of the assets block of each corporate entity.

• Enhance privatization initiatives

Accomplishments
Major accomplishments to-date are as follows:

• Operationalized Pakistan Electric Power Company (PEPCO) as a Private limited management company owned by Government of Pakistan (GOP) to steer, manage and oversee the corporatization/commercialization reforms program.

Formed fourteen (14) Corporate Entities as following:

• Four (4) Thermal Power Generation Companies (GENCOs)
• One (1) National Transmission & Power Dispatch Company (NTDC)
• Nine (9) Distribution Companies (DISCOs)

• Constituted Board of Directors of the corporate entities with the induction of Directors from the private sector and PEPCO to utilize their experience for formulation of effective corporate policies.

• Executed Legal agreements such as Business Transfer Agreements (BTA), Operation and Development Agreement (ODA), Electricity Supply Agreements (ESA), Bulk Supply Agreements (BSA) and Fuel Supply Agreements (FSA) between WAPDA and corporate entities for autonomous commercial operation.

• Transfer of WAPDA staff to the respective corporate entities (Manpower Transition Program Phase-I completed). Phase II is scheduled for completion by June, 2000.

• Obtained Federal Tax Exemptions for the corporate entities for Capital Value Tax, Income tax and Wealth Tax.

• Obtained consent of most of the creditors

• Prepared, reviewed, approved and adopted opening Balance Sheets of the corporate entities as of 30-06-1998.

• Privatization schedule for Faisalabad Electric Supply Company (FESCO) finalized & sent to the Privatization Commission of Pakistan

• Investment Plans for Distribution Power System Rehabilitation prepared and finalized by the Distribution companies

• Financial Restructuring of WAPDA approved by GOP

• Filed applications by all Power Distribution Companies (DISCOs) for obtaining License from National Electric Power Regulatory Authority (NEPRA). Public hearing by NEPRA for processing of applications of Lahore Electric Power Supply Company (LESCO) and Gujranwala Electric Power Company (GEPCO) completed

• Submitted proposal to GOP for Price consideration to be paid or settled by GOP with WAPDA so that share of the corporate entities owned by WAPDA can be transferred in the name of GOP