Water DevelopmentIndus Basin Settlement PlanTarbela DamGhazi Barotha Hydropower ProjectChashma Hydel Power StationMangla Dam Raising ProjectDiamer Basha Dam ProjectPlanning and DesignNeelum Jhelum Hydroelectric ProjectWater DivisionsWater CentralWater SouthWater NorthWater Northern AreasHub Dam Project

151823273032374259656568767881

Public Sector Development ProgrammeFinancial ReviewAdministrative SupportBalance Sheets

919598

114

OrganizationAcknowledgementForewardAn OverviewPerformance at a GlanceWapda CharterAuthority Fund

03040607081111

Power Generation (Hydel) 85

CONTENTSAuthority

Water Wing

Power Wing

Finance and Administration

Member FinanceMD (Admn)Secretary WAPDAPSO to Chairman WAPDAGM (CCC)GM (Finance) PowerChief Auditor

DG (CM) WDG (S&GA)DG (Finance) B&CDG (MS)DG (Insurance)Director (Public Relations)

Member & M.D. (Power)GM (Hydel)GM (Finance) PowerGM (Training)

CE/PrincipalWAPDA Engg: Academy Faisalabad

Member & M.D. (Water)GM (Coord & Mon) WaterGM (Planning & Dev)GM (Technical Services)GM (Hydro Planning)CEO/GM (Diamer Basha Dam)GM (Neelum Jhelum)GM (Central) WaterGM (Projects) SouthGM (Projects) North

GM (M&S)GM (Tarbela/GBHP)GM (Finance) WaterGM (Northern Areas)Advisor (CCC)Consultant (Mega Dams)Advisor (CCC/WAPDA)

ORGANIZATION CHART

Authorityas on June 30, 2009

Fazal Ahmad KhanMember (Power)

Syed Raghib Abbas ShahMember (Water)

Shakil DurraniChairman

Ch. Abdul QadeerMember (Finance)

Muhammad Imtiaz TajwarSecretary Wapda

Annual Report of Water and Power Development Authority(WAPDA) for the year 2008-09 has been prepared forsubmission to the Government of Pakistan in terms of Section21 (1) of the WAPDA Act, 1958. In order to give acomprehensive picture of in hand activities of WAPDA, adetailed description of development of Hydro Power Projects,Vision 2025 being undertaken on behalf of the Governmentof Pakistan and a chapter on Water Resources is also includedwhereas a chapter on Indus Basin Settlement Plan, executedby the Authority on behalf of Government of Pakistanincorporated. The Water and Power Development Authority(WAPDA) is vigorously carrying out feasibility studies andengineering designs for various hydropower projects withaccumulative generation capacity of more than 25000 MW.Most of these studies are at an advance stage of completion.After the completion of these projects the installed capacitywould rise to around 42000 MW by the end of the year 2020.Government of Pakistan decided to construct 5 multipurposestorages in the country during next 10-12 years. Diamer BashaDam Project will be undertaken in the first phase. President ofPakistan performed the groundbreaking ceremony of theproject.

The Authority has been pleased to place on record itsappreciation of the commendable services rendered by itsofficers, staff and the consultants to achieve the targeted progressrelating to undertaking projects enabling it to fulfill itsobligations. Besides, Authority also deeply appreciates thecooperation and assistance, provided by various organizationsand other agencies of Provincial Governments and FederalDepartments without which it would not have been possibleto meet with the required progress mentioned in this report.During the year under review, management continued to focuson the following major policy initiatives:

Improvement in Operational EfficiencyWAPDA Hydel Power Stations produced 27,363 million KWhnet energy during the FY 2008-09 which is 33.42% of the totalHydel-Thermal Generation Mix of the Power System. The upkeep of generating units was properly focused upon to ensurehigh availability and reliability of cheap hydropower. However,the hydrological conditions were not as favourable as in theprevious years.

WAPDA has also taken in hand rehabilitation of its old existingHydel Power Stations to ensure more reliable and sustainableoperation of these cheap sources of power generation.Rehabilitation of 22 MW Jabban Hydroelectric Power Stationhas been started which at present is in contract award stage.

Rehabilitation of Mangla and Warsak Hydel Power Stationsis also under active consideration and WAPDA is planning tohire consultancy services to carry out feasibility studies of theproposed schemes. Similarly, rehabilitation of 1.1 MW RenalaHydel Power Station to increase its capacity to 4.0 MW is alsobeing studied. Besides the rehabilitation of Tarbela PowerStation is also under active consideration.

Revival of WAPDA as a Development OrganizationIt is indeed gratifying that WAPDA has undertaken Vision-2025 Programme comprising a comprehensive integratedWater Resources and Hydro Power Development Programme,which will boost up the economy of Pakistan. This has alsorevived WAPDA’s primary developmental role as laid downin WAPDA’s charter of duties.

In the first phase of the programme work was started on threecanals, five dams and four hydropower projects. Constructionworks on these projects are in their advance stages ofcompletion.

Studies on Kohala (1100 MW), Dasu (4320 MW), Bunji(7100 MW), Lawi (70 MW), Spat Gah (567 MW), PalasValley (621 MW), Keyal Khwar (122 MW), Basho (28 MW)and Phandar (80 MW) hydropower projects are in progress.WAPDA will soon start working on Studies of Thakot andPatan (each 2800 MW) hydropower projects.

The construction of Neelum Jhelum (969 MW) hydropowerproject has commenced and excavation of tunnels is in progress,whereas construction activities on Golen Gol HydropowerProject (106 MW) are taking a start.

To meet water demands of large agriculture sector of Pakistan,WAPDA is working on various Water Sector Projects whichinclude Raising of Mangla Dam (additional 2.88 MAF Storageand 120 MW electricity), Gomal Zam Dam (0.892 MAF livestorage and 17.4 MW), Satpara Dam (0.51 MAF live storageand 17.3 MW), Kurram Tangi Dam (0.90 MAF live storgeand 83.4 MW), Mirani Dam (0.152 MAF live storage) hasbeen inaugurated in November 2006 and is in operation,Sabakzai Dam (0.0147 MAF live storage) has also beeninaugurated in September 2007 and is in operation. Irrigationprojects of Rainee Canal (Phase-I), Kachhi Canal (Phase-I)and Greater Thal Canal (Phase-I) are under implementation.WAPDA is working under most difficult conditions at GomalZam Dam situated in South Waziristan but with a mission tocomplete this project against all odds as Public Service toPakistan.

ACKNOWLEDGEMENT

04

On the power side Allai Khwar, Khan Khwar, Duber Khwarand Jinnah Hydropower projects are under implementation.

WAPDA has also taken initiative of drainage projects. RBOD-I covering area of Shikarpur, Dadu and Larkana in SindhProvince will provide outfall facilities to the existing andproposed drainage project to improve environmental and waterconditions in Manchar and Hamal Lakes and water for therehabilitation of existing drainage system, increasing agricultureproduction in an area of 542,500 acres. The works includeRBOD Indus Link, RBOD Extension up to Miro Khan ZeroPoint, Rehabilitation of Rato Dero, Miro Khan and Shahdadkotand Remodelling of MNVD while RBOD-III covering thearea of Nasirabad, Jaffarabad Districts of Balochistan andJacobabad, Larkana Districts of Sindh has to provide the direlyneeded effluent disposal facilities for existing and proposeddrainage projects. The work would increase crop productionof agricultural land wasted due to ponds of water, increase incropping intensity and environment condition will improveover gross commanded area of 7,02,548 acres.

To meet with the future requirements, WAPDA is working onstudies of various projects; namely Akhori Dam (600 MW &6.0 MAF live storage)-Munda Dam (740 MW & 0.67 MAFlive storage)-Sukleji Dam (160 KW & 34000 AF live storage)-Basol Dam, Salari Dam, Tank Zam Dam, Kot Fateh andChashma Right Bank Canal (Lift Cum Gravity).

In addition to this, WAPDA has planned to construct 32small/medium dams in the country to help the provinces inintroducing the Most Modern High efficiency irrigationtechniques. In the first phase, 12 small/medium dams will beconstructed wherein MOU has been signed betweenGovernment of Pakistan and China Exim Bank to provide anassistance of $ 700 million for this sector.

Process of tendering for construction of 12 small/medium sizedams like Hingol Dam, Naulong Dam, Winder Dam, GarukDam, Pelar Dam, Nai Gaj Dam, Darwat Dam, Sita Dam, BaraDam, Darban Zam Dam, Ghabir Dam, and Papin Dam havebeen initiated to store 2.5 MAF of water for irrigationdevelopment of 0.635 MA Land. The feasibility studies onDiamer Basha Dam have been completed and process of pre-qualification of conractors for construction of the Dam hasbeen initiated. The construction would start in the year 2010.

Besides WAPDA has signed four projects for seeking CarbonCredits, namely Dubair khwar, Allai Khwar, Golen Gol andJinnah Hydropower Projects which are already underimplementation. These projects will be ranked first in the

country to make efforts for reduction in Global warming,besides setting an example for others.

In addition to this, special studies/research has been initiatedto check on Glacial Melting due to Global warming and futurestrategy to store/conserve the additional water likely to accruefrom melting of Glacier.

Thar Coal Reserves are the second largest in the world.WAPDA has highlighted the importance of cheap powergeneration through coal and in this regard a study was initiatedto provide water in Thar Coal area for meeting the developmentneeds.

WAPDA is working on the feasibility studies of several projectsas mentioned above in both the fields of hydropower and watersector, so that Government of Pakistan can have a convenientchoice pick up projects for implementation depending uponthe requirement, finance viability and the time in which theproject is required to be online. WAPDA is doing studies onthe potential of storing water in underground shells duringFloods/Hill Torrents. In addition to this, WAPDA has madetremendous achievements in Sports Sector by winning 137Medals (Gold, Bronze and Silver) in National Games.

WAPDA earnest endeavours are reflective of the commitmentto support the national economy and poverty alleviationthrough improved Hydel-Thermal Mix of power generation,provision of electricity at affordable rates and above allperspective planning and timely execution of projects to meetwater and power demands of growing population, agricultureand industry.

(Muhammad Imtiaz Tajwar)Secretary WAPDA

05

Public Relations Division takes pride in presenting the 51stissue of Annual Report of Water & Power DevelopmentAuthority (WAPDA). This Annual Report for the fiscal year2008-09 is in line with the requirement of a statutory postulateof the WAPDA Act 1958.

Since restructured, Water, Finance and residual Power Wingshave been effectively performing their chartered duties.WAPDA has made credible progress on various water andpower sector projects in hand during the fiscal year 2008-09,as reflected in this document. The creditable achievements ofthe Authority have profound reflection on implications foreconomic as well as social fabric of the country.

Authenticity and reliable account have been the key factors indocumenting the achievements of the Authority during theyear under report. Keeping the enormous scope and range ofthe activities in view, a number of tables, charts and illustrationshave been incorporated to present the view at a glance. Forbrevity and clarity, editorial material has been confined wheredeemed necessary.

The Public Relations Division wishes to place on record itsappreciation for the efforts put in by all those without whoseactive participation and cooperation, compilation and releaseof this report would have not been possible. Every effort hasbeen made to produce a comprehensive and a valuabledocument for the benefit of the policy-makers, the researchersand all those associated with the allied disciplines. Valuedcomments of the beneficiaries and the readers, in general, areconsidered to be the best gauge to assess the degree of successin accomplishing this report. The Editorial Board, therefore,eagerly awaits suggestions for improvement.

(Muhammad Abid Rana)Executive Editor

FOREWORD

06

An overview of the performance of WAPDA including itsoperational and developmental activities during the year endingJune 30, 2009 is as under:

Water WingThe projects completed by Water Wing under the Indus BasinSettlement Plan and those with WAPDA for operation andmaintenance purpose kept functioning satisfactorily.

Irrigation releases from three reservoirs - Tarbela, Mangla andChashma -registered constant trend. In aggregate, 18.49 millionacre feet of water was released from these reservoirscorresponding to irrigation indents, in the fiscal year 2008-09.

The work initiated in the preceding years for water resourcedevelopment gained momentum. Under “the Water Resourcesand Hydropower Development Programme – Vision 2025”,work on Mangla Dam Raising Project, Gomal Zam Dam,Satpara Dam, Greater Thal Canal, Rainee Canal and KachhiCanal continued, while construction work on two drainageprojects, namely RBOD-1 and RBOD-III progressedsatisfactorily. Mirani Dam and Sabakzai Dam, which achievedsubstantial completion in 2006 and 2007 respectively, are inoperation.

Preparatory works to initiate construction of Dimer-BashaDam, the largest- ever project in the history of Pakistan, alsocontinued.

Power WingOperation and maintenance of the existing hydropower stationswas carried out efficiently during the year 2008-09. WAPDAHydel Power Stations generated as many as 27,363 Gwh duringthe year under report.

The implementation work on five hydropower projects,including three high – head hydropower schemes, namelyKhan Khwar, Duber Khwar and Allai Khwar, JinnahHydropower Project and Neelum-Jehlum Hydroelectric PowerProject remained in progress. In addition, 4500-MW Diamer-Basha Dam and 106-MW Golan Goal Hydropower Projectare ready for construction. WAPDA also carried out feasibilitystudies and detailed engineering designs of various hydropowerprojects with cumulative generation capacity of more than20,000 MW including 1100-MW Kohala, 4320-MW Dasu,7100-MW Bunji etc.

Besides planning and constructing new hydropower projects,rehabilitation of Jabban Hydropower Station has also beenundertaken. WAPDA is also planning to take up rehabilitationof Warsak, Mangla, Renala and Tarbela power houses for theirreliable operation.

OVERVIEWWAPDA in 2008 - 09

TotalTarbelaManglaChashma

07

Water Releases from Wapda Reservoirs( MAF )

4.2

3.89

8.1

16.19

2.59

4.97

9.11

16.67

4

4.17

8.49

16.66

2.31

5.57

7.64

15.52

3.71

5.51

9.27

18.49

2004-05 2005-06 2006-07 2007-08 2008-09

PSDP / ADP Allocations(Rs. in billion)

2004-05 2005-06 2006-07 2007-08 2008-09

15

22.9

29.5

33.6

37.2

PERFORMANCE AT A GLANCE 2008 - 09SECTOR SUBJECT 2008 - 2009

21,936.0015,285.25

37,221.25

POWER6,444

6,444

27,363

WATER Water Releases from Reservoirs(Million Acre Feet)TarbelaManglaChashmaTotal

9.275.513.71

18.4970

18.3

Public Sector DevelopmentProgramme (PSDP/ADP)(Million Rs.)

Completed Scarps/Drainage Project (No)Area covered (Million Acres)

PowerWater

Total

Installed Generating Capacity (MW)Hydel (Including 30 MW from private sector)

TOTAL (WAPDA )

Generation (GWHs) WAPDAHydel

08

THE AUTHORITYWapda Charter

Human ResourcesAuthority Fund

WAPDA CharterThe Pakistan Water and Power Development Authority(WAPDA) was established through an act of parliament inFebruary 1958 for integrated and rapid development andmaintenance of water and power resources of the Country.This includes controlling soil salinity and water logging torehabilitate the affected land in order to strengthen thepredominantly agricultural economy of the country.

As per the charter, amended in March 1959 to transfer theexisting electricity departments from the federating units to it,WAPDA has been assigned the duties of investigation, planningand execution of projects and schemes for:

l Generation, Transmission and distribution of power,l Irrigation, water supply and drainage,l Prevention of water logging and reclamation of saline land,l Flood control andl Inland navigation.

Under the later on developments, vis-à-vis the “Energy Policy1994”, setting up of thermal power generation projects wasshifted to the private sector. Similarly, as a result of restructuringof the Power Wing, the utility part was corporatised intoindependent companies. This shift from convergence todivergence gave birth to 13 entities to operate in different zones.These are National Transmission and Dispatch Company(NTDC), four thermal power generation companies(GENCOs) and eight distribution companies (DISCOs).The present status of these companies is of corporate publiclimited entities under the Umbrella of EPCO, ultimately to goprivatized as planned. The residual Power Wing is thereforenow responsible for major hydro-electric power projects andschemes in operation.

Human ResourcesThe Authority comprises of a Chairman and three members,each heading Water, Power and Finance Wing.

The Members oversee the affairs of their respective wingsthrough General Managers for the streamlined operations intheir respective areas.

During past 51 years of its operations, WAPDA has developedits human resource as a reservoir of knowledge, competenceand expertise through training and experience gained at theaccomplished projects and remaining associated withdiversified development activities. These include professionals,specialists, scientists, economists, administrators, accountants

and skilled workers for planning, building, managing andoperating various projects.

Water WingMember (Water) controls the water wing which is dividedinto North, Central, South and Northern Areas zones. Thesezones cover, in general, North West Frontier Province(NWFP), Punjab, Sindh and Balochistan and Northern Areasrespectively. The activity of water wing involves execution ofsurface and sub-surface water development and drainage-Salinity Control and Reclamation Projects (SCARPs). ChiefEngineers and Project Directors at various levels are responsiblefor effective and timely implementation of Water Wing Projects.

Power WingMember (Power) controls the Power Wing, through GeneralManagers and Chief Engineers in the field of hydro-electricpower, coordination and WAPDA Power PrivatizationOrganization.

WAPDA has an elaborate setup headed by a General Managerfor training of its officers and officials at different levels coveringall the wings of the organization.

FinanceMember (Finance) is responsible for the functioning of thedepartments of Finance, Internal Audit and Budget andAccounts headed by Chief Auditor (Internal Audit) andDirector General Finance (B&C). He also exercisesadministrative control over General Manager (CentralContracts Cell), Director General (Taxes) and Director PublicRelations.

Managing Director (Admn) is vested with the responsibilityfor overall administration and services.

Secretary WAPDA in addition to looking after day-to-dayaffairs of the Secretariat, prepares minutes of the Authority’smeetings, maintains records of its decisions and issues itsdirectives and coordinates among the three Wings besidesmonitoring and implementation of Authority’s decisions.

Authority FundThe Authority Fund consists of the following:l Loans and grants obtained from the federal and provincial

governmentsl Sale proceeds of WAPDA Bondsl Loans obtained by the Authority with general sanctions

of the government

AUTHORITY

11

l Foreign aids and loans obtained from he IBRD, ADB andother international loan giving agencies on such terms and conditions as may be approved by the government

l Sale of powerl All other sums received by the Authority

Since FY 1974-75, the Federal Government is meeting thebudgetary requirements of accelerated programme of SCARPand, from FY 1976-77, for smooth execution of the projects,the Government of Pakistan also assumed the responsibilityof funding Surface Water Projects.

The annual allocation for Water Development Schemescomprising Surface Water Development Projects like ChashmaRight Bank Canal Project and Pat Feeder Canal Project,Drainage and Reclamation projects as well as National DrainageProgramme are earmarked in Public Sector DevelopmentProgramme (PSDP) as interest bearing loans and advancesfrom the Federal Government. The funds are made availableto WAPDA as grant for financing General InvestigationSchemes to provide research based future planning for exploringthe best use of water and fight against twin menace of waterlogging and salinity.

The Ministry of Water and Power provides funds from itscurrent expenditure budget, for continuous and recurring natureresearch schemes such as Mona Reclamation and ExperimentalProject, Lower Indus Management (LIM), Hydrology &Research (H & R) and Perspective Planning Organisation(PPO), while operation and maintenance of Khanpur andHub Dam projects is carried out through interest free loans ofFinance Division.

Funds for other schemes belonging to provinces are providedby the respective governments to WAPDA which acts as theexecuting agency on their behalf. Under an arrangement,

approved by the Federal Government, Water DevelopmentProjects completed by WAPDA, after initial run for one year,are transferred to respective provincial governments for theiroperation and maintenance. Schemes under National DrainageProgram (NDP) are being executed by respective ProvincialIrrigation and Drainage Authority (PIDA) except interprovincial schemes or schemes under participating agreementwith PIDA by WAPDA. These schemes will also be maintainedby the respective provinces through financing out of their ownkitty. The federal government provides Cash DevelopmentLoans (CDL) for drainage projects while grant funds throughforeign loans and cash development loans in rupees. However,with effect from July 1, 1988, WAPDA’s DevelopmentProgramme is earmarked for dams (storages) canals andengineering studies through Public Sector DevelopmentProgram (PSDP). The debt servicing liability in respect ofpower schemes is that of WAPDA which is also responsiblefor discharging its debt liability in respect of expenditureincurred on electrification of SCARP tubewells installed by it.In FY 1987-88, the federal government permitted WAPDA tofloat WAPDA Bonds for Public subscription. Profit on all issuesis being paid to the bond holders regularly.

Further, for various hydro electric power projects in NWFP;i.e. Khan Khwar (72 MW), Allai Khwar (121 MW) and DuberKhwar (130 MW); WAPDA required considerable finances.Since WAPDA’s First Sukuk Issue proved to be a great success,it was decided that another sum of Rs.8.00 Billion be raisedthrough Sukuk. Therefore a company named “WAPDASecond Sukuk Company Limited” was established asWAPDA’s wholly owned subsidiary to act as Special PurposeVehicle (SPV). The company was incorporated on 4th June2007. This provided comfort for raising funds for thecompletion/development of Khwar Hydro Electric Projectsof WAPDA.

12