Copy of Tariff Petition

Transcription

PAKISTAN WATER AND POWER DEVELOPMENT AUTHORITY
S
Telephone # : 99202522
99202211/ 2713
Fax
:99202005
General Manager Finance (P)
WAPDA, 713 — Wapda House
Lahore
No.GMF/CPCC/4525/ NO5
Dated:2/ /03/ 2013
The Registrar, NEPRA
2nd Floor, OPF Building
G-5/2, Islamabad
Subject:
BULK SUPPY TARIFF PETITION — WAPDA HYDROELECTRIC FOR
FY 2013-14
Ref:
NEPRA/R/TRF-100/WAPDA/1322 dated. 13-02-2013
Please find attached the Bulk supply Tariff (BST) petition in respect of WAPDA
Hydroelectric for FY 2013-14 for sale of power to NTDC/CPPA under section 3(1) of
the NEPRA Tariff Standards and Procedures Rules 1998, along-with the affidavit
and a cheque # 7435524 Dated 29-03-2013 amounting Rs.12,15,760 as NEPRA
fee.
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A,
BEFORE THE NATIONAL ELECTRIC POWER
REGULATORY AUTHORITY
AFFIDAVIT
I, Najib Tariq, General Manager Finance (Power) of WAPDA, 713 WAPDA
House, Lahore, being duly authorized representative/ attorney of WAPDA
Hydroelectric, hereby solemnly affirm and declare that contents of the
accompanying petition/ application # GMF/ CPCC/ 4525/ 1905 dated Mar 29,
2013 including all supporting documents are true and correct to the best of my
knowledge and belief and that nothing has been concealed. I also affirm that all
further documentation and information to be provided by me in connection with
the accompanying petition shall be true to the best of my knowledge and belief.
DEPONENT
(Najib Ta
General Manager Fi
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Verified on oath this 29th day of March 2013 that the contents hereof are true
and correct to the best of my knowledge and belief and nothing has been
concealed.
DEPONENT
(NaJib Tariq)
General Manager Finance (Power)
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RAZZAQ
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LAHORE.
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WAPDA Hydroelectric
PETITION TO NEPRA
FOR DETERMINATION OF
BULK SUPPLY TARIFF OF POWER TO NTDC/CPPA
(FY 2013 2014)
713 - WAPDA House
Lahore
CONTENTS
Sr. No
Description
Page
1
Details of Petitioner
1
2
Statement of Compliance
2
3
The Petition
4
4
Basis of Estimates FY 2013-14
7
List of attachments
Actuarial valuation Report of WAPDA Hydroelectric
Annex-I
Annex-II
Annex-III
4.
Audited Accounts for FY 2011-12 of WAPDA Hydroelectric
Annex-IV
5.
Letter of MoW&P for revision of Authority & Supervisory Overhead rates
Annex-V
6.
Gazette notification for levy of IRSA Charges
Annex-VI
7.
Schedule of debt service Liability for FY 2012-13 & 2013-14
Annex-VII
8.
Generation Plan for FY 2012-13 & 2013-14
Annex-VIII
9.
Schedule of Capital Work in Progress for FY 2011-12, 2012-13 & 2013-14
Annex-IX
1.
2.
3.
Approval of Wapda Authority to File Tariff Revision Petition
Letter of Secretary Wapda to resolve the issue of Sharing of Pension Liability
10. Projected Fixed Assets Schedule for FY 2012-13 & FY 2013-14
Annex-X
11. Manpower Strength of WAPDA Hydroelectric
12. Hydel Power PSDP schedule approved by GoP for FY 2012-13 & 2013-14
Annex-XI
13. List of Hydel Power Stations in Operation covered under generation licence
14. 6 months actual accounts for FY 2012-13 (Jul-Dec).
15. Power Station wise Breakup of Revenue Requirement for FY 2013-14
Annex-XIII
Annex-XI'
Annex-XIV
An nex-XV
.
WAPDA HYDROELECTRIC - TARIFF REVISION PETITION FY 2013-14
,
NAME OF LICENSEE: PAKISATN
WATER AND POWER DEVELOPMENT
AUTHORITY
LICENSE NO.
GL (HYDEL) /05 / 2004
PETITION:
PETITION FOR REVISION OF TARIFF
FOR FY 2013-14 FOR BULK
SUPPLY OF POWER FROM WAPDA
HYDEL POWER STATIONS.
-1-
,-/
WAPDA HYDROELECTRIC — TARIFF REVISION PETITION FY 2013-14
STATEMENT OF COMPLIANCE
ORDER OF NEPRA
Order of National Electric Power Regulatory Authority at Para 18 of Determination
dated November 10, 2011 is reproduced here under:
i) Subject to adjustment on account of determination of Net Hydel Profits by CCI,
WAPDA is allowed to charge the Central Power Purchase Agency (CPPA) within the
National Transmission and Despatch Company (NTDC) the following rate, as two part
tariff, for sale of bulk power measured at the bus bar of its hydro electric power
stations connected directly or indirectly to the transmission system of NTDC.
Fixed Charge = Rs. 549.042 per KW per month of installed capacity, and
Variable Charge = Paisa 7.707 per kWh delivered.
ii) The above tariff is applicable for a period of one year from date of notification by GoP,
after which the following tariff will be applicable for WAPDA Hydroelectric.
Fixed Charge = Rs. 482.340 per KW per month of installed capacity, and
Variable Charge = Paisa 6.771 per kWh delivered.
iii) Any over/under recovery of cost/revenue requirement due to the variation of actual
Net Energy Production (NEP) from the estimated amount of 29,749 GWh and other
factors beyond control of WAPDA Hydroelectric will be adjusted after due
consideration by the Authority, at the time of next tariff determination.
COMPLIANCE OF ORDER
In pursuance to determination of Bulk Supply Tariff of WAPDA Hydroelectric for FY
2011-12 by NEPRA on 10.11.2011 GoP notified the revised tariff vide Gazette
Notification: S.R.O. 1103(1)/2011 dated 20.12.2011. Accordingly, revised tariff rates
were applied in hydel sale invoices effective from 20th December 2011.
POINTS MENTIONED IN THE LAST DETERMINATION
In the last tariff determination WAPDA Hydroelectric was not allowed recovery of post
retirement benefits on the basis of actuarial valuation (Unit credit method) for its
serving regular employees and pensioners as per IAS-19, on the following grounds
mentioned in Paras 8.8 & 8.9 of the determination:
a) Petitioner in its last tariff petition had not indicated its intentions of changing
its policy from actual disbursement basis to actuarial valuation by adopting
IAS-19.
-2-
b) Unsettled issue of payment obligations to Ex-WAPDA Pensioner's and
determination of liability of each Ex-WAPDA companies including WAPDA
Hydroelectric.
c) Full justification along with basis of actuarial valuation study is not submitted
to the NEPRA for approval.
In this regard point-wise reply and compliance of the above reservations are as
under:
a) WAPDA Hydroelectric has been preparing its accounts in accordance with the
provisions of WAPDA Act on this account. While processing the tariff petition
for FY 2009-10, NEPRA directed WAPDA Hydroelectric to prepare its accounts
in accordance with IFRS and got them audited from top ranked Chartered
Accountants Firm and also proposed three (3) Firms for this purpose. In
compliance, E&Y Chartered Accountants audited the accounts of WAPDA
Hydroelectric. Based upon the report of the Auditors WAPDA Hydroelectric
adopted, among other, changes in policy for recording terminal benefits of
employees.
b) WAPDA Hydroelectric, holding the Generation License for Hydel Power
Stations issued by NEPRA, has no concern, what so ever to the issue of sharing
of Pension Liability of Retired Employees of Ex-WAPDA entities i.e. GENCOs,
DISCOs and NTDC, after un-bundling of WAPDA Power Wing. However,
Secretary WAPDA has approached Ministry of Water & Power, GoP vide letter
dated: 28.08.2012 (Annexure-II)
to resolve the matter, which is common
owner of WAPDA and Ex-WAPDA entities.
c) Actuarial valuation report of WAPDA Hydroelectric, the NEPRA regulated
business, has been attached to this petition. (Annexure-III)
Furthermore, WAPDA Power Wing has prepared Accounts from FY2011-12
(Annexure-IV) in conformity with the NEPRA (Uniform Accounting System) Rules2009 and bifurcated them into NEPRA Regulated Business (WAPDA Hydroelectric) and
Other Business (Non-regulated).
Based upon audited Accounts of WAPDA Hydroelectric for Financial Year ended on
30th June, 2012 tariff determination Petition for FY 2012-13 was filed on 21st
December 2012, which was returned by NEPRA through letter dated 13th February
2013 with the instructions to file Petition for FY 2013-14 as FY 2012-13 will be over
during the processing of Petition as per rules. Accordingly, projection of WAPDA
Hydroelectric revenue requirements for FY 2012-13 & FY 2013-14 has been made on
the basis of actual audited numbers of FY 2011-12 and Six (6) months (Jul-Dec) actual
numbers for FY 2012-13, projected numbers for last Six (6) months (Jan-Jun) of FY
2012-13 and full year projection for FY 2013-14.
-3-
THE PETITION
LICENSEE INTRODUCTION
WAPDA was established under the WAPDA Act in 1958 as an autonomous body for the
development and use of the water and power resources of Pakistan on a unified,
multipurpose basis. As a result of structural reforms introduced by Government in
Power Sector, the major Activities of WAPDA Hydroelectric being a largest and bona
fide Hydel Power Generation Licensee include:
❖ Operation and maintenance of Existing Hydel Power Stations, &
❖ Construction/ development of new Hydel Power Projects/ Schemes.
NEPRA has approved installed capacity of 6,879.56 MW for Eighteen (18) hydel
power stations of WAPDA-Hydroelectric (List attached at Annexure-V), out of these
Fifteen (15) hydel power stations having installed capacity of 6,612 MW are currently
in operation. The remaining three (3) power stations with total installed capacity of
268 MW shall start operation by June-2013. In addition rehabilitation of 22 MW
Jabban Hydropower is scheduled to complete during FY 2012-13 as well and
Generation Licence on this account will be got modified from NEPRA in due course of
time.
Section 25 of WAPDA Act provides that, the Authority shall ordinarily sell power in
bulk. Further it is also stated that the rate at which the Authority shall sell power shall
be so fixed as to provide for meeting the operation cost, interest charges and
depreciation of assets, the redemption at due time of loans other than those
covered by the depreciation, the payment of any taxes and a reasonable return on
investment.
BASES OF PETITION
Projected change in Revenue Requirements of WAPDA-Hydroelectric for FY 2013-14
worked out on the audited Financial Statements of WAPDA Hydroelectric for FY 201112, Six (6) months (Jul-Dec) actual numbers for FY 2012-13, projected numbers for last
Six (6) months (Jan-Jun) of FY 2012-13 and full FY 2013-14, have formed the basis for
this petition, which are as under:
1. Increase in Regulatory Assets Base from Rs.174,185 Mln to Rs.279,666 Mln due
to more capital investment in the ongoing projects and transfer of completed
projects into fixed assets.
2. Increase in O&M Cost for FY 2013-14 Rs.14,367 as against Rs.5,677 Mln
determined by NEPRA for FY 2011-12.
3. Increase in Depreciation amount from Rs.4,218 Min (NEPRA Determined for FY
2011-12) to Rs.5,861 Mln for FY 2013-14 due to addition in Operating Fixed
Assets.
4. Decrease in Water Usage Charges from NEPRA determined Rs.840 Min for FY
2011-12 to Rs 742 Mln is due to estimated decrease in generation of Hydel
Power Station Mangla.
-4-
5. Imposition of IRSA charge by Ministry of Water and Power, GoP on Hydel
generation through Gazette notification of 25-08-2011.
6. Other Income from NEPRA regulated business activities has been projected as
Rs.699 Mln for FY 2013-14 against Rs.4,195 Mln determined by NEPRA for FY
2011-12 by including income from non-regulated business activities of WAPDA.
7. Debt/Equity ratio for FY 2013-14 works out as 39:61 against NEPRA
determined 45:55 for FY 2011-12.
8. Weighted Average Cost of Capital (WACC) works out to 15.632% for FY 201314 as compared to 15.065% allowed by NEPRA for FY 2011-12.
9. Regulatory Revenue Gap of Rs.11,597 Mln for FY 2010-11, Rs.12,237 Mln for FY
2011-12 and Rs.15,830 Mln for FY 2012-13 has arisen due to allowing
inadequate revenue requirement based upon estimates and delayed
determination and notification of tariff.
AUTHORIZATION & REPRESENTATION
This petition is being filed for the determination of Bulk Supply Tariff for FY 2013-14
through General Manager Finance (Power) WAPDA who has been duly authorized to
sign and file this petition by the WAPDA Authority vide resolution dated 29th March
2013. In the said resolution following officers have also been authorized by the
WAPDA Authority to submit and sign, individually or jointly, the documents necessary
in support of this petition and to appear before NEPRA and represent WAPDAHydroelectric in and during proceedings of this petition:
1.
2.
3.
4.
General Manager (Hydel Operation)
General Manager (Hydro Planning)
Legal Advisor.
REVENUE REQUIREMENTS FOR FY 2013-14
Annual Revenue Requirment
14,367
NEPRA
Determined
2011-12
5,677
Petition
2013-14
■
••••■
esam
Depreciation
5,861
4,218
Ora Rental
1,615
1,506
Net Hydel Profit
6,000
6,000
Water Usage Charges
742
IRSA Charges _
159
Return on Investment
840-,
43,719
Regulatory Revenue Gap FY 2010-11
11,597
'Regulatory Revenue Gap FY 2011-12
12,237
Total
Revenue Source
Power Sale Revenue
Other Income
Total
-5
26,241
5,571
t
15,830 114125
50,052
111,426
699
45,857
4,195
,‘5.0;652
POWER SALE TARIFF FOR FY 2013-14
TABLE-2
Proposed Tariff Present Tariff
I
1i
t
Revenue from power sales
IBreak-up of power sale revenue
Fixed @ 95%
Variable ©5%
1
Installed Capacity
Net Electrical Output
-
FY 2013-14
(Projected)
111,426
40,285
1
105,855
5,571
38,271
2,014
[Mln.Rs]
! [Mln.Rs]
.. ;
i
i
Effective 20-12-12
[Mln.Rs] ,
I
[MW]
6,902 _
31,752
[GVVh]
Change
Incr/(Decr)
.....
6,612 ,
29,749
71,141
67,584
3,557 :
,
290 .
2,003
4
i
Tariff
,
i
Fixed Charge
--,, Variable Charge
[Rs/kW/M1_
! [Ps/kWh] 1
Average Tariff
[nowytli
1,278.00
17.55
482.34
6.771
795.66
3.51
1.35
2.46
10.78
1
RELIEF SOUGHT
This petition seeks determination to approve the revised tariff for FY 2013-14
effective from 1St July 2013 as mentioned below:
Variable Charge
Fixed Charge
(Ps./kWh)
(Rs./kW/Month)
17.55
1,278.00
6
BASIS OF ESTIMATES FOR FY 2013-14
1.
O&M EXPENSES
The O&M expenses are classified into three broad categories as under:
'le0&M Expenses
Re • air & Maintenance Cost
Admin Expenses
TOTAL
6,701
1,845
1,196
5,747
742
1,111
9,742
7,600
1.1 EMPLOYEE COST
The employees cost is further sub classified into following accounts:
The pay & allowances for FY 2011-12 have been incurred in respect of working
strength of 8,174 as against sanctioned manpower strength of 9,644 employees. On
average 1,470 posts of various capacities remained vacant during FY 2011-12 which
need to be filled up for smooth operation of the power stations. The Pay & allowances
of employees For FY 2012-13 & FY 2013-14 have been budgeted on the following
grounds:
❖ Increase in pay & allowances over actual/audited cost of FY 2011-12 has been
projected for the manpower strength of WAPDA Hydroelectric, after catering
for the adhoc relief announced by GoP in Federal Budget for FY 2012-13 as well
as impact of annual increments and considering the actual data for 6 months
(Jul-Dec) for FY2012-13. Whereas, 15% increase has been projected for FY
2013-14 over FY2012-13.
+ Increase in manpower due to inclusion of new hydel power stations in the
operational system.
The employee's benefits are paid at the approved yard stick. House Rent/House
Acquisition, Conveyance Allowance and ceiling of different benefits have been upward
adjusted by the GoP/ WAPDA matching to the inflation. Overall increase is estimated
7
approximately 40% for FY 2012-13 from the Audited numbers for FY 2011-12 mainly
due to increase in house rental ceiling & conveyance allowance. A further 7% increase
has been anticipated for FY 2013-14 as per revised standard terms.
Charge to operational revenue for Employee Retiring Benefits has been proposed
based upon Projected Unit Credit "PUC" Cost method for the active/serving employees
in line with IAS-19 (Employee Benefits). The estimated expenses on the basis of
actuarial valuation for 7,173 serving regular employees and 7,364 pensioners of
WAPDA Hydroelectric are as follow:
Table-5
Retired Employee Benefits
Pension
Free Medical
TOTAL
f"
•
FY 2011-12 FY 2010-11
Audited
Audited
Mln Rs
Mln Rs
2,978
3,378
296
329
777
834
4,051
4,541
The budgeted amount of Employee Retiring Benefits of Rs.5,086 Mln and Rs.6,046 Mln
for FY 2012-13 and FY 2013-14 respectively, which also includes amortization charge
for the past years.
In the last tariff petition, WAPDA Hydroelectric requested NEPRA to allow revenue for
making contribution for pension fund based upon Projected Unit Method for serving
and retired employees of Hydel Power stations. Instead, NEPRA allowed revenue only
up to the extent WAPDA could make actual contribution to pension fund due to having
limited resources.
Contribution to the pension fund as per PUC cost method is essential for WAPDA
Hydroelectric to ensure regular payment to its retired employees for the post
retirement benefits like pension, free medical and electricity and avoid any unwanted
situation like that of Pakistan Railways which often face difficulty in paying pension.
As per prudent business practices and matching principle, future liability of active
employees' terminal or post retirement benefits must be charged to the business
revenues in the period, when an employee actually provided services to the
organization. This will ensure recovery of prudent return on investment and charge to
power consumer accordingly in the period it belongs. Therefore, to reflect real service
cost of an employee, due contribution as per Projected Unit Method should be made to
the Designated Fund and recognize the cost of employees in the year in which said cost
is accrued.
It may be noted that out of proposed contribution spread of five (5) years, on adoption
of IAS-19 in FY 2009-10 almost Four (4) years have already been elapsed.
Consequently, deferred liability of WAPDA Hydroelectric on account of Employees
Benefits has reached to the extent of Rs.9,743 Mln as on 30th June 2012 but due to
disallowing such revenue requirement in the determined tariff by NEPRA, WAPDA
Hydroelectric could not contribute due amount of funds to the Designated Retiring
Benefits Fund.
8
1.2 REPAIR & MAINTENANCE COST
The repair and maintenance cost has been sub- classified as under:
Table-6
FY 2011-12
Audited
Mln Rs
FY 2010-11
Audited
Mln Rs
1,517
696
Repair & Maintenance Cost
Cost of Materials & Works
Cost of Consultancy &
Overheads
Insurance Cost
TOTAL
293
11
35
35
1,845
742
WAPDA Hydroelectric has managed plant availability factor well above the Power
Purchase Agreement (PPA) requirements through timely periodic (Annual/Bi-annual)
preventive maintenance. Routine Repair and Maintenance "R&M" of all Hydel Power
Stations has been planned during FY 2012-13 and FY 2013-14 in line with the
recommendations of the manufacturers. Cost of Materials and Works has been
estimated on the basis of R&M schemes identified by the respective formations for
execution during FY 2012-13 and FY 2013-14.
Replacement and refurbishment activities at Hydel Power Station Tarbela have been
carried forward from FY 2011-12 and are scheduled to complete during FY 2012-13.
Feasibility study for up-gradation and refurbishment of old generating units and allied
equipment of Mangla Power Station has been completed by the Consultants, namely,
M/S MWH (USA)-NESPAK (JV) according to which generating capacity of Mangla
Power Station will increase from 1000 to 1300 MW due to replacing lower efficiency
plant and equipments with those of better efficiency & capacity. Moreover, the
enhanced water storage capacity due to rising of head-height will improve the plant
factor of generating units. The process of detailed design and preparation of tender
documents is in process and award of contract is expected during FY 2012-13.
Joint Venture of M/S RSWI Canada and DCE Pakistan Consultants have been appointed
to carry out feasibility study for rehabilitation, up-gradation and modernization of
generating units of 243 MW Warsak which also includes proposed underground Power
House of 300 MW. The Consultants are expected to complete their assignment during
FY 2012-13 and up-gradation and rehabilitation activities will then be planned and
executed accordingly.
-9-
1.3 ADMIN COST
Admin Cost comprises of following main components:
Table-7
FY 2011-12
(Audited)
Admin Cost
Power, Li:ht, Gas & Water
Vehicle Runnin: Cost
Dam Ins ection
NEPRA Fees
Management Fee/Authority
& Su erviso Overheads
Other Admin Cost
TOTAL
230
177
301
60
308
223
147
469
53
116
120
1,196
103
1,111
The increase in power, light, gas & water has been projected mainly due to frequent
upward revision of power sale rate of DISCOs. The increase in vehicle running cost is
also because of continuous increase in POL prices. Ministry of Water & Power, GOP
vide letter dated 15th August 2011 (Annexure-VI) has up-ward revised the Authority
& Supervisory Overhead rates resulting in increase of this cost. The other admin costs
comprising of expenses on account of Communication, Office, Travelling, Advertising,
Legal, Sundry, Taxes etc. have been given just price inflationary effect.
2.
NET HYDEL PROFITS
Upon the directions of GoP, WAPDA Hydroelectric is making ad-hoc payment of
Rs.6,000 Mln annually as an interim arrangement to the government of KPK and no
payment is being made to government of Punjab. This effect has been clarified by the
MOF to NEPRA vide letter No. F.5 (15) CF.1/2003-04/464 dated 06.05.2004. Payment
of NHP has been assumed at the same level for FY 2012-13 and FY 2013-14, pending
deciding of the matter by Council of Common Interests "CCI". It is a pass through item
for WAPDA Hydroelectric. A review tariff petition will be filed accordingly if any
change is intimated by the GoP from the existing instructions.
3.
WATER USAGE CHARGES
Water Usage Charges "WUC" is payable to the GoAJ&K on generation at Hydel power
station Mangla under MOU/ Agreement dated 27.06.2003, at the rate of Rs.0.15 per
kWh of Net Electric Output "NEO".
Based upon the estimated NEO at Hydel power station Mangla during FY 2013-14, the
WUC has been projected as Rs.742 Mln. The working and comparison with previous
year has been shown in the table below.
- 10-
Table-8
Water Usage
Charges
NEO HPS Man • la
WUC Rate
WUC Amount
4.
Units
GWh
Rs./kWh
(Mln. Rs)
FY 2011-12 FY 2010-11
Audited
Audited
4,666
5,969
0.15
0.15
700
895
IRSA CHARGES
Ministry of Water & Power vide S.R.O. (1)/2011 dated 25.08.2011 (Annexure-VII) has
levied IRSA Charges at the rate of Rs.0.005 per kWh for managing water for hydro
power generation to be paid by WAPDA.
Based upon estimated NEO of WAPDA Hydroelectric during FY 2013-14, the IRSA
charge has been projected as Rs.159 Mln. The working and the comparison with
previous year has been shown in the table below.
5.
DEPRECIATION CHARGE & IJARA RENTALS
The revaluation of Plant & Machinery of Hydel Power Stations has been carried out
during FY 2011-12 in line with prudent business practices and in order to depict fair
market value of assets which have considerably appreciated since their installation.
Plant & Machinery of existing Hydel Power Stations has accordingly been stated at
replacement/revalued price and revaluation surplus of Rs. 58 billion has been
recorded in the accounts. In the proposed revenue requirement, the increased
depreciation cost due to revaluation is offset through difference in depreciation charge
owing to revaluation of Plant & Machinery, so that the electricity consumers may not
be burdened at all.
Meaning thereby, the proposed depreciation charge is based on historical/ Purchase
cost of Power Generation Plant Assets despite of revaluation adopted. Increase in
Depreciation charges is estimated due to scheduled completion and addition of Gomal
Zam Dam Project, Jinnah, Allai Khwar, Duber khwar Hydro Power and Rehabilitation of
Jabban during FY 2012-13.
Amortization schedule of Ijara Rentals for SUKUK-II pertaining to Tarbela Hydel Power
Station has been revised to make effective changes due to change in KIBOR rates.
Accordingly, Ijara Rentals during FY 2012-13 and FY 2013-14 for SUKUK-II has been
taken as per revised amortization schedule.
,
,
Depreciation Charge & liara Rentals'
. ...
[
1 Depreciation as per Fixed Assets Schedule
Less: Depreciation for Revaluation
Net Depreciation for Calculation of RAB
'Ijara Rentals
Depreciation and Ijara Rentals
Mln Rs)
TABLE-10
2013-14
Projected
9,837
(3,976)
5,861
1,615
7,476
2012-13
Provisional
8,505
(3,976)
4,528
1,615
6,143
2011-12
Audited
8,413
(3,976)
4,436
1,615
6„051...
2010-11
Audited
4,254
4 254
1,502
- 5;75$
6. HYDEL POWER EXPANSIONS
As mandated, WAPDA is actively pursuing its development program. The under
construction Hydroelectric Projects Allai Khwar, Jinnah, Duber Khwar and Gomal Zam
Dam and Jabban Rehabilitation will be completed in FY 2012-13 whereas, Golen Gol is
expected to be completed by 2016. Award of contract for construction of Tarbela 4th
extension and Keyal Khawar Hydro Power Project is in progress. On-going Hydel
power development projects detail of generation is as under:
Table-11
Sr.
No.
1
2
3
Name of Project
Golen Gol HPP
Tarbela 4th Ext.
Keyal Khwar
TOTAL
Capacity Generation
(GWh)
(MW)
466
106
3,840
1,410
426
122
4,732
1,638
Commercial
Operation
Date
10/ 2015
2013-18
2014-18
Due to limited resources, WAPDA has set strategic priority to undertake and complete
new projects having approximately 16,700 MW generating capacity in phases. The
priority projects of WAPDA include Diamir Basha Dam, Kurram Tangi Dam, Munda
Dam, Dasu and Bunji.
In addition to above, number of small/medium and Mega hydroelectric projects, are at
survey & feasibility stage.
7. PROJECT FINANCING
The debt financing portion of the existing Average Regulatory Assets is Rs.125,351 Mln
obtained from various modes i.e. issuing Islamic Instruments (SUKUKs), Cash
Development Loans from GoP and Foreign Loans Relent by GoP. The projected Capital
Investment of Rs.95,984 Mln during FY 2013-14 has been planned to be financed from
different sources as under:
Table-12
Sr. Source of Project Financing
No.
1 Foreign Loans through GoP
2 GoP Cash Development Loans
3 Self-Financing from Hydel Sales Revenues
TOTAL
-12-
Amount
(MlnRs)
23,117
55,895
18,387
95,984
WAPDA HYDROELECTRIC — TARIFF REVISION PETITION
FY 2013-14
8. REGULATORY ASSETS BASE
The Average Net Operating Assets are estimated to enhance significantly due to
completion of Hydel Power Stations of Allai Khwar, Jinnah, Duber Khwar, Gomal Zam
Dam and Rehabilitation of Jabban. Additional capital investment will be made on
Tarbela 4th Extension, Golen Gol, Keyal Khwar to progress towards the completion of
the projects and infrastructure development cost on Diamir Basha Dam and Dasu-I will
also be made to execute the project. Moreover, as mentioned above, Plant & Machinery
of existing Hydel Power Stations has been stated at replacement/revalued price and
revaluation surplus of Rs. 58 billion recorded in the accounts accordingly. However,
Regulatory Assets Base has been calculated after netting off Revaluation Surplus. The
budgeted Regulatory Assets Base for FY 2012-13 and FY 2013-14 is worked out as
under:
TABLE-13
Regulatory Assets Base
RAB Opening
[Min.Rs]
2013-14 ]
Budgeted
2012-13 I
Actual/Prov.
187,971
41,990
229,961
132,711
64,861
Net Fixed Assets in Operation (Net of Revaluation)
Capital Work In Progress
RAB Opening
Additions
126,575 !
60,152
186,72PN.
111,395
53,341
64 736 -
3,143
33,775
222
15,059
25,631
19,141
293
6,810
26,244
(4,528).
(56,645)1
(61,174)1
(4,436)
(10,350)
(14,786)
197,572
Fixed Assets transferred from CWIP
Fixed Assets transferred through Water Wing
New constructions/Assets purchased
Capital Work In Progress (Investment)
Total Addition
2011-12 I 2010-11 I
Audited
I Audited
(Deletions)
Depreciation on Fixed Assets (Net of Revaluation)
CWIP Transfer to Fixed Assets
(5,861);
(5,861)1
Total Deletion
j
9,961
Average RAB for Return
279,666
Net Fixed Asset in Operation
Net Fixed Assets dkeniiiithe Calculation OIRAI§
238,277
(54,282)i
3,976
487,971)
1
-13-
(4,254)
186;727.,
10449
!Reconciliation of Opening Balance of Net Fixed Assets in Operation
Elimination of Revaluation Surplus for Regulatory Purpose 2013-14
2012-13
Budgeted
Actual/Prov.
Less: Revaluation Surplus
_,Depreciaton Attributable b Revaluation
197;672
(4,254)
186,994
(54,282),_
2011.12 I 2010-11 i
Audited
Audited
126,575
111,395
L
- 12606
110951_
9.
WEIGHTED AVERAGE COST OF CAPITAL "WACC"
In FY 2011-12 & FY 2012-13 changes in Debt/ Equity ratio was due to repayment of
Long Term Debts which have been paid as per debt retirement schedule leaving the
equity part to redeem now. The Debt/ Equity ratio for FY 2013-14 works out as 39:61.
WACC has been worked out to 15.632% for FY 2013-14 due to proposed financing of
greater part of capital cost of projects through GoP Cash Development Loans bearing
low interest rates
Comparison of Debt/ Equity ratio and WACC for FY 2013-14 has been shown in the
table below:
TABLE-14
Weighted Average Cost of Capital (WACC)
[MIn.Rs]
Average RAB (Mln Rs)
Financing of RAB
Average Debt
(Min Rs)
Average Equity
(Mln Rs)
Cost of Debt" (% age)
ROE
(% age)
9
?:_ iDebt/Equity Ratio
11EL
10.
2013-14
Budgeted
279,666
110,339
169,327
13:04v
-
' 17:00°A
faq5122
39:61
rlix-
ilifi
2012.13 I
I ActuaVProv.
213,766
71,495
142,271
13.234%
Mid%
2011.12
Audited
192,149
w 6-8,581
123,598
06°
80,218
106,514
10670% ,
1740%
36:64
39:61
- 13.05')%
33:67
2010-11
Audited
RETURN ON REGULATORY ASSETS
On the basis of budgeted Average Regulatory Asset Base and WACC for FY 2013-14,
the budgeted amount of Return on Investment will be as under:
TABLE-15
j
Average RAB for Return
!WACC (%age)
(Return on Investment ROt)
11.
(Mln Rs)
2013.14
2012.13
2011-12
2010-11
Budgeted
Actual/Prov.
Audited
Audited
279,666
213,766
15.632%
15.741%
15.760%
14.507°1:
43;1191
33;648
30,283
25,493
INCOME FROM ASSETS OTHER THAN FINANCIAL ASSETS
Provisional other income during FY 2012-13 from NEPRA regulated business activities
for FY 2012-13 has been estimated as Rs.670 Mln. whereas, income of Rs. 699 Mln has
been projected for FY 2013-14.
-14-
&,/
WAPDA HYDROELECTRIC — TARIFF REVISION PETITION
FY 2013-14
TABLE-16
Income from assets other than financial assets
Amortization of Grant
Income from lease of other property
Sales of Scrap/Stores
Miscellaneous Income
Total
12.
21,44f=.:4
2013-14
2012-13
Projected
316
51
24
308
699
Provisional
315
51
24
280
670
(Mln Rs)
2011-12
2010-11
Audited
640
51
23
105
Audited
Oa'
REGULATORY REVENUE GAP
TABLE-17
2012-13
Actual/Prov
Annual Revenue Requirment
O&M
Depreciation
_Ora Rental__
Net Hydel Profit
Total
Less: Sales Revenue Billed
Total Revenue Gap
2011-12
2010-11
Audited
Audited
9,742
7,600
4,528
4,436
4,254
1,615
1,615
1,502
6,000
6 000
6,000
723
700
895
151
141
33,648
30,283
IRSA Charges
Other Income
Revenue Gap____
i
13,155
Water Usage Charges
Return on Investment_
(Mln Rs)
(670)
(819)
25,493
(678)
59,150
52,098
45,066
43,320 ;
39,861
33,470
15,830
12,237
11,597
Regulatory Revenue Gap has occurred due the following reasons:
❖ Instead of retiring benefits contribution as per Projected Unit Credit, allowing
actual contributions made by WAPDA Hydroelectric to Pension fund which was
low due to not having adequate space in the revenue requirements determined
by NEPRA.
Actual additions to the Regulatory Assets Base were higher than the estimates
made while determining tariff by NEPRA.
❖ Unjustifiable deduction of income derived from financial assets.
❖ The prudently incurred actual 0&M expenses were higher than those of
estimated while determining revenue requirement by NEPRA.
-15-
361
44
18
256
678
Subject: -
Petition for Revision of Tariff for FY 2013-14 for Bulk Supply of Power
from WAPDA Hydel Power Stations.
Placed below is a petition on the subject. The Revenue Requirement for FY 2013-14 has
been worked out as Rs.103,544 Million as compared to Rs.45,856 Million determined by
NEPRA for FY 2011-12. This requires about 139% increase in the tariff which will bring
average tariff to Rs 3.24 per unit from the presently determined average tariff of Rs 1.35
per unit.
The main reasons to file tariff revision petition are as under:
1. Increase in Regulatory Assets Base from Rs.174,185 Min to Rs.279,666 Min due
to more capital investment in the ongoing projects and transfer of completed
projects into fixed assets.
2. Increase in O&M Cost for FY 2013-14 Rs.14,367 as against Rs.5,677 Mln
determined by NEPRA for FY 2011-12.
3. Increase in Depreciation amount from Rs.4,218 Mln (NEPRA Determined for FY
2011-12) to Rs.5,861 Mln for FY 2013-14 due to addition in Operating Fixed
Assets.
4. Decrease in Water Usage Charges from NEPRA determined Rs.840 Mln for FY
2011-12 to Rs 742 MIn is due to estimated decrease in generation of Hydel
Power Station Mangla.
5. Imposition of IRSA charge by Ministry of Water and Power, GoP on Hydel
generation through Gazette notification of 25-08-2011.
6. Other Income from NEPRA regulated business activities has been projected as
Rs.699 MIn for FY 2013-14 against Rs.4,195 MIn determined by NEPRA for FY
2011-12 by including income from non-regulated business activities of WAPDA.
7. Debt/Equity ratio for FY 2013-14 works out as 39:61 against NEPRA determined
45:55 for FY 2011-12.
8. Weighted Average Cost of Capital (WACC) works out to 15.632% for FY 2013-14
as compared to 15.065% allowed by NEPRA for FY 2011-12.
9. Regulatory Revenue Gap of Rs.11,597 MIn for FY 2010-11, Rs.12,237 Mln for
FY 2011-12 and Rs.15,830 Mln for FY 2012-13 has arisen due to allowing
inadequate revenue requirement based upon estimates and delayed
determination and notification of tariff.
The Authority is requested to please allow GM Finance (Power) to file petition for
revision of tariff to NEPRA for FY 2013-14. The Authority is also requested to authorize
following officers of WAPDA to submit and sign individually or jointly, the document
necessary in support of this petition and appear before NEPRA and represent WAPDA.
1.
2.
3.
4.
GM Finance (Power)
GM (Hydel Operation)
GM (Hydroplaning)
Legal Advisor
28.3.13
(Abdul Q urn)
Director CP
r P- 3 cvv,it
DG Fin
7'0.3
Member (fti■
L'f'r
n
Member Cror,76.1
2•
Chair n WAPDA
IG
c
A-VW\C":
• 17,
1/
'olephone:
Fax:
Email:
Pakistan Water and Power Development Authority
042-99202224 &
042-99202211/2752
042-99202030
[email protected]
No.WAPDA(Sectt.)/2012// 2-2-PEC
WAPDA Secretariat
729-WAPDA House, Lahore
1-2_3
Dated: 22 / C e /2012.
The Secretary,
Ministry of Water & Power,
Government of Pakistan,
Islamabad.
Sub: SHARING OF PENSION LIABILITY OF RETIRED EMPLOYEES OF EX-WAPDA
Vi ENTITIES AFTER UN-BUNDLING OF WAPDA POWER WING
It is brought to your kind notice that after restructuring / un bundling of Power Wing
the treasury system for power sale / purchase remained with Wapda until April 2008 when
it was shifted to PEPCO / NTDC. Wapda continued to discharg e pension liabilities as long
as treasury was with Wapda. There after it was not possible for Wapda to pay pension
liability of the employees who retired prior to the corporatization of Ex-Wapda Formations,
as neither was such payment of pension covered under NEPRA Tariff of Wapda Hydro
Electric nor the funds were available for the corportized entities. Thus it was decided by
WAPDA in a meeting of Authority held on 27th May 2010 that the corporate entities will
review with immediate effect the pension cases of employees belonging to distribution
companies who retired before 01.07.1998 and the employees of Generation Companies
and NTDC who retired before 01.03.1999. The .responsibility to pay pension rest with these
entities accordingly as mentioned above.
All DISCOs offices are still paying the retiring benefits as usual but they started
recording receivables a gainst WAPDA in their books of accounts and these amounts could
be around Rs.5 billion to Rs.6 billion upto 30.06.2012. At present, most of the companies
started issuing letters for reimbursement against receivables to our pension directorate.
Consequently, a huge amount of retiring benefit which in fact was to be recorded as O&M
expenses of respective entities and recovered through their power sale tariff remained
understated and remained unclaimed in tarrif.
Cont'd
I,
\Ofr.1.11),Shartng of Ponstoo knot
17 -
P12.
o/c
-2-
Utmost efforts were made to settle this issue with ex-PEPCO level but due attention
was not paid. In order to resolve this issue, thus Wapda suggest that urgent attention may
be given to the issue by calling an immediate meeting on the issue as per following
agenda:a) Companies may be directed to charge the pension payment in respect of
employees retired prior to the corporatization, upto 30.06.2012 to their profit and
loss account / prior year adjustment account and adjust amount shown as
receivable from WAPDA.
OR
b) WAPDA may bear the cost upto 30.06.2012, the adjustment of which may be
made by reducing the net worth of WAPDA in the books of accounts of the
companies reflected in the account of "Deposit for Shares'.
c) After 30.06.2012, DISCOs, GENCOs and NTDC shall factor retiring benefits in
their O&M cost and recover through NEPRA tariff.
d) In case of companies which have already issued the shares to WAPDA, the
adjustment may be made through unsettled account current balances.
e) The corporate entities may be directed to reimburse WAPDA the pension
payments made on their behalf from the WAPDA managed pension payment
offices.
This may be treated as urgent.
if/2erfr
(Muhamma Imtiaz Tajwer)
Secretary WAPDA
••
cc:1. Member(Water)/(Power)/(Finance), WAPDA, Lahore
2. General Manager(Ins & Pen), WAPDA, Lahore
3. PSO/SO to Chairman WAPDA, Lahore
(5/
D 1XTRAS OffictallShanng of Pcnston letter doe
Irsoramm.ammaa.
A-v\iney,:nt
NAUMAN ASSOCIATES
CONSULTING ACTUARIES
Ref No. L-2162/12
September 10, 2012
Mr. Anwar-ul-Hay
Water and Power Development Authority
713-Wapda House
LAHORE
Subject: klitstP&L Charge for the year 2011-2012
Dear Sir,
As per your requirements, we have split the P&L Charge communicated in our repOrts on lAS
19 rciotr_c1
--'1.ricus offices of thc Authority for the following -Fint:'•17-:ec.3'
schemes of Water and Power Development Authority (WAPDA) for the year 2011-2012.
• Employees' Pension Scheme
• Post Retirement Free Medical Scheme
• Post Retirement Free Electricity Scheme
Ai Office;
Allied
Department
Hyde)
Development
'
,rOff0.0
_
CRRK
43,824
8,195
3,229
GM TRAINING
14,422
2,905
1,146
WAPDA STAFF COLLEGE
63,901
12,307
4,855
WAPDA ENGG ACAD
FAISALABAD
-
132,504
25,481
10,052
GMT (Pilf‘-TET:)
127,658
21,895 '
19,897
4,223
1,66i
19,042
2,655
1,044
252,585
54,362
21,444
ARE KHURAM GHARI PS
BANNU
23,253
7,863
3,100
ASSTT: RE (HPS) RENALA
13,486
3,839
1,515
.
RE JINN 4,1-1
IIPSKAL -4,BAGH
CHASI-IrvIA
R 624 I
CE (O&M) POWER HFIP
BESHAM
HYDRO-PLANNING
1\4F Hyde
.
Amount in Rupees Thousands
io
ar or e yg,
't ti
_, ,
s Ais
.
calieitv.„
713, Block - F, Gulberg II
Lahore, Pakistan.
UAN: 042-111-628-626
Phones: 1;7 60201, 3 57;1036, 3575118!
Fax: 35757867
211, Central Hotel Building,
Civil Lines Quarters, Mereweather Road,
Karachi, Pakistan.
Phone: 35/17157, 35644900, 35644901
Fax: 35682494
www.rialiMallaSSOCiateS.com
E-Mail: [email protected] and [email protected]
,
' OWf R) GHAZI
diTHA
33,980
13,397
GM HYDEL
MANAGER FINANCE
HYD3L
75,980
10,679
4,211
47,427
8,851
3,494
RE CHITRAL
21,563
6,836
2,693
RE (HPS) DARGAI ‘
65,725
19,870
7,823
239,383
51,819
20,433
RE (HPS) NANDIPUR'
46,855
12,394
4891
RE HPS RASUL
39,698
12,592
4,960
RE (PS) CHICHOKI
37,666
1Q876
Sr.
20,077
3,773
1,488
28,708
7,726
3,039
3,290
972
527,762
121,607
47,961
276,506
68,346
26,934
578,599
159,299
62,760
RE HPS MANGLA
CM-Pc
mANEMA
RE (HPS) SHADIWAL
RE (HPS) SHADIWAL V
CE PS TARBELA
• CE (NORTH) WARSAK
GM/PD TDP
,,
4,290
384 -
RE (HPS) CHASHMA
CE & PD, CB&CRBC
CHASHMA V
88,694
24,872
9,794
127,554
39,675
V 15,643
G/M/GBHP HAITIAN
231,654
62,240
24,497
MDO MANGLA
305,992
82,748
32,616
3,632,640
882,880
347,980
T 0 T A L:
Please let us know if there az-?, any questions.
Yours faithfully,
M1UHAIVIIVIAD SAGHIR
Vice President
158,935
Ref No.: L-2155/12
September 10, 2012
livvar-ul-Haq
neral Manager Finance (Power)
713 — WAPDA House
LAHORE
Subject: LAS-19 Reporting for Post Retirement Free Electricity Scheme
as at 30.06.2012'
Dear Sir,
The accounting entries for Water and Power Development Authority Post Retirement Free
Electricity Scheme for the year 2011-2012 have been determined according to the
International Accounting Standard 19 (IAS 19) and are presented in the following attached
report.
The results obtained from this report are as follows:
Charge to P&L Account for the year 2011-2012
347,980
Net Balance Sheet Liability/(Asset) as at 30.06.2012
777,790
If there are any questions regarding the calculations or any other aspect of the report, please
feel free to contact us and we would be glad to be of assistance.
Yours faithfully,
MUHAMMAD SAGHIR
Vice President
----- -HEAD OFFICE:
7-B, Block F, Gulberg H
Lahore, Pakistan.
JAN: 042.-111--52•-625
Phones: 35760204, 35753381, 35754036
E-mail: info
Fax: 35757867
KARACHI OFFICE;
211, Central Hotel Building, Civil Lines Quarters
Mereweather Road
Karachi, Pakistan.
Phones: 35644900, 35644901, 35217157
www.naumanassociates.com
naumanassociates.com & [email protected]
—21
NAUMAN ASSOCIATES
Date: September 10, 2012
HEAD OI VICE.
7-B, Block F, Gulberg II
Lahore, Pakistan.
UAN: 042-111-628-626
35760204, 35753381, 3.3754036
Fax: 357..'7867
KARACHI OFFICE:- _
211, Central Hotel Building, Civil Lines Quarters
Mereweather Road
Karachi, Pakistan.
Fax; 3568249•
Phones:15444900, 33644:•01, 352i 71.'37
E-mail: [email protected] & [email protected]
—2_
NAUMAN ASSOCIATES
Table of Contents
Overview
1
0
1.
Charge to P&L Account for the Year 2011-2012
1
2.
Balance Sheet Liability as at 30th June 2012
1
3;
Corroboration of Results
Main Report
OOOOOOOOOO
•
Section 1
N
3
3
•
Purpose of the Report
3
•
Date of Actuarial Valuation
3
•
Data Used for Valuation
3
•
Post Retirement Free Electricity Benefits
3
4
Section 2
•
Actuarial Method Used
4
•
AssumptiOns
4
•
Actuarial Gain/Loss Recognition Policy
5
Section-3 •
Section 4
-
.t‘
6
•
_ Changes in Present Value of Defined Benefit Obligations
7
•
Changes' in Actuarial Gains/(Losses)
7
8
Section 5
Charge to Profit &Loss Account for the Year 2011-2012
8
3., ,0,-Ince Sheet Liability as at 30th June 2012
8
9
Estimated Charge to Profit & Loss Account for the Year 2012-2013
9
NAUMAN ASSOCIATES
Table of Contents
Section 7
•
10
Additional Disclosure Items
o Present Value of Defined Benefit Obligations and Experience
Adjustments
o Principal Actuarial Assumptions
o Actuarial Gains & Losses Recognition Policy
10
10.
10
10
Appendix I
Summary of Benefits Payable
S5
5
Appei,dix 11
Demographic Assumptions
11
, 12
12
-
• - tt-
-
.
NAUMAN ASSOCIATES
Overview
Page 1 of 13
•
Section-1
shoWS' some general information regarding the valuation. done .in this.
Report:
•
Section 2
shows some methodologies and assumptions used in this Report.
•
Section-3
shows the Balance Sheet Liability as fat 30th June 201,1.
•
Section-4
shows the changes in Present Value of Defined Benefit Obligations and
Actuarial Gains/(Losses) during 2011-2012.
•
Section-5
shows the Charge to Profit & Loss (P&L) Account for the year 20112012 ,and Balance Sheet Liability as at 3C June 2012.
•
Section-6
shows the Estimated Charge to Profit & Loss (P&L) Account for the
year 2012-2013.
•
Section-7
shows additional disclosure items which are specifically required under
IAS -19 .
The detailed calculations are shown in the Main Report under Sections 4 through 6.
A summary of the results is given as follows:
1. Charge to P&L Account for the Year 2011-2012
The Charge to the Profit & Loss Account of Lahore Electric Supply Company ("the
Company") Limited related to its Post Retirement Free Electricity Scheme for the year
2011-2012, which is detailed in Section 5, is as follows:
2. Balance Sheet Liability as at 30th June 2012
The closing Balance Sheet Liability (or asset as the case may be) of Post Retirement Free
Electricity benefits for the year 2011-2012 (i.e. as at 30th June 2012), which is detailed in
Section 5, is as follows:
Balance Sheet Liability/(Asset) as at 30.06.2012
C
NAUMAN ASSOCIATES
Overview
Page 2 of 13
3. Corroboration of Results
These results can be verified and corroborated by the following calculations:
re-1.715
1
ti
Balance Sheet Liability/(Asset) as at 30th June 2011,
506,871 -
Amount recognised during the year under IAS-19
347,980
Benefit payments made by the Company during the year
(77,061) .
Isaiance Sheet Liability/(Asset) as at 30 th June 2012
-
777,790
/5/
NAUMAN ASSOCIATES
Main Report
Page 3 of 13
"We
• Purpose of the Report
The purpose of this report is to assist the Company in preparing the financial statements
for the year 2011-2012. The report shall focus on the calculation of accounting entries
related to Water and Power Development Authority Post Retirement Free ElearicitY
Scheme as required under IA.S —19.
This Report and the disclosures provided therein are prepared fOr the use of the senior
management, accounts department and auditors of the Company / Fund (if any), in
respect of reflecting relevant liabilities in the financial statements.
This report is confidential. It should not be used for any other purpose and/or provided in
whole or in part to any other party other than those mentioned above, without our prior
written consent.
• Date of Actuarial Valuation
The actuarial valuation was conducted as at 30th June 2012.
• Data Used for Valuation
The data used for the actuarial valuation of the Water and Power Development Authority
Employees' Post Retirement Free Electricity Scheme was supplied by the Company. A
summary of the data as at the valuation date is as follows:
.
Number of Members
Number of Pensioners Entitled fof Post
Retirement Free Medical
7,518
7,630
• Post Retirement Free Electricity Benefits
'A-sufnma.Fy - of the benefits-payable under the- Post Retirement Free Electricity Scheme is
given in the attached Appendix I.
_ 2-7—
NAUMAN ASSOCIATES
Main Report
Page 4 of 13
• Actuarial Method Used
Projected Unit Credit- (PUC) Actuarial Cost Method was used for calculating, the
accounting entries in this report. This method is mandated under IAS-19.
• Assumptions
The principal and demographic assumptions used in the actuarial valuation are given in
Section 7 and in Appendix II of the Report, respectively.
It is essen4 ..-1 to elucidate here that:
In our opinion, the actuarial assumptions made in this report are unbiased and mutually
compatible.
o Discount Rate
Discount rate is determined by reference to market yields (at the balance sheet„
date) on government bonds, since the long term private sector bond market is not
deep enough in Pakistan. The term of the assumed yield of the government bonds
is consistent with the estimated term of the post-employment benefit obligations.
The discount rate used for the calculations is 13% per annum.
o Rate of Increase in Electricity Cost
In view of the fact that the Electricity price increase rates are in excess of general
inflation, it has been considered appropriate to assume that that the average annual
rate of increase in Electricity cost of retirees will be 12% for each future year of
age.
o Total Costs Incurred in 2011-2012 on the Provision of Electricity Benefits to
Pensioners
The retirees and their dependants are entitled to 50% of the free electricity facility
as compared to the active employees. The total expense incurred by WAPDA in
respect ,of free: electricity facility for retirees during 241-.2012 was provided by
the Company, This cost was Rs.77,060,595/-.
The average electricity cost associated with a retiree and his dependants during the
year ,works out to Rs.10,100/- per retired family. This average cost was Rs.5 026/during 2009-10. This increase in average cost has generated a significant actuarial
loss during the year.
NAUMAN ASSOCIATES
Main Report
Page 5 of 13
a Mortality Rates
It has been assumed that the mortality of the employees in active service will be
according to EFU (61-66) Mortality Table.
The mortality of the pensioners, retiring other than on account of ill-health, has
been assumed to correspond to the Mortality Table, EFU (61-66) with a set-back
of five years from the actual age.
The mortality of the pensioners, retiring on account of ill-health, has been
assumed to correspond to the Mortality Table, EFU (61-66) with a set-forWard of
tl-ime years from the actual age.
o Expected Rates of Withdrawal and Early Retirements
The rates of withdrawal used in the calculations are those based on the experience
of WAPDA and other public-sector organizations in Pakistan.
•
The policy for the recognition of Actuarial Gains/Losses used in this report is based on
the "minimum 10% corridor" 'approach mentioned under paragraph 92 of IAS-19.
However, the Standard also permits the adoption of any systematic method that can result
in faster recognition of accumulated Actuarial Gains & Losses.
2_9
NAUMAN ASSOCIATES
Main Report
Page 6 of 13
• Balance Sheet Liability as at 30th June 2011
•
•
Present Value of Defined Benefit' Obligations
as at 3091‘June 2011
Plus Actuarial Gains/Less Actuarial Losses to be recognised in
later periods
Less unrecognised Transitional Liability to be recognised in later periods
Balance Sheet Liability as per IAS-19 as at 30th June 2011
—0—
ti 1"
,
ee
4 : i
983,856 • „
• 3,213 .
• •
(480,198)
506,871
NAUMAN ASSOCIATES
Main Report
Page 7 of 13
fittiatite
-
• Chanoes in Present Value of Defined Benefit Obligations
Present Value of Defined Benefit Obligations as at 30th June 2011
Current Service Cost for the year
-
983,856 :
60,013
Interest Cost for the year
127,901
.
Benefits Paid during the year
Actuarial (Gain)/Lo•,:.: on PVDBO
(77,061)
817,096
1,911,805
• Changes in Actuarial Gains/(Losses)
1Iiii, . a 44
Unrecognised Actuarial Gains/(Losses) as at 30th June 2011
Actuarial Gains/(Losses) arising during the year
Actuarial (Gains)/Losses charged to P&L during the year
3k
3,213
(817,096)
Nil
(813,883)
(14)
•
NAUMAN ASSOCIATES
Main Report
Page 8 of 13
7"
• Charge to Profit & Loss Account for the Year 2011-2012
'
Current Service Cost -
•
-
,- '4,--t-,• OKI,
60;013 ; .,• .
.,.
interest Cost
127,901
Actuarial (Gains) / Losses Charge
Past Service Cost Charge
.
:
,
Liability/(Asset) Chargf -1 due to Application of TAS-19
_..._
Total Amount Chargeable to P&L Account
, Nil
-
-
,
-
.
- • Nil
160,066 ..
347,980
•
'
1
a
,
1,911,805
later periods
(813,883)
Less Past Service Cost to be recognised in later periods
Nil
Less unrecognised Transitional Liability to be recognised in later
periods
Balance Sheet Liability as per IAS-19 as at 30th June 2012
i px,.•-
(320,132) •
.
777,790
NAUMAN ASSOCIATES
Main Report
Page 9 of 13
,
I I
"4) Estimated Charge to Profit & Loss Account for the Year 2012-2O13
.741;e4sa,
. • -s
Current Service Cost
,Its n. ,
' 67,815
Interest Cost
S
Past Service Cost Charge
-±,
.
248,535
56,609
'
Nil
Liability/(Assct) Charged due to Application of IAS-19
.
-
160,066
533,025
NAUMAN ASSOCIATES
Main Report
Page 10 of 13
•
Present Value of Defined Benefit Obligations and Experience Adjustments
Present value of defined obligations
at year end
Experience adjustment arisiii,.; on plan
liabilities (gain)/losses
1,911,805
983,856
904,983
817,096
N/A'
(3,213)
Discount rate
13% per annum
Expected rate of increase in Electricity cost
12% per annum
Average expected remaining working life time of employees
Actuarial Valuation Method
o Actuarial Gains & Losses
11
years
Projected Unit
Credit Method
.
tPolic
The Actuarial Gains & Losses recognition policy is the "minimum 10% corridor"
approach mentioned under paragraph 92 of lAS 19. -
NAUMAN A. CIIEEMA
M.Sc., FSA
3
'•
NAUMAN ASSOCIATES'
Appendix-I
':. •) CONSULTING ACTUARIES
Page 11 of 12
Under
Post Retirement Free Electricity Scheme
The free electricity benefit to which a retired employee (or his/her spouse) of the CompanY
entitled depends upon the employee's Basic Pay Scale (BPS) at the time of leaving the
Company's service.
The rate of the benefit is 50% of the number of units to which he/she was entitled during
active service. The following table shows the BPS wise number of units allowed per month
for a retiree of the Company.
1 —4
75
5 -10
11 -15
100
150
225
• 300
440-,
• 550
16
17
18
19
20
21
650
22
650
44
31-
--- 35 ---
NAUMAN ASSOCIATES
Appendix-II
Page 12 of 13
The following demographic assumptions have been used in the actuarial valuation.
Expected mortality for active Members
Age
20 .
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
.36
. 37
38
_ 39
40
41
42
43
44
45
46 '
47
48
49
Death Rate
0.0007c
0.00075
0.00075
0.00080
0.00084
0.00089
0.00094
0.00099
0.00104
0.00110
0.00117
0.00124
0.00132
0.00140
0.00149
0.00159
0.00171
0.00184
0.00198
• 0.00214
0.00232
0.00252
0.00275
0.00301
0.00331
0.00365
' 0.00404
0.00449
0.00500
0.00558
As per EFU (61-66) Mortality
Table
Withdrawal Rate
0.12500
0.08570
0.09680
.0.06530
0,04400
0.02970
0.04790
0.03110
0.02040
0.01350
0.00900
0.00600
0.01500
0.00940
0.00600
0.00390
0.00260
0.00170
0.00730
0.00450
0.00280
0.00180
0
0.00120
0.00080
0.00050
-0.00040
0.00020
0.00010
0.00010
'
0.00010
-36-
Ill-health Rate
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000.
0.00000
0.00000
0.00000
0.00050
0.00055
0.00059
0.00064
0.00069
0.00074
0.00078
0.00083
0.00088
0.00092
0.00097
0.00102
0.00106
0.00111
0.00116
0.00121
0.00125
0.00130
0.00210
0.00210
NAUMAN ASSOCIATES
50
51
52
53
54
55
56
57
58
59
60
0.00626
0.00703
0.00792
0.00896
0.01014
0.01147
0.01295
0.01458
0,01635
0.01825
0.00000
Appendix-H
Page 13 of 13
0.00000
0.00000
0.00000
0.00000
0.00000
,0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
3 -
0.00220
0.00220
0.00230
0.00230
0.00240
0.00240' .
0.00250
0.00250
0.00260
0.00260
0.00000
utARY NO.
NAUMAN ASSOCIATES
)
tInan,;(;
WAPDA House
Diary No:_Z
Mr. Anwar-ul-Haq
713 -- WAPDA House
LAHORE
6 35-
DATE
,
c1,
IVI.F. (H/Ct) POWER
WAPDA
Liete.!tf_154/12
September 10, 2012
,
2—
QatedIZ:2,4_
ubject:IAS-19:Efortink for Post Retirement Free Medical Scheme
as at 30.06.2012
Dear Sir,
The accounting entrieG -F:)r Water and 2ower , Developrnont Authority Employees' Post
Retirement Free Medical Scheme for the year 2011-2012 have been determined according to
the International Accounting Standard 19 (LAS 19) and are presented in the attached report.
A summary of the valuation results is as follows:
I Charge to P&L Account for the year 2011-2012
882,880
LBalance Sheet Liability/(Asset) as at'30_06.2012
2,137,278
If there are any questions regarding the calculations or any other aspect of the report, please
feel free to contact us and we would be glad to be of assistance.
Yours faithfully,
1
.1V
MIJHAMMAD S
President.
tiirP.
7B, Block - F,
Gulberg II,
Lahore, Pakistan.
1.11..1.,l'I?4.2-1 I I -628, 626
Phones: 35760204, 35754036, 35753381
Fax: 35 1.57867
KARACHI CITICE:
Civil Lines Quarters,
Mereweather Road,
Karachi, Pakistan.
Phone: 35217157, 35644900, 35644901
Fax: 35682494
NAUMAN ASSOCIATES
HEAD OifFICE:
7B, Block - F,
Gulberg H,
Lahore, Pakistan.
LIA14: as2-311-628-626
Phones: 35760204, 35754036, 35'753381
Fax: 35751867
KARACHI OFFICE;
Civil Lines Quarters,
Mereweather Road,
Karachi, Pakistan:.
Phone: 35217l57; 35644900, 35644901
Fax: 35682494
NAUMAN ASSOCIATES
Table of Contents
Overview
1.
1
2.
1
3.
2
3
Main Report
3
-Section 1
•
3
•
3
•
3
•
Post Retirement Free Medical Scheme
3
4
Section 2
•
4
•
Assumptions
4
•
5
6
Section 3
•
6
7
Section 4
•
Changes in Present Value of Defined Benefit Obligations
7
•
Changes in Actuarial Gainsi(Losses)
7
Section 5
8
•
•
Charge to Profit & Loss Account for the Year 2011-2012
•
Balance Sheet-Liability m at 30th June 20 L7
8
-
Section 6
•
—
0 --
8
9
9
NAUMAN ASSOCIATES
Table of Contents
10
Section 7
•
o Present Value of Defined Benefit Obligations and Experience
Adjustments
6• -Effect of 1% Increase/(Decrease) in Medical Cost Trend Rate
10
10
10
11
11
12
Appendix I
12
13
APPENDIX II
13
— A-
NAUMAN ASSOCIATES
Overview
Page 1 of 14
shows some general information regarding the valuation atone in this
Report.
shows some methodologies, assumptions and actuarial gains/losses
recognition policy used in this Report.
shows the Balance Sheet Liability as at 30th, June 2011.
•
Section-1
.•
Section 2
•
Section-3
•
Section-4
Actuarial Gains/(Losses) during 2011-2012. • - .
•
Section-5 -
show the Cie.' gd to Profit & Loss (P&L) Account for the year
2011-2012, and Balance Sheet Liability as at 30th June 2012.
•
Section-6
•
Section-7
shows the Estimated Charge to Profit &loss (P&L) Account for the
year 2012-2013.
IAS-19.
The detailed calculations are shown in the Main Report under Sections 4 and 6.
1. Charge to P&L Account for the Year 20112012
The Charge to the Profit & Loss Account of Water and Power Development Authority
(WAPDA) Employees' Post Retirement Free Medical Scheme for the year 2011-2012,
which is detailed in Section 5, is as follows:
rehiirge to P&L Account for the year 2011-2012
882,880
2. 'Balance Sheet Liability as at 30th June 2012
The closing Balance Sheet Liability (or asset as the case may be) of Post Retirement
Medical benefits for the year 2011-2012 (i.e. as at 30th June 2012), which is detailed in
[Balance Sheet Liability/(Asset) as at 30.06.2012
42
2,137,278
NAUMAN ASSOCIATES
Overview
Page 2 of 14
. .
.
-
Balance Sheet Liability/(Asset) as at 30th.June 2011
1,390,503
Amount recognised during the year under IAS-19
882,880
Payments made by the Company during the year
(136,105)
Balance Sheet Liability/(Asset)' as at 30th June 2012
-
--
'
2,137,278
(5/
NAUMAN ASSOCIATES
Main Report
Page 3 of 14
W4-4,0;f:
.CTIO
The purpose of this report is to assist the Company in preparirig the financial statements for
the year 201172012: The report shall focus on the calculation of accounting entries related
to Water and Power Development Authority Employees' Post Retirement Free Medical
Scheme as required under IAS — 19.
This Report and the disclosures provided therein are prepared for the use of the senior
management, accounts department and auditors of the Company'/ Fund (if any), in respect of
reflecting relevant liabilities in the financial statements.
written consent.
The data used for the-actuarial valuation of the Water and Power Development Authority
Employees' Post Retirement Free Medical Scheme was supplied by the Company. A
summary of the data as at the valuation date is as follows:
, Number of Members
Number. of Pensioners Entitled for Post
Retirement Free Medical
7,518
7,630
• Post Retirement Free Medical Scheme
A summary of the benefits payable under the Post 2etirement Free Medial Scheme is
given in the attached Appendix I.
NAUMAN ASSOCIATES
Main Report
Page 4 of 14
Projected Unit Credit (PUC) Actuarial Cost Method was used for calculating the
accounting entries in this report. This method is mandated under /AS:19. _
•
Assumptions
The principal and demographic assumptions used in the actuarial valuation are given in
It is essential to elucidate here that:
compatible.
o Discount Rate
Discount rate is determined by reference to market yields (at the balance sheet date)
on government bonds, since the long term private sector bond market is not deep
enough in Pakistan. The term of the assumed yield of the government bonds is
consistent with the estimated term of the post-employment benefit obligations. The
discount rate used for the calculations is 13% per annum.
o Rate of Increase in Medical Costs
The future rate of increase in the costs of providing-the post-retirement medical
facility is dependent on both the general inflation in medical expenses over time, as
well as the natural tendency for medical expenses to rise-as the age of au-individual
increases. Taking into account both these factors and based on the results of various
international studies and local experience, it has been -considered appropriate to
assume that the average annual rate of medical cost increase of retirees will be. 12-%
for each future year of age.
NAUMAN ASSOCIATES
Main Report
Page 5 of 14
o Total Costs Incurred in 2011-2012 on the Provision of Medical Benefits to
Pensioners
Medical facilities are provided to retired Employees and their dependants through
WAPDA Hospitals and Dispensaries. The total cost incurred in respect of, Medical
expenses 'in, 2011-2012 is Rs. 136.105 million. The average annual medical. cost per
retired family works out to Rs.17,838/- as a t 30.06.2012. This cost was Rs. 12,143/as at 30.06.2010.
o Mortality Rates
The mortality of the pensioners, retiring Other than on account of ill-health, has been
assumed to correspond to the Mortality Table, EFU (61-66) with a set-back of five
years from the actual age.
The mortality of the pensioners, retiring on account of ill-health, has been assumed
to correspond to the Mortality Table, EFU (61-66) with a set-forward of three years
from the actual age.
The rates of withdrawal used in the calculations are those based on the experience of
public-sector organizations in Pakistan.
•
The policy for the recognition of Actuarial Gains/Losses used in this report is based on the
"minimum lb% corridor".approach mentioned under paragraph 92-Of LAS-19. However, the
'Standard also permits ,the adoption of any systematic method that can result in faster
recognition of accumulated Actuarial Gains & Losses.
NAUMAN ASSOCIATES
Main Report
Page 6 of 14
Present Value of Defined Benefit Obligations (PVDBO) as
on 30th June 2011
later periods
Liss unrecognised Transitional Liability to be recognised in later
_periods
Less PaSt Service Cost to be recognised in later periods
2,628,876 .
6,963
'(I,245,336)
Nil
1,390,503
NAUMAN ASSOCIATES
Main Report
Page 7 of 14
Changespn, Present Value of Defined Benefit Obligations
•
•
Present Value of Defined Benefit Obligations
as at 30th June 2011
Current Service Cost for the year
.
Intc:est Cost for the year
Actuarial (Gain)/Loss on PVDBO
..„,...,-.,
911 44 ''
2;628876
126,014
,
341, 754
(136,105)
712,887
3,673,426
Actuarial (Gains)/Losses charged, to P&L during the year
Unrecognised Actuarial Gains/ (Losses) as at 30th June 2012.
6,963
(712,887)
Nil
(705,924)
NAUMAN ASSOCIATES
c■
i
Main Report
Page 8 of 14 -
Ehark.eitu_Profit & Loss Account for the Year 2011-2012
P$
•
126,014
Interest Cost
341,754
Nil
Past S:Tvice Cost Charge
Nii
Liability/(Asset) Charged due to Application of IAS-19
415,112
Total Aniount Chargeable to P&L Account
882,880
- qs
"I •
.
later periods
-Less
_ . Past• Service Cost to be recognised in later periods
..
periods
Balance Sheet Liability as at 30t June 2012
Kl,
ate.
3,673,426
(705,924)
Nil
"(830,224)
2,137,278
NAUMAN ASSOCIATES
gtiniat,c1 Ch a r
Main Report
Page 9 of 14
:Prom &Lass Account fortite:._ e4r 2012-2013
)45
4*,.
142,396
Interest Cost
477,545
ACtuarial (Gains) / Lose's Charge
Past Sen:2e Cost Charge
Liability/(Asset) Charged due to Application of IAS719
30,780
. Nil
415,112
1,065,833
NAUMAN ASSOCIATES
Main Report
Page 10 of 14
• Additional bisclosure Items
o Present Value of Defined Benefit Obligations and Experience Adjustments
Present value of defined obliged-Jo-as
at year end
Experience adjustment arising on plan
- liabilities (gain)/losses
2,628,876
2,365,881
N/A
(6,963)
712,887
o Effect of 1% Increase/(Decrease) in Medical Cost Trend Rate
1)
Effect of 1% Increase in Medical Cost Trend Rate
Aggregate of Current Service Cost & Interest Cost
PVDBO,for medical Cost
2)
Effect of 1% Decrease in Medical Cost Trend Rate
i) Aggregate of Current Service Cost & Interest Cost
PVIA30 for medical Cost
(10,415)
(910,275)
•
, •
NAUMAN ASSOCIATES
j
Main Report
Page 11 of 14
Discount rate
,
Expected rate of increase in medical cost
•
13% per annum
•
,
.12%_ per annum
Average expected remaining working life time of employees
11 years
Average annual medical cost per pensioner's family
Rs. 17,838
Actuarial. Valuation Method
,, Projected Unit
Credit Method
o Actuarial Gains & Losses Recoznition Policy
The Actuarial Gains & Losses recognition policy is the "minimum 10% corridor"
approach mentioned under paragraph 92 of IAS 19.
NAUMAN A._ CHEEMA
M.Sc., FSA
NAUMAN ASSOCIATES
Appendix-I
Page 12 of 14
Under
Employees' Post Retirement Free Medical Scheme
The Water and Power Development Authority Employees Post Retirement Free Medical
benefits have been assumed to be in exact accordance with' the 'current Rules of WAPDA,
as applied in practice.
The benefits provided to persons depend on whether the employee , opted for Cash
Medical Allowance during service.
PersOns entitled to full benefits are allowed use of all Medical and Surgical facilities
available at WAPDA Hospitals and Dispensaries. Specialist consultation is also available
if considered essential by WAPDA Medical Officer.
Employees of BPS 1 to 15 may opt for Cash Medical Allowance. They will then be
entitled only to the following restricted medical services:
• In-Door hospital treatment in case of acute illness or accident;
• Consultation with a WAPDA Medical Officer or a specialist to whom the person
is referred by a WAPDA Medical Officer;
• X-Ray and Pathological tests;
• Dental treatment.
_A revision of option from Cash Medical Allowance to full medical facilities is only ,
allowed in cases of persons developing a disease which required prolong -treatment. The
persons will be subjected to examination by Medical Board.
NAUMAN ASSOCIATES
Appendix-II
Page 13 of 14
The folloNVing demographic assumptions have'been used in the actuarial valuation.,
[Expected mortality for active Members
Death Rate
Age
0.00075
20
0.00075
21
0.00075
22
0.00080
23
0.00084
24
0.00089
25 -0.00094
26
0.00099
27
0.00104
28
0.00110
29
0.00117
30
0.00124
31
0.00132
32
0.00140
33
34 .--- - ' '0.00149 0.00159
35
0.00171
36
0.00184
37
0.00198
38
0.00214
39
0.00232
40
0.00252
41
0.00275
42
0.00301
43
0.00331
44
0.00365
45
0.00404
46
0.00449
47
0.00500
48 -
Table
Withdrawal Rate
0.12500
0.08570
0.09680
0.06530
0.04400
0.02970
0.04790
0.03110
0.02040
0.01350
0.00900
0.00600
0.01500
0.00940
0M0600
0.00390
0.00260
0.00170
0.00730
0.00450
0,00280
0.00180
0.00120
0.00080
0.00050
0.00040
0.00020
0.00010
0.00010
-
Ill-health Rate
0.00000
0.00000
0.00000
- 0.00000
0.00000
0:00000
•
0.00000
0.00000
• 0.00000
0.00000
0.00050
0.00055
0.00059
0.00064
-- - 0.00069_2 . .
0.00074
0.00078 0.00083
0.00088
0.00092
0.00097
0.00102
0.00106
0.00111
0.00116
0.00121
0.00125
0.00130
0.00210
NAUMAN ASSOCIATES
Appendix-II
49
50
51
52
53
54
55
56
57
58
59•
• 60
0.00558
0.00626
0.00703
•
0.00792
0.00896
•
'0.01014
.
0.01147
.
. 0.01295
0.01458
0.01635
.0.01825
0.00000
Page 14 of 14
0.00010
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
' 0.00000
0.00000
0.00000
0.00000
0.00000
0.00210
0.00220
0.00220
0.00230
0.00230
0.00240
0.00240
0.00250
0.00250
• 0.00260
0.00260
• 0.00000
83S
DIARY t110.
DATE / , o q
NAUMAN ASSOCIATES
M.F. (H/Q) POWER
WAPDA LAHORE.
G.M. Ft name (P)
WAPDA Ho sor,,
Diary No. 40-'•
Dated,&: 7'/
Ref No. 2153/12
September 10, 2012
Mr. Anwar-ul-Haq
713 — WAPDA House
LAHORE
Subject; 1AS-19 Reporting for Pension Scheme as at 30.06.2012
Dear Sir,
The accounting entries for the Water and Power Development Authority Employees' Pension
Scheme for 'the year 2011-2012 have been determined according to the International
Accounting Standard 19 (IAS 19) and are presented in the attached report.
A summary of the valuation results is as follows:
upees
3,632,640
Balance Sheet Liability/(Asset) as at 30.06.2012
7,410,375
If there are any questions regarding the calculations or any other aspect,. of the report, please
- feel free to contact us and we would be glad to be of assistance.
Yours faithfully,
UHAMMAb SAGHIR
Vice President
HEAD OFFICE:
7B, Block - F,
•
Gulherg IL
Lahore, PakiSian.
UAN: 042-111-628-626
Phones: 35760204, 35754036, 35753381
Fax: 35757867
KARACHI OFFICE:
Karachi, Pais-tan.
Phone: 35644900, 35644901, 3521'7157
Fax: 35682494
WWW.naMnanaSSOCiateS.COM
172Winii • ;rif(Vanalimanassociates.com
and [email protected]
NAUMAN ASSOCIATES
HEAD OFFICE:
7B, Block - F,
Gulberg II,
Lahore, Pakistan !IAN: 042-111:628-626
Phones: 35760204, 35754036, 35753381
Fax: 35757867
KARACHI OFFICE:
Karachi, Pakistan.
Phone:35217157, 3364,190:„ 35644901
Fax: 35682494
e7
NAUMAN ASSOCIATES
Table of Contents
1
Overview
1.
1
2.
1
3.
2
3
Main Report
3
Section 1
•
•
3
3
3
Pension Benefits
3
4
Section 2
•
4
,•
Assumptions
4
Actuarial Gains & Losses Recognition Policy
5
•
6
Section 3
•
6
7
Section 4
•
Changes in fresent Value of Defined Benefit Obligations
7
•
Changes in Actuarial Gains/(Losses)
7
8
Section 5
•
Charge to Profit & Loss Account for the Year 2011-2012
8
•
8
9
Section 6
•
■
sg
tt/
NAUMAN ASSOCIATES
Table of Contents
10
Section 7
•
10
10
10
Additional Disclosure items
Appendix I
Appendix II
-
11'
11
14 •
-
14
•
NAUMAN ASSOCIATES
Overview
Page 1 of 15
•
Section-1
shows some general information regardirg the valuation done in this
Report.
•
Section 2
shows some methodologies, assumptions and :actuarial gains & losses
recognition policy used:in this Report.
•
Section-3
shows the Balance Sheet Liability as at 30th June 2011.7
•
Section-4
Actuarial Gains/(Losses) during 2011-2012.
•
Section-5
shows the Charge to Profit & Loss (P&L) Account for the year
2011-2012 and Baiance Sheet Liability as at 30th June 2012.
•
Section-6
shows, the estimated Charge to Profit & Loss Account for _the year
2012-2013
•
Section-7
IAS-19.
The detailed calculations are shown in the Main Report under Sections 4 through 6.
1. Charge to P&L Account for the Year 2011-2012
The Charge to the Profit & Loss Account of the Water and Power Development
Authority in respect of its Pension Scheme for the year 2011-2012, which is detailed in
3,632,640
2. Balance Sheet Liability as at 30th June 2012
The closing Balance Sheet Liability (or asset as the case may be) of Pension benefits for
the year 2011-2012 •(i.e. as at 30th June 2012), which is detailed in Section 5, -is as
follows:
Balance Sheet Liabilit3i/(As;:et) as at 30th June 2012
7,410,375
NAUMAN ASSOCIATES
Overview<
Page 2 of 15
I' •
U 50
BalanCe Sheet Liability/(Asset) as at 30th June 2011
Amount:recognised during the year under IAS-19
Payments made by WAPDA during the year
Balance Sheet Liability/(Asset) as at 30th June 2012
I
6
1-
op p,00,,,
4,777,735
•
3,632,640
' (1,000,000)
7,410,375
NAUMAN ASSOCIATES
Main Report
Page 3 of 15
The purpose of this report is to assist the Institute in preparing the financial' statements 'for
the year 2011-2012. The report shall focus on the calculation of accounting entries related
to the Water and Power Development Authority Employees' Pension Scheme ("the
Pension Scheme") required under IAS — 19.
This Report and the disclosures provided therein are prepared for the senior management,
accounts department and auditors of the Company / Fund (if any), in respect of reflecting
relevant liabilities in the financial statements.
written consent.
The data used for the actuarial valuation of the Pension Scheme was supplied by the
Institute. A summary of the data as at the valuation date is as follows:
Number of Members
Total Monthly Pensionable Salary
Number of Pensioners
Total Monthly Pension
7,518
Rs.103,225,062
7,630
Rs.62,520,896
• Pension Benefits
A summary of the ,benefits payaole under the Pension Scheme is given in the attached
Appendix I.
NAUMAN ASSOCIATES
Main Report
Page 4 of 1 5
Projected Unit Credit (PUC) Actuarial Cost Method was used for calculating the
accounting entries in this report. This method is mandated under.IAS719,
• Assumptions
The principal and demographic assumptions used in the actuarial valuation arc given in
It is essential to elucidate here that:
compatible. _
o Discount Rate
Discount rate is determined by reference to market yields (at the balance sheet
date) on government bonds, since the long term private sector bond market is not
deep enough in Pakistan. The term of the assumed yield of the government bonds
is consistent with the estimated term of the post-employment benefit obligations.
The discount rate used for the calculations is 13% per annum.
o Rate of Increase in Pensionable Salary
Pensionable Salary for the Pension benefits constitutes the Basic Pay, Special Pay,
Qualification Pay and Senior- Post AllOwance. Its enhancement reflects the
legular/special increments and any promotional increase. It has been assumed that
the Pensionable Salary will increase at a rate of 12% per annum in future:It may be stated that the assumptions regarding the discount rate and the inflation
rate are intimately connected. During periods of inflation, both tend to rise in
conformity with each other. From an actuarial costing point of view, it :is the
difference between these two rates (i.e. discount rate and inflation rate) that
matters, and not their individual values in isolation. Thus a difference of 1%
between the discount rate (i.e. 13%) and the rate of increase in Pensionable Salary
12%) has been considered appropriate. This 1% difference is within the
locally and internationally recognised norms.
o Rate of Increase in Monthly Pensions
It has been assumed that the monthly pension for pensioners will increase at a rate
in future.
of 8% per an
—
NAUMAN ASSOCIATES
a
Main Report
Page 5 of 15
Mortality Rates
The mortality. of the pensioners, retiring other than on account Of ill-health; has
ben assumed to correspond to the Mortality Table, EFU (61-66) with a ,set-back
of five years from the actual age.
, .
The Mortality' of the pensioners, retiring on account Of ill-health, has been
assumed to correspond to the Mortality Table, EFLT (61-60 with a set-forward of
three years from the actual age.
The rates of withdrawal used in the calculations are those based' on the experience
of WAPDA and other public-sector organizations in Pakistan.
•
Actuarial Gains & Losses Recognition Policy
The policy for , the- recognition of Actuarial Gains/Losses used in this report is based on
the "minimum 10% corridor" approach mentioned under paragraph 92 of IAS-19.
However, the Standard also permits the adoption of any systematic method that can result
in faster recognition of accumulated Actuarial Gains & Losses.
NAUMAN ASSOCIATES
Main Report
Page 6 of 15
Balance Sheet Liability as at 30thJune 2011
li
,,
Ili 0, el 0040
•
Present Value of Defined Benefit Obligations (PVDBO)
as at 30`x' June 2011
• .9'06
„716
Less Fair Value of Plan Assets
Nil
later periods
21,291
..,
periods
Less Past Service Cost to be recognised in later periods
5
(4,880 272)
S
Nil
4,777,735
NAUMAN ASSOCIATES
Main Report
Page 7 of 15
_ Changes in Present Value of Defined Benefit Obligations
.,
Present Value of Defined Benefit Obligations as
at 30th June 2011
Current Service Cost forr the
Interest Cost for the year
tt an
1. ,
9,636,716
. _
1,252,773
Vested Past Service Cost due to Change in Benefits
347,650
Non-Vested Past Service Cost due to Change in Benefits
581265
Actuarial (Gain)/Loss on PVDBO
(1,000,000)
4,479,227
' 15,703,091
Actuarial (G&ns)/Losses charged to P&L during the year
21,291
(4,479;227)
Nil
(4,457,936)
_-
NAUMAN ASSOCIATES
Main Report
Page 8 of 15
Char e to Profit & toss Account for the Year 2011-2012
Interest Cost
Vested Past Service Cost Charge due to Change in Benefits
eds Thousand:
405,460
1,252,773
Nil
1,626,757
3,632,640
Present Value of Defined Benefit Obligations as
at 30th June 2012
Less Fair Value of Plan Assets
-Plus Actuarial Gains/Less Actuarial LoSses to be recOgiiisedin later
eriods
Less unrecognised Past S6rvice Cost to be recognised in later periods
Less unrecognised Transitional Liability
to be recognised in later
eriods
Total Balance Sheet Liability as at 30 th June 2012
u an
15,703,091
(4,457,936)
(581,265)
(3,253,515)
7,410,375 _
NAUMAN ASSOCIATES
Main Report
Page 9 of 15
..• Estimated Charge to Profit & Loss Account for the Year 2012-2013
ti ses,
.
Interest Cost
0 sa
458,176
2,041,402
Actuarial (Gains)/Losses Charge
262,512
Past Service Cost Charge for the year
58,127
1,626,757
4,446,968
6
(5Z
NAUMAN ASSOCIATES
Main Report
Page 10 of 15
ectiotrz
• Additional Disclosure Items
Discount rate
.
13%.per annum
Expected rate of Pensionable Salary increa::-2 in future
years
12%-per 'annum
Pension Indexation Rate
8% per annum.
Average expected remaining working life time of
employees
Average expected remaining years to Vesting as at
30.06.2012:
11 _Years
10 Years
o Actuarial Gains & Losses Recojnition Policy
The actuarial gains & losses recognition policy used in this report is based on the
"minimum 10% corridor" approach mentioned under paragraph 92 of IAS-19.
N A-c
NAUMAN A. CHEEMA
-M.Sc., FSA
- 69 -
r
NAUMAN ASSOCIATES
Appendix I
Page 11 of 15
Under
Employees' Pension Scheme
The Pension Scheme Members of Water and Power Development Authority were entitled to
the following pension benefits on normal and early retirement, death and disability as at June
30, 2012.
Normal Retirement Pension
The normal- retirement age is 60 years.
If service is less than 5 years:
•
Nil Benefit
If service is greater than 5 and less than 10 years:
• A lump sum gratuity is payable. The gratuity is calculated as per the following
formula:
Gratuity = Last Drawn Pensionable Salary x Pensionable Service
If service is greater than 10 years:
• The rate of pension at normal retirement age is 7/300 of the last drawn pensionable
-.salary for each year of service subject to a maximum service period of 30 years. The
maximum pension amount is thus limited to 70% of the last drawn pensionable salary
The employees can surrender upto a maximum of 35% of the gross pension in lieu of
a lump sum-commuted value. The commuted value at age 60 shall be calculated as per
_ -the following formula:
Commuted Value = 4 2.3719 x amount of pension surrendered x 12
Early Retirement PensionEarly retirement is applicable on the completion of 25 years of continuous service.
• the rate of pension at early retirement age is 7/300 c,f the last drawn pensionable
salary for each year of Service subject to a maximum service period of 30 years. The
maximum pension amount is thus limited to 70% of the last drawn pensionable salary
a lump sum-commuted value.
1
.0
75z
NAUMAN ASSOCIATES
Appendix I
Page 12 of 15
Death in Service
If service is less than 5 years:
• Nil
If service is greater than 5 and less than 10 years:
,tA lump sum gratuityls payable.-The gratuity is calculated. as per the following
formula:
Gratuity r= 1.5 x Last Drawn Pensionable Salary .x Service.
• The basic pension shall be 7/300 of the last drawn pensionable salary for each year of
service subject to a maximum service period of 30 years
-
-
Widow's Pension = 75% x basic pension
Widow's pension is paid to eligible children in case of death of the widow. Eligible
children are defined as legal male child under the age of 21 years and legal unmarried
daughter
In addition to the above, the widow is entitled to 25% of the commuted"value of gross
pension. The age based commutation factors are set out in the table (later in the
Appendix)
Death after Retirement
In case of death after retirement, the widow is entitled to receive 75% of the pension being
received by the deceased retiree.
Widow's pension is paid to eligible children in case of death of the widow. Eligible children
are defined as legal male child under the age of 21 years and legal unmarried daughter. In the
abgence'of.Widow and eligible children, the pension is payable to the dependents (such as
parents, widow daughter etc.) for the remaining guaranteed p'eriod
•
Ill-health Pension.
If service is less than 5 years:• Nil
If service is greater than 5 andless than 10'years:
Ifiriff(stailtrattlity is payable. The gratuity is talCtilated as per7the following
formula:
gratuity = 1.5 x Last Drawn Pensi9nable Salary x Service
• The basic pension is 7/300 of the last drawn pensionable salary for each year of
service subject to a maximum service period of 30 years.
a lump sum-commuted value.
iy
"•
NAUMAN ASSOCIATES
Appendix I
Page 13 of 15
Commutation
Following is the age - based commutation table showing commutation factors at ages
20 - 60.
' Age
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
Commutation
Factors
40.5043
39.7341
38.9653
38.1'974 .
37.4307
36.6651
35.9006
35.1372
34.3750
33.6143
32.8071
32.0974
31.3412
30.5869
29.8343
29.0841
Age
Commutation
, Factors
Age
'
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
28.3362
27.5908
26.8482
26.1009
25.3728
24.6406
23.9126
23.1840
22.4713
21.7592
21.0538
20.3555
19.6653
18.984118.3129
17.6526
52
53
54
55
56
57
58
59
60
Commutation
Factors
17.0050
16.3710
15.7517
- 15.1478
14.5602
' 13.9888
13.4340
12.8953
12.3719
NAUMAN ASSOCIATES
Append& II
Page 14 of 15
The following demographic assumptions have been used in the actuarial valuation.
Expected mortality for active Members
-
.
Age
20
21
22
23
•24
• 25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
Death Rate
0.00075
0.00075
0.00075
0.00080
0.00084
0.00089
0.00094
0.00099
0.00104
0.00110
0.00117
0.00124
0.00132
0.00140
0.00149
-0.00159
0.00171
0.00184
0.00198
- 0.00214
0.00232
0.00252
0.00275
0.00301
0.00331
0.00365
Table
Withdrawal Rate - Ill-health Rate
0.12500
0.00000
0.08570
0.00000
0.09680
:0.00000
0.06530
0.00000
0.04400
0.00000
0.02970
- 0.00000
0.04790
0.00000
0.03110
0.00000
0.02040
.
0.00000
0.01350
0.00000
0.00900
0.00050
0.00600
0.00055.
0.01500
0.00059
0.00940
0.00064
0.00600
0.00069 -0.00390
0.00074
0.00260
0.00078
0.00170
0.00083
0.00730
0.00088
0.00450
0.00092 0.00280
0.00097
0.00180
0.00102
0.00120
0.00106
_.
0.00080
0.00111
0.00050
0.00116
0.00040
0.00121
NAUMAN ASSOCIATES
Appendix II
Page 15 of 15
46
47
48
49
50
51
52
53 ,,
54 ,
55
56
57
58
59
60
0.00404
0.00449
0.00500
0.00558
0.00626
0.00703
0.00792
0.00896
0.01014
0.01147
0.01295
0.01458
0.01635
0.01825
0.00000
0.00020
0.00010
0.00010
0.00010
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
0.00000
0.00125
0.00130
0.00210
0.00210
0.00220
0.00220
0.00230
0.00230
' 0.00240
0.00240
0.00250
0.00250
0.00260
0.00260
0.00000„.
Z OZ SIM-103W MffiNNV
Bum Jamod epdm uelsPled
PAKISTAN WATER & POWER DEVELOPMENT AUTHORITY
•
,(PowerWing)
SI
Description
WAPDA AUTHORITY
Page #
L‘: Se-:11121Z7,
f
WAPDA POWER WING INFORMATION
"-'411,10f4T.
MANAGEMENT REPORT
12iI AIL CONSOLIDATED BALANCE SHEET
AAA's
a II
3
CON InrIgl.
Nu
4
•'
8
•
CONSOLIDATED INCOME STATEMENT
.7'NFIC
T 7irt.
AUDITORS REPORT - HYDROELECTRIC
•
EI
rt,
464,
41
BALANCE SHEET - HYDROELECTRIC
2 :*
INCOME STATEMENT- HYDROELECTRIC
•••
WCI:741..
r
::■
11
12
Ell
77;.04rtt
11,■
4:1
W'" r7.,
PERFORMANCE INDICATORS - HYDROELECTRIC
IP::i74:VNT
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10
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1
,
'
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4,4! EMI r1
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CASH FLOW STATEMENT - HYDROELECTRIC
•
./*° • P's
:':”.,;!;77:1*:::17::;.,14;
:.;:_;17'-,„:'- ,..,','''::
-:=.7,- .4". •'- "',
16
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17
..,
4
i
STATEMENT OF COMPREHENSIVE INCOME - HYDROELECTRIC r ■
•
18
STATEMENT OF CHANGES IN EQUITY - HYDROELECTRIC
.41
.161klidk.1:11147filtiNtitlk:Vistsigs
—ALIPARIr
NOTES TO THE ACCOUNTS - HYDROELECTRIC
•
4,4 !" C-71'14:,,771!
,s4A4-glittrAl!?
BALANCE SHEET - OTHER BUSINESS
INCOME STATEMENT - OTHER BUSINESS
• ea.:,
19
20
-r
4!S
tf:14,
WAPDA AUTHORITY
11
1
Shakil Durrani
Chairman
Syed Raghib Abbas Shah
Member (Water)
Nazakat All Shah
Acting Member (Finance)
Muhammad Qasim KI
Member (Power)
Muhammad lmtiaz Ti
Secretary WAPDA
Note: On the retirement of Mr. Shakil Durrani, Syed Raghib Abbas Shah has taken
over the charge as Chairman WAPDA on 08-09-2012.
WAPDA POWER WING INFORMATION
Muhammad Qasim Khan
Member (Power)
Management:
Auditors:
Statutory Auditors:
Auditor General of Pakistan
Corporate Auditors:
Ernest & young Ford Rhodes Sidat Hyder
Chartered Accountants
Anwar ul Haq
2
11111
..
Hasnain Afzal
General Manager (Hydro Planning)
0
Power Stations
Tarbela
Capacity (MW)
Ghazi Brotha
1,450
Mangla
Warsak
1,000
243
184
96
72
22
Chashma
Jinnah
;
Khan Khwar
Rasul
Dargai
At
Wajid Hameed
Shadiwal
20
14
14
Chichoki
13
Nandipur
General Manager Hydel (Operation)
Kuram Garhi
Renala Khurd
Chitral
Total
Muhammad Ashraf
General Manager Hydel (Development)
ANNUAL ACCOUNTS
3,478
2012
4
1
1
6,612
Ai-xauuv
I
WAPDA POWER WING
Management Report
We are pleased to present the Annual Report of WAPDA Power Wing
together with audited financial statements and the Auditor's Report on the
NEPRA regulated business i.e WAPDA Hydroelectric for the year ended on
June 30, 2012.
The financial statements of WAPDA Power Wing have been prepared within
the framework of the accounting and in accordance with generally accepted
accounting principles. The financial statements of WAPDA Hydroelectric have
also been examined by independent external auditors.
WAPDA Hydroelectric is a largest and bonafide Hydel Power Generation
organization operating under the generation license granted by the power
regulator "NEPRA" for operation, maintenance and development of hydel
power resources in Public Sector.
OPERATION
WAPDA Hydroelectric owns and operates 15 hydel power stations with
aggregated installed generation capacity of 6,612 MW. Major hydel power
stations include Tarbela (3478 MW), Ghazi Barotha (1450 MW), Mangla (1000
MW) Warsak (243 MW).
The utilization of capacity for Hydel generation is largely dependent on net
head of respective power station and quantum of water indents allowed by
IRSA. The Net Electrical Output (NEO) for the year stood at 28,235 GWh as
compared to last year NEO of 31,685 GWh with decrease in Generation 3,450
GWh, during FY 2011-12.
Generation Trend (Gwh)
35,000
30,000
25,000
20,000
15,000
10,000
5,000
N. rcli
9 ''.
cb (§) N
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cy
695
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rvti
19 19 19 19
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1 . I.
rvsz>
2012
ici
WAPDA POWER WING
Generation 2011-12
• Warsak
4%
Chashma
4%
o Khan
Khwar
1%
e
■
Others
1%
REPAIR & REHABILITATION
WAPDA Hydroelectric has managed Plant availability factor of 90% on
average, which is well above the PPA requirement. Higher availability and
better efficiency was achieved by doing timely Periodic (Annual/Bi-annual)
preventive Maintenance.
Apart from routine preventive maintenance following major repair works
were also completed:
• Installation of 19 Nos. 132/220KV SF-6 Circuit Breakers alongwith
••••
commissioning of New Bus Bar Protection Scheme and 3rd
interconnector transformer at Mangla Power Station.
•••
•
Replacement of Stator Winding Class-F of Unit No. 1 to 4, inlet
valves logging system of Units 5 to 10 and Slip ring carbon brush of
Unit-8 of Tarbela Power Station.
•••
•
Major overhaul of Unit No. 5 at Warsak Power Station
Feasibility study for up-gradation and refurbishment of old generating units
and allied equipment of Mangla Power Station
has recently been completed
by the Consultants M/S MWH(USAJ-NESPAK (JV) according to which
generating capacity of Mangla Power Station will increase from 1000 to 1300
MW due to additional water storage capacity and increased head height
available after the completion of Mangla Dam Raising Project. The process of
detail design and preparation of tender documents has been initiated.
Joint Venture of M/S RSWI Canada and DCE Pakistan Consultants have been
appointed to carry out feasibility study for rehabilitation, up-gradation and
modernization of generating units of Warsak
which also includes proposed
underground Power House of 375 MW.
PIN111111111111
POWER EXPANSION
As mandated, WAPDA is actively pursuing its development program. The
under construction Hydroelectric Projects Allai Khwar, Jinnah, Duber Khwar,
Gomal Zam Dam and Jabban Rehabilitation will be completed in FY 2012-13
whereas Golen Gole is expected to complete by 2016.
Due to limited resources, WAPDA has set strategic priority to undertake and
complete new projects having more than 18000 MW generating capacity in
phases. The priority projects of WAPDA include Tarbela 4th extension, keyal
khwar, Diamir Basha Dam, Kurram Tangi Dam, Munda Dam, Dasu and Bunji.
In addition to above, number of small/medium and Mega hydroelectric
projects, are at survey & feasibility stage.
FINANCE
Power sales revenue, which stood as Rs 39,861 million (2011: Rs 33,470
million) whilst cost of electricity stood at Rs 18,974 million (2011: 12,789
million) bringing the gross profit of Rs 20,887 million (2010: 20,681 million).
The increase in sales revenue was a result of upward revision of tariff in Dec,
2011.
The revaluation of Plant & Machinery of Hyde! Power Stations has also been
completed during the year. Plant & Machinery of existing Hydel Power Stations
has accordingly been stated at replacement/ revalued price and revaluation surplus
of Rs: 58 billion recorded in the accounts.
,
, moving forw
After successful implementation of Gene alLedger Module
ully
ccessfard
alsobeen
implementation of Store Inventory Moule has
completed during the period under report.
OTHER BUSINESSES
On restructuring of WAPDA Power Wing, WAPDA has made operation &
Development Agreement (ODA) with Ex-WAPDA, Gencos, Discos and NTDC
to provide certain business support allied services.
WAPDA Power Wing through the office of General Manager Training is still
imparting training facilities to the employees of Corporate Entities of ExWAPDA Power Wing in addition to formations of WAPDA. Moreover, WAPDA
Power Wing is also providing customs clearing services for foreign material
consignments to WAPDA formations and Ex-WAPDA Power Wing Corporate
Entities at Karachi Port through its Chief Resident Representative, Karachi
(CRRK) Office. Both these offices are Self-Financing Offices, operating on "No
Profit No Loss" basis.
WAPDA Power Wing has made equity investment in Neelum Jhelum Hydro
Power Company Ltd, WAPDA First Sukuk Company Ltd, WAPDA second
Sukuk Company Ltd, KAPCO (Kot Addu Power Company), FCIB (First Credit
Investment Bank), LCDC (Lakhra Coal Development Company), NTDC, LESCO,
GEPCO, FESCO, MEPCO, IESCO, PESCO, QESCO, HESCO, CPGCL, NPGCL,
LPGCL and JPGCL. Currently WAPDA is earning dividend income against its
shareholding in KAPCO and LCDC.
e
• ■
i 1
■
:. ■
ACKNOWLEDGEMENT
We appreciate the hard work and dedications of the employees of WAPDA
Power Wing on achieving remarkable performance during the period under
report and we hope, this spirit will continue to attain targets set for the next
year.
.. rq>„...A F›
A ar
GM ' ance (Power)
C
•
POWER WING CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2012
Rupees in thousand
2012
NEPRA Regulated
Business
-- ..
Other Business
NEPRA Regulated
Business
Other Business
JITY AND LIABILITIES
re capital and reserves
'e capital
72,522,716
9,522,000
70,179,972
9,522,000
ital reserves
88,489,646
236,918,061
74,538,430
236,776,866
215,294,761
246,440,061
144,718,402
246,298,866
54,715,389
7,747,716
44,713,745
8,465,553
aluation Surlpus
54,282,399
current liabilities
est bearing loans and borrowings
lity against assets subject to ijarah
rred grants
rred liabilities
ent liabilities
r payables
Jed Interest
term borrowings
term liabilities
•nt portion of loans and borrowings
G. MACE (POWER)
8,000,000
8,000,000
596,152
1,112,321
11,590,077
582,535
8,352,065
513,422
74,901,618
8,330,251
62,178,131
8,978,975
10,581,842
14,028,349
3,942,907
10,933,598
358,469
392,702
68,740
1,846,578
4,704,578
8,488,000
39,392,685
5,470,529
16,518,621
642,809
48,731,899
5,189,035
19,414,950
717,837
66,707,823
34,161,136
53,903,401
36,651,768
141,609,441
356,904,202
42,491,387
288,931,448
116,081,532
260,799,934
45,630,743
MEMBER (POWER)
291,929,608
WAPDA POWER WING
POWER WING CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2012
Rupees in thousand
2012
NEPRA Regulated
Business
2011
Other Business
NEPRA Regulated
Business
Other Business
ASSETS
Non current assets
Net operated assets
Capital work in progress
186,993,717
64,860,553
Investment in subsidiaries
Investment in associates
Long term investments
Notes receivables
Long term advances and receivables
Long term security deposit
324,425
1,837
252,180,532
63,657
13,429
1,386,048
3,572,563
184,874,551
8,042,686
724,668
185
198,677,787
126,574,963
60,152,022
69,146
6,596
1,386,048
4,055,640
184,391,474
8,754,831
254,412
9,351,295
1,777
260
186,983,174
208,015,290
Current assets
Stores, spare parts and loose tools
Trade debts
Advances and other receivables
Short term investments
Cash and bank balances
2,626,951
2,427,236
83,038,497
8,309,509
7,135,259
63,795,084
88,081,128
2,843,521
82,417,900
1,468,493
3,613,454
2,172,533
3,282,426
1,496,418
104,723,670
90,253,661
73,816,760
83,914,318
356,904,202
288,931,448
260,799,934
291,929,608
cv„A
G.
FINANGE (POWER)
MEMBER (POVI/Ef4
1111111 1111111 9111
-7)
!
•
POWER WING CONSOLIDATED INCOME STATEMENT AS AT 30 JUNE 2012
Rupees in thousand
2012
Sales/ Services Income
Cost of electricity
Gross profit
Operating expenses
Operating profit
2011
NEPRA Regulated
Business
Other Business
39,861,048
424,439
33,469,853
571,305
19,172,865
559,105
13,003,582
445,713
20,688,183
(134,666)
20,466,271
125,592
352,300
49,065
20,113,971
76,527
596,345
20,091,838
Other income
Hydel levies
42,589
(177,255)
1,462,174
3,133,708
844,393
21,554,012
2,956,453
20,958,364
6,840,443
Finance cost
Net profit for the year
NEPRA Regulated
Business
Other Business
3,040,847 )
3,117,374
6,895,317
14,713,569
2,956,453
14,063,047
3,117,374
4,738,822
437,875
5,674,878
870,090
9,974,747
2,518,578
8,388,169
2,247,284
A A,A
G.itfii4kNGE (POWER)
MEMBER (POWER()
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I I
El ERNST& YoUNG
111
Ernst & Young Ford Rhodes Sidat H-ider
Chartered Accountants
Mall View Building, 4- Bank Square
P0. Box No. 104, Lahore 54000. Pakistan
Tel: +9242 3721 1531-38
Fax: +9242 3721 1530 8 39
www.ey.com
I I
INDEPENDENT AUDITOR'S REPORT TO CHAIRMAN OF
Pakistan Water and Power Development AuthorityWe have audited the annexed financial statements of
(hereinafter referred as "the Hydroelectric") as at 30 June
Hydroelectric (NEPRA - Regulated Business)
2012, comprising statement of financial position and the related income statement, statement of
comprehensive income, statement of cash flows and statement of changes in equity together with the notes
forming part thereof, for the year then ended and we state that we have obtained all the information and
explanations which, to the best of our knowledge and belief, were necessary for the purposes of our audit.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with approved accounting standards as applicable in Pakistan. This responsibility includes:
designing, implementing and maintaining internal control relevant to the preparation and fair presentation
of financial statements that are free from material misstatement, whether due to fraud or error; selecting
and applying appropriate accounting policies; and making accounting estimates that are reasonable in the
circumstances.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with International Standards on Auditing as applicable in Pakistan.
Those standards require that we comply with ethical requirements and plan and perform the audit to obtain
reasonable assurance whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. the procedures selected depend on the auditor's judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's Internal
control. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Opinion
our opinion, the financial statements give a true and fair view of the financial position of the
In
Hydroelectric as of 30 June 2012, and of its financial performance and of its cash flows for the year then
ended in accordance with approved international accounting standards as applicable in Pakistan.
Emphasis of Matter
qualifying our opinion, we would like to draw attention to the note 17 to the financial statements
Without
which states that the ultimate outcome of the contingencies arising from matters discussed in note 17 to
the financial statements, cannot presently be determined, and, hence pending the resolution thereof, no
provision for the same has been made in the financial statements.
'63
it •
Charte
illi
I
Accountants
Engagement Partner' Naseem Akbar
Lahore: 26 November 2012
.
i•
•
WAPDA POWER WING
WAPDA - HYDROELECTRIC
PERFORMANCE INDICATORS
Unit
2011-12
2010-11
2009-10
2008-09
2007-08
OPERATING
Capacity
Net Electrical Output
Plant Utilization Factor
(MW)
(MkWh)
(%)
6,612
6,516
6,444
6,444
6,444
28,235
31,685
27,614
27,363
28,222
48.7%
55.5%
48.9%
48.5%
50.0%
FINANCIAL
Sales Revenue
Operating Cost
Operating Profit
EBIT
Hydel Levies
Net Profit
Average Capital Employed
I
(Min Rs)
39,861
33,470
29,092
29,013
28,467
(Mln Rs)
19,769
13,356
13,181
9,515
8,137
(Min Rs)
20,092
20,114
15,910
19,498
20,330
(Mln Rs)
21,554
20,959
20,150
22,741
24,871
(Mln Rs)
6,840
6,895
6,696
6,695
6,685
(Mln Rs)
9,975
8,388
6,835
9,925
11,013
(Mln Rs)
219,291
175,732
161,095
148,445
136,702
49,715
54,350
64,405
62,120
59,416
30,016
11,913
66,279
72,021
65,599
(Times)
0.18
0.19
0.18
0.20
(%)
0.21
9.8%
11.9%
12.5%
15.3%
18.2%
1.19
1.90
1.72
1.59
Average Long Term Debts
(Mln Rs)
Net Working Capital
(Mln Rs)
RATIOS
Turnover to Capital Employed
Return on Capital Employed
Current Ratio
(Times)
1.40
111111111111111III!
(HYDROELECTRIC - NEPRA REGULATED BUSINESS)
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2012
2011
2012
RESERVES AND LIABILITIES
Note
Rupees in thousand
Equity interest
Government of Pakistan's investment
7
72,522,716
70,179,972
Reserves
7
88,489,646
74,538,430
54,282,399
Revaluation surplus
215,294,761
144,718,402
54,715,389
44,713,745
596,152
1,112,321
Non current liabilities
Loans and borrowings
9
Deferred grants
10.
Deferred liabilities
11
11,590,077
8,352,065
66,901,618
54,178,131
Current liabilities
Other payables
12
10,581,842
3,942,907
Liability against assets subject to ijarah
13
8,000,000
8,000,000
Accrued Interest
14
358,469
392,702
Short term borrowings
15
1,846,578
4,704,578
Short term liabilities
16
48,731,899
39,392,685
9
5,189,035
5,470,529
Current portion of loans and borrowings
CONTINGENCIES AND COMMITMENTS
74,707,823
61,903,401
141,609,441
116,081,532
356,904,202
260,799,934
17
The annexed notes from 1 to 38 form an integral part of these financial statements.
1
11°1
MEMBER (POWER))
NGE(POWER)
IA
10411111mq
STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2012
2012
ASSETS
Note
2011
Rupees in thousand
Non current assets
Property, plant and equipment
18
19
252,180,532
186,983,174
Current assets
Stores and spares
Trade debts
20
2,626,951
21
2,427,236
83,038,497
63,795,084
2,843,521
22
8,309,509
23
7,135,259
1,468,493
24
3,613,454
3,282,426
04,723,670
73,816,760
356,904,202
260,799,934
I
G. • EltaNC-E (POWER)
\MEMBER (POVVeRj
a
WAPDA POWER WING
INCOME STATEMENT
FOR THE YEAR ENDED 30 JUNE 2012
2012
Note
2011
Rupees in thousand
25
39,861,048
33,469,853
26
19,172,865
13,003,582
20,688,183
20,466,271
596,345
352,300
20,091,838
20,113,971
1,462,174
844,393
21,554,012
20,958,364
6,840,443
6,895,31;
14,713,569
14,063,04-
.4,738,822
5,674,87
9,974,747
8,388,16
Sales
Cost of electricity
Gross profit
27
perating expenses
Operating
Operating profit
28
Other income
29
Hydel levies
30
Finance cost
MEMBER (POWER)
ANNUAL ACCOUNTS
2012
WAPDA POWER WING
(HYDROELECTRIC - NEPRA REGULATED BUSINESS
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JU
NE 2012
2012
CASH FLOWS FROM OPERATING ACTIVITIES
Adjustments for:
Depreciation
Finance cost
Ijarah rental
Employee benefits
Amortization of grants
Liabilities written back
Working capital changes:
0 (Increase)
/
decrease in current assets:
Trade debts
Increase / (decrease) in current liabilities:
Other payables
Cash generated from operations
Finance cost paid
ljarah rental paid
2011
Rupees in thousand
9,974,747
8,388,169
8,412,657
4, 738,822
1,614,809
4,540,680
(639,647)
82,334)
18,584,987
28,559,734
(199,715)
(1 9,243,413)
(5,465,988)
9,339,214
(2,858,000)
6,638,935
(11,788,967)
16,770,767
4,253,599
5,674,878
1,501,848
4,051,799
(360,720)
15,121,404
23,509,573
(1,002,990)
(13,542,297)
590,331
9,772,208
2,000,000
3,128,781
946,033
24,455,606
Net cash generated from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
I
Capital expenditure incurred on property, plant and equipment
Redemption sinking fund
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Interest bearing loans and borrowings
Interest bearing loans and borrowings repaid / transferred
Capital inducted by GoP
Employee benefits paid
Grants received
Net cash generated from financing activities
Net increase in cash and cash equivalents during the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
(21,018,663)
15,611,142
(4,994,846)
2,342,744
(1 ,172,761)
123,478
11,909,757
331,028
3,282,426
3 613,454
The annexed notes from 1 to 38 form an integral part of these financial statements.714.
G.
(27,453,613)
2,955,244
(5,022,805)
13,354,051
(810,955)
766,767
1 1,242,302
1,810,984
1,471,442
3,282,426
ANCE (POWER)
MEMBER (POWER;
6,2
WAPDA POWER WING
STATEMENT OF COMPREHENSIVE INCOME
2011
2012
Rupees in Thousand
9,974,747
8,388,169
Profit for the year
58,258,868
Revaluation of power generation plant assets
68,233,615
8,388,169
Total Comprehensive Income for the year
integral part of these financial statements.
A.
The annexed notes from 1 to 38 o
MEMBER (POWER)
WAPDA POWER WfNG
STATEMENT OF CHANGES IN EQUITY INTEREST
Reserve
for
development
works
(Note 7.1)
Note
Balance as at 1 July 2010
Rupees in thousand
0
66,150,261
56,825,921
122.976,182
8,388,169
GoP investment in development works
2,756,438
Transfer to reserve for development works
10,597,613
74,538,430
(8,388,169)
70,179,972
Other comprehensive income - revaluation surplus
Total comprehensive income for the
10,597,613
8,388,169
Balance as at 30 June 2011
144,718,402
9,974,747
58.258,868
year
58,258,868
18.3.1
2,342,744
(3,976,469)
9,974,747
58,258,868
9,974,747
Incremental depreciation due to revaluation
8,388,169
2,756,438
68,233,615
2,342,744
3,976,469
9,974,747
54,282,399
(9,974,747)
88,489,646
72,522,716
215,294,761
S
NCE (POWER)
MEMBER (POWER)
1
WAPDA POWER WING
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2012
1
LEGAL STATUS AND OPERATIONS
Pakistan Water And Power Development Authority (WAPDA) is a body, fully owned by the Government of Pakistan,
created by virtue of the Pakistan Water And Power Development Authority Act, 1958 (West Pakistan Act No. )00(1 of
1958), commonly khown as WAPDA ACT, as amended from time to time. The statutory mandate of WAPDA is to
develop and utilize the water and power resources of Pakistan on a unified and multipurpose basis. WAPDA remained
empowered among others, to frame schemes for the generation, transmission and distribution of power and the
construction, maintenance and operation of power houses and grids.
In line with the Strategic Plan 1992 approved by the Cabinet Committee, the WAPDA Power Wing has been restructured
comprising of the Generations, Distribution and Transmission activities . Assets and liabilities relating to the distribution
activities were transferred to the 8 Distribution Companies (DISCOS) on 01 July 1998 while assets and liabilities relating
to generation (other than hydel generation activities) and transmission facilities were transferred to the 4 Generation
Companies (GENC0s) and National Transmission and Despatch company (NTDC) on 01 March 1999 respectively.
NEPRA has issued Generation License # GL(Hydel) /05 /2004 to WAPDA on 03 November 2004 valid for Thnty (30)
years for its Hydel power stations. As modified-II vide letter date 20 June 2011 issued by NEPRA, currently WAPDA
generating power from following hydel power stations:
+ Nandipur
+ Tarbela
+ Shadiwal
+ Ghazi Brotha
+ Chichoki
+ Mangle
+ Kuram Garhi
+ Warsak
+ Renala Khurd
+ Chashma
+ Chitral
+ Rasul
+ Khan Khawar
The management of Hydroelectric has prepared accounts under NEPRA (Uniform System of Accounts) Rules, 2009 and
decided to segregate the operation & development of Hydel activities (regulated) from non core activities (nonregulated). The Regulated business comprises activities purely from the Hydel activities (Generation & Development of
hydel electricity) and non regulated business includes services from GM Training, Chief Resident Representative
Karachi (CRRK), Investing & Treasury function.
1.1
EXTRACTS FROM "WAPDA ACT 1958"
id down in Section 22 of WAPDA Act 1958, the Hydroelectric - NEPRA regulated business Funds shall consist of:
As la
Grants made by the Governments,
,
Loans obtained from the Govemments
,
droelectnc Grants made by the local bodies as required by the Governments
Sale proceeds of bonds, debenture, commercial paper or other securities issued by the Hy
a)
b)
c)
d)
NEPRA regulated business and dividends,
Loans obtained by the Hydroelectric - NEPRA regulated business with special or general sanction of the
e)
opment c
econstruction and Develas may b
Internationalhe
r
Rh
terms
and
conditions
andfosuc
Foreign aid and loans obtained from the uarantee of [t Bank
otherwise, with the sanction and, under g
approved by the Government) and,
All other sums received by the Hydroelectric - NEPRA regulated business.
Government,
f)
9)
Regarding fixing rate for sale of power, Section 25 of the WAPDA Act, 1958 provides that:
The rate at which the Hydroelectric - NEPRA regulated business shall sell power be so fixed as to provide for meet
f assets, the redemption at due time of loans other than the
the operating cost, interest charges and depreciation of
covered by depreciation, the payment of any taxes and a reasonable return on investment.
RA regulated business shall maintain comp'
As provided inbooks
Section
26
of
WAPDA
Act,
1958
the
Hydroelectric
NEP
of accounts in such form as may be prescribed by it, provided that separate accounts shall
-
1.2 REFERENCE FROM "CONSTITUTION OF PAKISTAN 1973"
The Article 161(2) of the Constitution of Pakistan provides that the net profits earned by the Federal Government, or any
undertaking established or administered by the Federal Government i.e.WAPDA as determined by the Presidential
Order #3 of June 1991, from the bulk generation of power at a hydro-electric station shall be paid to the Province on
which the hydro-electric station is situated.
For the purpose of this cISuse " net profits" shall be computed by deducting from the revenues accruing from the bulk
supply of power from the bus-bar of a hydro-electric station at a rate to be determined by the Council of Common
Interest. Operating expenses of the station which shall include any sums payable as taxes , duties, interest or return on
investment, and depreciations and element of obsolescence, and over-heads, and provision for reserves.
2
STATEMENT OF COMPLIANCE
These financial statements have been prepared in accordance with approved accounting standards as applicable in
Pakistan. Approved accounting standards comprise of such International Financial Reporting Standards (IFRSs) issued
by the International Accounting Standards Board and adopted by the Institute of Chartered Accountants of Pakistan
(ICAP), Islamic Financial Accounting Standards issued by ICAP and directives issued by National Electric Power
Regulatory Authority (NEPRA) and WAPDA.
I
3
NEW AND AMENDED STANDARDS AND INTERPRETATIONS BECOME EFFECTIVE
3.1
The hydroelectric - NEPRA regulatory business has adopted following new and amended IFRS and IFRIC interpretations
which became effective during the year:
IFRS 7 - Financial Instruments: Disclosures (Amendment)
IAS 24 - Related Party Disclosures (Revised)
IFRIC 14 - Prepayments of a Minimum Funding Requirement (Amendment)
In May 2010, International Accounting Standards Board (IASB) issued amendments to various standards primarily with a
view to removing inconsistencies and clarifying wording. These improvements are listed below:
IFRS 7 - Financial Instruments: Disclosures - Clarification of disclosures
IAS 1 - Presentation of Financial Statements - Clarification of statement of changes in equity
IAS 34 - Interim Financial Reporting - Significant events and transactions
IFRIC 13 - Customer Loyalty Programmes - Fair value of award credits
The adoption of the above standards, amendments, interpretations and improvements did not have any material effect
on the financial statements.
3.2
I
Standards, Interpretations and Amendments to Published Approved Accounting Standards that are not yet
effective
The following revised standards, amendments and interpretations with respect to the approved accounting standards as
applicable in Pakistan would be effective from the dates mentioned below against the respective standard or
interpretation:
Effective Date
(Annual periods
Standard or Interpretation
beginning on or after)
IFRS 7 - Financial Instruments: Disclosures - Ammendments enhancing
1 January 2013
discosures about offsetting of financial assets and financial liabilities.
IAS 1 - Presentation of Financial Statements - Amendments to revise the
way other comprehensive income is presented.
1 July 2012
IAS 12 - Income Taxes (Ammendment) - Recovery of underlying assets.
1 January 2012
IAS 19 - Employee Benefits - Amended Standard
resulting from the Post-Employment Benefits and
Termination Benefits projects.
1 January 2013
IAS 32 - Offsetting Financial Assets and Financial
Liabilities - (Ammendment).
1 January 2014
IFRIC 20 - Stripping Costs in the Production
Phase of a Surface Mine.
1 January 2013
The Hydroelectric - NEPRA regulated business expects that the adoption of the above revisions, amendments and
interpretations of the standards, except for IAS 19 - Employee Benefits, will not affect the Hydroelectric - NEPRA
regulated business's financial statements in the period of initial application.111
11111111111111111111
CRITICAL ACCOUNTING JUDGEMENTS AND ESTIMATES
4
The preparation of financial statements in conformity with IFRSs requires management to make judgments, estimates
and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and
expenses. The estimates and associated assumptions are based on historical experience and various other factors that
are believed to be reasonable under the circumstances, the results of which form the basis of making judgment about
carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from
these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognized in the period in which estimates are revised if the revision affects only that period, or in the period of the
revision and future periods if the revision affects both current and future periods.
Judgments made by the management in the application of IFRSs that have significant effect on the financial statements
and estimates with a significant risk of material adjustment in the next year are discussed in the ensuing paragraphs.
4.1
Useful lives of property, plant and equipment and their impairment
The Hydroelectric - NEPRA regulated business reviews the useful lives of property, plant and equipment on regular
basis. Any change in the estimates in future years might affect the carrying amounts of the respective items of property,
plant and equipment with a corresponding effect on the depreciation charge and impairment.
4.2
Provisions for obsolescence for stores, spare parts and loose tools
The Hydroelectric - NEPRA regulated business reviews the amount of provision for obsolescence for stores, spare parts
and loose tools each year. Any change in the estimates in future years might affect the carrying amounts of the store,
spare parts and loose tools.
4.3
Provision for doubtful debts
Trade debts and other receivables are carried at original invoice amount less an estimate made for doubtful trade debts
and other receivables based on review of outstanding amounts at the year end.
ACCOUNTING CONVENTION
5
These financial statements have been prepared under historical cost convention except for exchange differences as
referred in Note 6.13.
6
SIGNIFICANT ACCOUNTING POLICIES
6.1
Reserve for development works
Reserve for development works is recognized in accordance with the provisions available in The Constitution of th
Islamic Republic of Pakistan and NEPRA tanff petition. This reserve would be used for the construction of newiongoin
hydel power development projects through Annual Development Plans of the Government of Pakistan. Such reserve
are created from retained earnings.
6.2
Ijarah
The Hydroelectric - NEPRA regulated business recognizes ijarah payments for ljarah agreements executed after 01 Jt.
2007 as an expense in the income statement on a straight line basis over the ijarah term. iv&
WAPDA POWER WING
6.3
Grants
Grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions
will be complied with. When the grant relates to an expense item, it is recognised as income over the period necessary
to match the grant on a systematic basis to the costs that it is intended to compensate. Where the grant relates to an
asset, itasset.
is recognised as deferred income and released to income in equal amounts over the expected useful life of the
related
Where the Hydroelectric - NEPRA regulated business receives non-monetary grants, the asset and the grant are
recorded
at nominal
amounts and released to the income statement over the expected useful life of the relevant asset
by
equal annual
installments.
6.4
6.4.1
Property, plant and equipment except freehold land and certain assets disposed off and leased back during previous
yearsisare
stated
at cost or revalued amount less accumulated depreciation and any identified impairment loss. Freehold
land
stated
at cost.
Subsequent costs are included in the asset's carrying amount or recognized as a separate asset, as appropriate, only
when it is probable that future economic benefits associated with the item will flow to the Hydroelectric - NEPRA
regulated business and the cost of the item can be measured reliably. All other repair and maintenance costs are
charged to income statement during the period in which they are incurred.
Depreciation is charged to income statement on straight-line method so as to write off the cost of property, plant and
equipment over theiR estimated remaining useful lives at the rates specified in note 18. However, depreciation charged
on assets that directly relates to construction and acquisition of other assets is included in the cost of such assets.
Depreciation on addition to property, plant and equipment is charged from the month in which the asset is available for
use and continued till the month of disposal.
An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are
expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference
between
the net disposal proceeds and carrying amount of the asset) is included in the income statement in the year the
asset
is derecognized.
I
The carrying amounts of the Hydroelectric - NEPRA regulated business's assets are reviewed at each statement of
financial position date to determine whether there is any indication of impairment. If such indication exists, the
recoverable amount of such asset is estimated. An impairment loss is recognized wherever the carrying amount of the
asset exceeds its recoverable amount. Impairment losses are recognized in income statement. A previously recognised
impairment loss is reversed only if there has been a change in the estimates used to determine the asset's recoverable
amount since the last impairment loss was recognised. If that is the case, the carrying amount of the asset is increased
to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined,
net
of depreciation,
income
statement. had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in
Surplus arising on revaluation of power generation plant assets is credited to surplus on revaluation of fixed assets
account. Deficit arising on subsequent revaluation of fixed assets is adjusted against the balance in the above
mentioned surplus account. The surplus on revaluation of fixed assets to the extent of incremental depreciation charged
on the related assets, is transferred directly to reserves.
Depreciation for the year is based on economic useful life of individual assets. Depreciation at full rate is charged in the
month of purchase/completion and no depreciation is charged in the month of disposal. No depreciation is to be
charged when an asset is fully depreciated. 11..l
.•
Following depreciation rates are applied:
S. No.
•
Description of Assets
Civil Works/buildings
1
Dams & Reservoirs
Generation Plant & Equipments
2
a.
b.
Turbines
Generators (Class - F Insulation)
c.
Generators (Class - B Insulation)
d.
e.
GIS Swith Gear
Switchyard/transformer/transmission equipment
f.
MV/LV Swith gear Control & Protection Equipment
g.
Telecommunication and SCADA Equipment
h.
Cranes
Trash Rack and Cleaning Machines
i.
j.
Depreciation
Rate
2%
2%
3.5%
2.842%
2.820%
3.30%
1.99%
3.96%
3.96%
4.987%
3.30%
Truck Trailer
HV Circuit Breaker Air Blast Type
k.
I. HV Circuit Breaker SF-6 Type
3
4
5
6
Mobile Plant & Equipments
Other Equipments (All others except computer accessories)
Computer Accessories
Assets subject to ijarah
3.30%
4.95%
3.96%
3.30%
20%
10%
25%
7%
6.4.2 Capital work in progress
Capital work in progress is stated at cost less accumulated impairment losses, if any.
Projects of capital work in progress are transferred to operational formations of the Hydroelectric - NEPRA regulatE
business, when 100% progress is certified by the consultants and verified by the Hydroelectric - NEPRA regulatE
business's own engineers.
6.5
Stores are valued at moving average cost method, except items in transit which are stated at cost comprising invoi
value plus incidental charges thereon.
Stores in transit are valued at invoice value plus other charges incurred thereon.
6.6
Trade debts
Trade debts and other receivables are carried at original invoice amount less an estimate for doubtful trade debts
other receivable based on review of outstanding amounts at the year end. Balances considered bad and irrecoverE
are written off when identified.
6.7
Cash and cash equivalents
For the purpose of statement of cash flows cash and cash equivalents comprise of cash in hand, cash at bank and s
term highly liquid investment, that are readily convertible to known amount of cash and which are subject tc
insignificant risk of change in value.
6.8
Revenue recognition
Revenue from the sale of electricity is recognized on transmission of electricity supplied to the National Transmit
and Despatch Company Limited.
Profit on bank deposit is recognized using effective interest method. lie'- •
6.9
Hydel levies
Hydel levies including net hydel profit paid to Khyber Pakhtunkhwa is recognised in income statement.
6.10 Taxation
Any income of the Pakistan Water & Power Development Authority (WAPDA) established under the Pakistan Water &
Power Development Authority Act 1958 is exempt from income tax under clause-66(xvi) of the Second Schedule of (Part!) to the Income Tax Ordinance, 2001.
6.11 Staff retirement benefits
Defined benefit plans
The Hydroelectric - NEPRA regulated business operates its own pension, post retirement free electricity and medical
benefits scheme for its employees. The liabilities have been determined by consulting the actuaries on the basis of
actuarial valuation. Contributions towards the liabilities are made on the basis of actuarial valuation and are presently
charged to income statement. The principal assumptions used in this valuation are as under.
Expected rate for discounting liabilities
Expected rate for increase in pensionable salary
Expected rate for increase in cost of pensioners
Expected rate for increase in medical cost
Expected rate for increase in electricity cost
Average expected remaining working life
Free
electricity
benefits
13%
Free
medical
benefits
13%
Pension
13%
12%
8%
12%
12%
11 years
11 years
11 years
6.12 General provident fund and WAPDA welfare fund
WAPDA operates self contributed General Provident Fund and WAPDA Welfare Fund for its employees. Deductions are
made from the salaries of the employees and remitted to the funds and afterward utilized as per SOPs approved by
WAPDA.
6.13 Foreign currencies
I
Foreign currency transactions are recorded using the rate of conversion applicable on the date of transaction. All
monetary assets and liabilities in foreign currencies are translated at exchange rates prevailing at the statement of
financial position date except in the case of foreign currency loans covered by the State Bank of Pakistan's Exchange
Risk Coverage Scheme which are translated at the rates provided under the scheme. Exchange differences for the
period up to the date of commissioning of assets financed out of foreign currency loans are capitalized to the extent they
are eligible for capitalisation. All other exchange differences are charged to income statement.
6.14 Financial assets (Initial recognition)
Financial assets within the scope of IAS 39 are classified as financial assets at fair value through profit or loss, loans
and receivables, held-to-maturity investments, available-for-sale financial assets as appropriate. The Hydroelectric NEPRA regulated business determines the classification of its financial assets at initial recognition.
Financial assets are recognized initially at fair value plus, in the case of investments not at fair value through profit or
loss, directly attributable transaction costs.
The Hydroelectric - NEPRA regulated business's financial assets include cash and cash equivalents, held-to-maturity
investments, and loans and other receivables, quoted and unquoted financial instruments.
Subsequent measurement
The subsequent measurement of financial assets depends on their classification as follows:
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss includes financial assets held for trading and financial assets
designated upon initial recognition at fair value through profit or loss. Financial assets are classified as held for trading if
they are acquired for the purpose of selling in the near term. Financial assets at fair value through income statement are
carned in the statement of financial position at fair value with gains or losses recognized in the income statement.
The Hydroelectric - NEPRA regulated business has neither designated any financial assets nor currently has any
financial asset at fair value through profit or loss.ilA
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an
active market. Such financial assets are carried at amortized cost using the effective interest rate method. Gains and
losses are recognized in the income statement when the loans and receivables are derecognized or impaired, as well as
through the amortization process.
Held-to-maturity investments
Non-derivative financial assets with fixed or determinable payments and fixed maturities are classified as held-tomaturity when the Hydroelectric - NEPRA regulated business has the positive intention and ability to hold it to maturity.
After initial measurement held-to-maturity investments are measured at amortized cost using the effective interest
method. This method uses an effective interest rate that exactly discounts estimated future cash receipts through the
expected life of the financial asset to the net carrying amount of the financial asset. Gains and losses are recognized in
the income statement when the investments are derecognized or impaired, as well as through the amortization process.
Available-for-sale financial assets
Available-for-sale financial assets are non-derivative financial assets that are designated as available-for-sale or are not
classified in any of the three preceding categories. After initial measurement, available-for-sale financial assets are
measured at fair value except the investment in unquoted equity shares which are carried at cost with unrealized gains
or losses recognized directly in equity until the investment is derecognized, at which time the cumulative gain or loss
recorded in equity is recognized in the income statement, or determined to be impaired, at which time the cumulative
loss recorded in equity is recognized in the income statement.
6.15
Financial liabilities
Initial recognition and measurement
Financial liabilities within the scope of IAS 39 are classified as financial liabilities at fair value through profit or loss, loans
and borrowings, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. The
Hydroelectric - NEPRA regulated business determines the classification of its financial liabilities at initial recognition. All
financial liabilities are recognised initially at fair value and in the case of loans and borrowings, plus directly attributable
transaction costs.
Subsequent measurement
The measurement of financial liabilities depends on their classification as follows:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss includes financial liabilities held for trading and financial liabilities
designated upon initial recognition as at fair value through profit or loss.
Financial liabilities are classified as held for trading if they are acquired for the purpose of selling in the near term. This
category includes derivative financial instruments entered into by the Hydroelectric - NEPRA regulated business that are
not designated as hedging instruments in hedge relationships as defined by IAS 39. Separated embedded derivatives
are also classified as held for trading unless they are designated as effective hedging instruments.
Gains or losses on liabilities held for trading are recognised in the income statement.
Financial liabilities at amortised cost
After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using the
effective interest rate method. Gains and losses are recognised in the income statement when the liabilities are
derecognised.
Derecognition
A financial liability is derecognised when the obligation under the liability is discharged, cancelled or expires.
Offsetting of financial assets and financial liabilities:
A financial asset and a financial liability is offset and the net amount is reported in the statement of financial position if
the Hydroelectric - NEPRA regulated business - regulated business has legal enforceable right to set off the recognized
amount and intends either to settle on a net basis or to realize the assets and settle the liability simultaneously.
Corresponding income on assets and charge on liability are reported at net amount. 11,..1
WAPDA POWER WING
7
EQUITY INTEREST
GoP investment
Reserve for developmpnt works
2012
Note
(7.1)
(7.2)
2011
Rupees in thousand
72,522,716
70,179,972
88,489,646
74,538,430
161,012,362
144,718,402
7.1
GoP investment in WAPDA Hydroelectric represents funds provide by the GoP as grant for Diamir
Basha, Mangla Dam raising and Gomal Zam Hydel Power Projects from time to time .This also includes
induction by WAPDA from its businesses/investments not covered under the license issued by NEPRA.
7.2
Provision for reserve for development works has been
created in accordance with policy stated in note
6.1. The GoP has allowed to plough back/ invest these reserves in the construction of new/ongoing
Hydel power development projects through Annual Development Plans of the Government of Pakistan.
8
REVALUATION SURPLUS
Note
Other comprehensive income
2012
2011
Rupees in thousand
58,258,868
(3,976,469)
54,282,399
9
LOANS AND BORROWINGS
Foreign Currency Loans :
Foreign relent loans
(9.1)
29,668,003
(9.2)
21,464,836
9,922,890
51,132,839
41,169,400
3,768,495
4,248,977
253,948
158,054
Other Loans- local currency:
Cash development loans
31,246,510
Less: Current portion shown under current liabilities
Foreign relent loans
Cash development loans
Suppliers' credit
Less: Current portion shown under current liabilities per,
(9.3)
4,022,443
4,407,031
47,110,396
36,762,369
8,771,585
9,014,874
1,166,592
1,063,498
7,604,993
7,951,376
54,715,389
44,713,745
9.1
Foreign Relent Loan
Rate of
Loan No.
ADB-701-PAK
ADB-702-PAK
ADB-1143-PAK
ADB-1144-PAK
ADB-1424-PAK
CIDA LOAN 880-PAK
880-PAK-3230
880-PAK-2872
FRENCH BANK CREDIT
FRENCH STATE CREDIT
KFW-9566316
CITI Bank of Japan
JAXIUM BANK LOAN
Pk-P-47
Pk-P-48
EIB
3RD SWISS MIXED CREDIT
IBRD-3107-PAK
IBRD-3965-PAK
IDB-PAK-0117
AFD Credit Facility
Kuwait Fund Loan No. 742
Saudi Fund Loan No. 10/479
KFW-320517
9.1.1
Installments
Interest outstanding
as on
Per
30 June 2012
Annum
11.00%
11.00%
14.00%
14.00%
14.00%
11.00%
11.00%
11.00%
11.00%
11.00%
14.00%
11.00%
11.00%
17.00%
17.00%
17.00%
11.00%
11.00%
3.84%
17.00%
15.00%
17.00%
17.00%
15.00%
1
1
5
5
9
1
1
1
7
7
11
13
3
8
4
1
4
4
14
16
13
13
32
Repayment
commencement /
Maturity
1993/2013
1993/2013
1997/2017
1997/2017
2001/2021
1993/2013
1993/2013
1993/2013
1999/2019
1999/2019
2003/2023
2005/2025
1995/2015
2005/2020
1999/2012
2001/2016
1993/2013
1996/2016
2001/2016
2008/2026
2011/2028
2011/2025
2011/2025
2012/2031
2011
2012
Rupees in thousand
94,322
16,948
450,809
543,393
4,237,326
13,166
22,256
16,063
214,123
191,012
3,270,820
1,376,546
2,579
4,555,397
486,309
3,676
15,644
4,530,776
8,360,735
699,040
110,772
341,994
114,297
29,668,003
188,634
33,905
540,971
652,073
4,708,140
26,325
44,513
32,131
246,912
216,100
3,568,167
1,482,434
3,438
5,124,821
617,264
607,909
7,351
19,556
5,663,470
6,674,008
458,736
110,772
218,880
31,246,510
These loans are obtained from foreign financial institutions by the Government of Pakistan and are relent to the Hydroelectric - NEPRA Regulated Business and are secured by way of Government
Guarantee in favour of thoseinstitutions. Further, the the Hydroelectric - NEPRA Regulated Business is
responsible for repayment to Government of Pakistan.
9.2 Cash Development Loan
Installments
outstanding
as on
30 June 2012
1997-98
1998-99
2005-06
2006-07
2007-08
2008-09
2009-10
2011-12
17.50%
17.50% _
9.79%
11.78%
10.14%
13.65%
13.17%
12.64%
11
12
19
20
20
20
20
20
2011
2012
Rupees in thousand
1997/2023
1998/2024
2005/2031
2006/2032
2007/2033
2008/2034
2010/2035
2018/2037
, ,292,600
950,365
504,663
6,577,729
159,750
350,383
87,500
1,292,500
.14,700,000
21 464 836
9,922,890
922,298
492,289
1:4,7P5)
,150,83
.87,500 ;
WAPDA POWER WING
9.2.1
9.3
10.
These Loans have been obtained from Federal Government for Hydel development projects feasibility
studies and payment of net Hydel profit to provincial Government of Khyber Pakhtunkhwa. The loan term
is of 25 years with 5 years as grace period for principal repayment.
This represents supplier's credit facility for the construction of Jinnah Hydro Power Project, a turn key
project against the sanctioned limit of US $ 108.8 million (2011: US $ 108.8 million). The loan is
repayable in fourteen years inclusive of four years grace period, in 20 semi annually installments starting
from 18 August 2010. Rate of mark-up is 5% annually with no floor and no cap (2011: 5% annually). The
loan is secured through stand by letter of credit to back issuance of 20 promissory notes issued at the
time of commencement of the project in 2006.
DEFERRED GRANTS
Federal Government grants
Other grants
10.1
2012
Note
(10.1)
424,833
(10.2)
171,319
536,767
596,152
1,112,321
575,554
Federal Government grants
Balance as on 01 July
Grants amortized during the year
Closing balance '
10.2
2011
Rupees in thousand
575,554
706,274
(150,721)
(130,720)
424,833
575,554
Other grants
Balance as on 01 July
Grants received during the year
536,767
(10.2.1)
Grants amortized during the year
Closing balance
•
10.2.1
11
766,767
(488,926)
(230,000)
171,319
536,767
This represents grant received for the replacement of stator windings of unit no 4 at Tarbela Power
Station under the USAID agreement. It has been amortized against the repair and maintenance cost
incurred on the said replacement appearing in the cost of electricity.
DEFERRED LIABILITIES
2012
Note
WAPDA Second Sukuk Company Limited
Employee benefits
11.1
123,478
2011
Rupees in thousand
(11.1)
1,847,167
1,977,074
(11.2)
9,742,910
6,374,991
11,590,077
8,352,065
This represents ijarah rental payable to WAPDA Second Sukuk Company Limited against ijarah
agreement dated 2 July 2007 in respect of certain Tarbela Dam power generation machines. The rental
is payable in bi-annual installments and will be fully retired at 13 July 2017.
Break up of Ijarah rentals payable
With in one year
With in one to five years
Over five years
2012
2011
Rupees in thousand
1,501,848
1,505,963
6,011,507
6,011,507
49,376
1,551,224
7,562,731
9,068,694
2012
11.2
Post employment benefits
Free
medical
facility
Particulars
Free
electricity
facility
Pension
Total
----Rupees in thousand--------These are composed of:
Present value of defined benefit obligation
14,931,968
20,254,337
(4,297,387)
(5,754,543)
(554,651)
(554,651)
(305,474)
(3,104,548)
(4,202,233)
2,031,808
735,720
6,975,382
9,742,910
1,327,985
484,082
4,562,924
6,374,991
833,992
328,699
3,377,989
4,540,680
2,161,977
812,781
7,940,913
10,915,671
3,502,623
(678,604)
Unrecognized actuarial gains/(losses)
1,819,746
(778,552)
Unrecognised past service cost
Unrecognized additional liability due
(792,211)
to application of IAS-19
Liability recognized in the statement of
financial position
Movement in net liability
Liability at the beginning of the year
Charge for the year
(130,169)
Benefits paid during the year
(77,061)
(965,531)
(1,172,761)
2,031,808
735,720
6,975,382
9,742,910
Current service cost
119,036
56,688
700,316
876,040
Interest cost
Liability charged due to application of IAS-19
322,830
120,814
1,164,953
1,608,597
392,126
151,197
1,512,720
2,056,043
833,992
328,699
3,877,989
4,540,680
Changes in the present value of defined benefit obligation are as follows:
9,203,439
939,621
2,510,679
Opening defined benefit obligation
12,653,739
Liability at the end of the year
Charge for the year
•
Service cost
119,036
56,688
700,316
876,040
Interest cost
322,830
120,814
1,164,953
1,608,597
Benefits paid
(130,169)
680,247
Actuarial (gains)/ losses
(77,061)
779,684
Non vested past service costs
Closing defined benefit obligation T,A-
3,502,623
MNURI Pi!
1,819,746
(965,531)
(1,172,761)
4,274,140
5,734,071
554,651
554,651
14,931,968
20,254,337
)1'
WAPDA POWER WING
2011
Post employment benefits
Free
medical
facility
Particulars
Free
electricity
facility
Pension
Total
--------------------------Rupees in thousand-------
These are composed of:
Present value of defined benefit obligation
Unrecognized actuarial gains/(losses)
Unrecognized additional liability due
to application of IAS-19
Liability recognized in the statement of
financial position
2,510,679
939,621
9,203,440
12,653,740
6,650
3,069
20,334
30,053
(1,189,344) (458,608) (4,660,850) (6,308,802)
1,327,985
484,082
4,562,924
652,126
246,104
2,235,917
777,830
3,134,147
295,782
2,978,187
1,429,956
4,051,799
541,886
5,214,104
7,185,946
(101,971)
1,327,985
(57,804)
(651,180)
4,562,924
(810,955)
6,374,991
6,374,991
Movement in net liability
Liability at the beginning of the year
Charge for the year
Benefits paid during the year
Liability at the end of the year
Charge for the year
Current service cost
Interest cost
Liability charged due to application of IAS-19
484,082
69,004
284,137
109,033
195,751
1,060,059
424,689
162,651
1,722,377
777,830
2,309,717
295,782
2,978,187
4,051,799
24,098
Changes in the present value of defined benefit obligatio
n are as follows:
Opening defined benefit obligation
2,259,509
864,294
8,598,810
Service cost
69,004
24,098
195,751
Interest cost
284,137
109,033
1,060,059
Benefits paid
(101,971)
(57,804)
(651,180)
Closing defined benefit obligation
2,510,679
939,621
9,203,440
288,853
1,453,229
11,722,613
288,853
1,453,229
(810,955)
12,653,740
2012
12 OTHER PAYABLES
Note
Due to other formations/ wings of Authority
Projects clearing accounts
Net hydel profit payable to Khyber Pakhtunkhwa
Water usage charges payable to A.J.K Government
Water Management Charges Payable to IRSA
Other liabilities T,A .
111111111111111111
(12.1)
2011
Rupees in thousand
769,817
674,025
3,787
6,144
4,500,000
500,000
307,809
455,019
31,368
4,969,061
2,307,719
10,581,842
3,942,907
•I
2011
2012
Rupees in thousand
12.1 Due to other formations/ wings of Authority
677,513
Coordination Wing (HOC).
659,798
92,304
Water wing
14,227
Other
769,817
674,025
8,330,933
8,376,800
LIABILITY AGAINST ASSETS SUBJECT TO IJARAH
13
Total liability against assets subject to ijarah
Less:
Interest payable with in one year
Present value of the obligation
(330,933)
(376,800)
8,000,000
8,000,000
The Hydroelectric has entered into sale and leaseback arrangement resulting into finance lease of
Mangla Dam Power generation equipment. The lease carries markup at the rate of 6 month KIBOR plus
35 bps (2011: 6 month KIBOR plus 35 bps). The amount is repayable in one installment on expiry of
lease term i.e. 22 October 2012.
14
Note
ACCRUED INTEREST
2011
2012
Rupees in thousand
Loans from banking companies:
Long term loans
358,469
392,702
1,846,578
4,704,578
15 SHORT-TERM BORROWINGS
Others (Financing for Mangla and Gomal Zam Dam)
(15.1)
This represents financing for Mangla Dam Raising Project arranged by Water and Power Development
Authority (Water Wing). It is payable to Water Wing and carries mark up @ 11.78% (2011: 11.78%). It is
unsecured and payable on demand.
16
SHORT TERM LIABILITIES
Note
Payable to GoP (Debt service liability)
(16.1)
(16.2)
Payable to Provinces
2012
2011
Rupees in thousand
, 46,324,714
38,226,571
',1,16,802
23,207
1,142,907
2,390,383
' 48,731,899
Other liabilities
39,392,685
16.1
The Hydroelectric's liability towards long term loans along with markup (paid by GoP) has been
transferred to debt service liability towards GoP.
16.2
This represents amount payable to Governments of Punjab, Khyber Pakhtunkhwa and Sindh for 4%
return on assets transferred to WAPDA from these provinces at the time of unbundling of WAPDA.11,A .
1111111111111114
WAPDA POWER WING
17 CONTINGENCIES AND COMMITMENTS
17.1 Contingencies
lit
17.1.1 WAPDA First Sukuk Company Limited (WFSC), associated company of WAPDA, has issued Sukuk
certificates valuing Rs. 750 million to National Fertilizer Corporation Pakistan (Pvt) Limited (NFC). During
2009, it was discovered that out of Rs. 750 million, a certificate valuing Rs. 180 million was fraudulently
transferred to a ghost company , Swift Engineering Solution (SES), at the time of sale of such certificate
to Meezan Investment Management Limited (MIML) by SES subsequent to the mentioned transfer. Upon
the occurrence of fraud, WFSC has lodged a case with Federal Investigation Agency (FIA) to probe out
the matter which is still in progress. WFSC has made payment of profit on Rs. 180 million to MIML (Rs.
13.64 million) on the condition that NFC will pay back the amount of Rs. 13.64 million if certificate
amounting to Rs. 180 million was actually transferred by NFC to SES. However, 8th, 9th, 10th and 11th
year installments have been deposited in the court on the its order. MIML being affectee has also filed a
suit against the WFSC for the validity of its transaction with SES. As the outcome of the Federal
Investigation Agency's report and the filing of recovery suits against the culprits and the court decision on
suit filed by MIML, is not finalized, the determination of the title of the Sukuk Certificate holders to the
extent of Rs. 180 million cannot be ascertained. However, WFSC is contingently liable to pay the half
year profit to the genuine certificate holders and to bear the loss of Rs. 180 million on final redemption of
the Sukuk in the year 2012.
According to the ljarah Agreement, Purchase agreement and Service Agency Agreement, all cost and
expenses of the Lessor (WFSC) are to be born by the Lessee (WAPDA) . So, if outcome of the case
adversely affect the WFSC, then it will be the liability of WAPDA as per agreements between WAPDA
and WFSC. However, no provision for the same has been made in these financial statements as the
management and legal counsel of Hydroelectric expect favorable outcome of the matter.
17.1.2 WAPDA Hydroelectric (Power Wing) is also defending by engaging independent legal counsels,
applications lodged from time to time by its employees for service related matters like reinstatement,
promotion, seniority, correction of date of birth and litigation cases filed by land owners / contractors etc
relating implementation of court orders, payment of Zila Council fee and compensation against affected
land etc. The management believes that no court notice is un-attended and no court order is un-complied
which might have any adverse affect on the financial statements for the period under report.
17.1.3 Claims against the Hydroelectric not acknowledged as debt aggregate to Rs. 644 million (2011:Rs. 751
million).
17.2 Commitments
17.2.1 Capital commitments contracted for but not incurred as at 30 June 2012 amounted to Rs. 37,174 million
(2011: Rs. 32,144 million).
17.2.2 Commitments under letter of credit amounts to Rs.1,437 million. (2011: Rs.3,162 million).
17.2.3 Commitments under Stand by letter of credit (SBLC) in favour of supplier for construction of Jinnah Hydro
Project amounting to Rs. US$ 119 million (2011: US$ 137 million). ive..
WAPDA POWER WING
18
PROPERTY, PLANT AND EQUIPMENT
Note
Operating fixed assets
18.1
Provision against expenditure incurred on feasibility
studies of defunct on:yetis
18.4
2012
2011
Rupees in thousand
186.993, 717
126,574,963
64.860,553
60,152,022
251,854,270
188,726,985
18.5
18.1
5,125,103
46,341
Buildmgs and awl works
Genera
Power Generation plant assets
37,877,413
1,968450
39,409,168
151,783,419
Dams and reservoir
3,059,043
5,171,444
39,845,M
5,285,947
751,114
194,250,880
18,206,867
83,565,819
12,451,167
561,380
93,524,551 5.443,766
- 1,60%706
32996
(750)
78,27%872
General / plant assets
5,171,444
8,873,826
647.032
44,580
25,540
5,536
1,452
599,911
561,554
31,076
1,488
13,504
10%/25%
563,042
36,869
10%
1,382,808
188,513
20%
3,458,000
146,881,299
4,542000
186,993717
706
598,459
Assets subject to great'
2012
30,103
1,571,321
1,337,757
45,051
8,00%000
171.519,0U
151,783,419
8,060,000
10,573,293
333,875,0113
(750)
2,926000
44,944,091
- 532,000
93,524,551 8,412,657
2011
152.02%619
19,489435
171,519,054
40,695,533
18.1.1
4,253.599
The Hydroelectnc has opted Islamic Finanaal
7
7075,696
1 99%-4 987%
69,513,946
2%
230,822
10%
825,198
Furniture and fixture
•
14,051,873
594,376
2%
3,791
40,789
1,541218
117,17%184
30220,923
-
178,186
Office equipment
Transportation equipment
9,624,940
(5,041)
44,944,091
Accounting
Standard -IFAS -2 "IJARAH' which
transfeiredas
toleasehold
WAPDA Second
effecbye from 01 July 2007
presented
assets Sukuk Company Limited, whereas certificates of Sukuk-I wereisissued
before the
126,574,9M
and
accordingly assets under Oran financing in respect of Sukuk-II (Talbert) has been
effective dale of IFAS-2 therefore, it has been accounted
for
as per requirements of IAS-17 r e.
1111
:
WAPDA POWER WING
18.1.2 Operating fixed assets by Power Station
2012
Cost
Power Station
As at
30 June
2011
Revaluation
surplus
Depreciation
Additions/
(Deletions)
As at
30 June
2012
As at
30 June
2011
Revaluation
Adjustment
For
the
year
Deletions/
'Adjustments
As at
30 June
2012
Book
values
as at
30 June
2012
upeas in thousand
Tarbela
22,752,912
112.635,572
Ghazt Brotha
95,223,091
34,521,481
Mangla
Warsak
Op
Chashma
Rasul
Dargal
Nandipur
Shadiwal
Chichoki
Kuram Garhi
Renala Khurd
Chitral
30,167,538
135,405,303
14,850,874
80,000,084
97,614
129,842,186
17,823,395
11,601,156
23,376
20,381,353
(1,084,262)
5,146,724
37,005,582
2.984,308
32,408,859
97,433,327
949,063
5,621,365
24,569,324
19,040
659,311
448,825
8,656,630
16,925,334
57,580
164,647
4,672,302
13,636
1,108,136
1,098.453
54,244
25,581,964
6,153,180
1,848,160
1,528
655,290
1,420
6,454
8,373
303,901
40,131
(458,182)
598
222,227
49,706
-
344,032
44,546
250,982
50,995
17,018
1,678
69,691
33,141
61,072
2,558
99,307
29,307
2,696
192,048
12,166
60,980
6,614
18,915
12,185
24,249
25,916
247,481
10,103,151
61,281
184,067
146,881,299
186,993,717
80,009
264,191
66,607
22,712
13,513
102,832
68,743
81
128,614
35,677
525
204,214
28,902
160,450
67,594
9,825
48,776
(168)
59,790
34,567
169,122
16,250
51,344
15,134
13,691
2,275
(27,427)
10,350,612
245,348
11
98,399,721
30,190,689
(357)
220,101
Khan Khwar
2012
3,548,763
(225)
2,178,762
77,592
Others
16,819
171,519,054
151,783,419
10,573,293
31,100
5,506
50,165
42,543
13,007
(19,392)
10,350,612
2,379
402
1,098
247,461
245,348
78,187
333,875,016
44,944,091
750)
111111111111111P1
(16,906)
93,524,551
8,412.657
•
18.2 Power generation plant assets of NEPRA regulated business were revalued during the year ended 30 June 2012 by an independent valuer M/s
lqbal A. Nanjee & Company (Pvt.) Limited resulting in a surplus of Rs. 58,259 million over the written down value of Rs. 20,950 million on the
basis of replacement cost of these power generation plant assets. The carrying values of power generation plant assets are being depreciated
over the remaining useful lives (Note 6.4.1) of the assets from the date of revaluation. Had the power generation plant assets not been revalued,
the carrying amount of these assets would have been as mentioned in Note 18.3.3.
2012
2011
Rupees in thousand
Note
18.3 Carrying value of revaluation surplus on power generation plant assets has been
arrived as follows:
Replacement cost / Revalued Written down value
Net operating / written down value at purchase price
Revaluation surplus
18.3.1 Difference in yearly depreciation charge of revalued assets
Depreciation on the basis of revaluation price of assets
Depreciation on the basis of histoncal cost of assets
Difference in depreciation charge for revalued assets
18.3.2
18.3.3
73,881,069
19,598,670
54,282,399
18.3.2
18.3.3
5,328,163
1,351,694
3,976,469
18.3.2 Power generation plant assets at revalued price
Power
Stations
Revalued
cost as at
1 July 2011
124,818,758
Tarbela
50,487,374
Ghazi Brotha
Mangla
479;146
Warsak
14,333,843
Chashma
28,980
Rasul
275,360
Dargai
37,894
Nandipur
83,281
Shadiwal
177,210
Chichoki
55,072
Kuram Garhi
15,145
Renala Khurd
2,350
Chitral
Total
Revalued
Revalued
Depreciation
accumulated
accumulated Additions /
charge for the
depreciation as
depreciation as (Disposals)
year
at 30 June 2012
at 1 July 2011
Rupees in thousani
91,944,396
3,287,698
(382,522)
89,039,220
124,818,758
1,553,672
18,520,265
16,966,593
50,487,374
Revalued
Additions /
cost as at 30
(Disposals)
June 2012
190,794,413
479,146
14,333,843
28,980
275,360
37,894
83,281
177,210
55,072
15,145
2,350
202,475
5,143,695
15,255
261,592
28,394
74,219
168,123
52,318
14,388
1,662
190,794,413
111,967,934
(231)
(382,753)
14,729
454,518
2,718
7,158
698
1,915
2,046
2,203
106
702
217,204
5,598,213
17,973
268,750
29,092
75,903
170,169
54,521
14,494
2,364
5,328,163
116,913,344
Book value
as at
30 June 2012
32,874,362
31,967,109
261,942
8,735,630
11,007
6,610
8,802
7,378
7,041
551
651
(14)
73,881,069
18.3.3 Power generation plant assets at purchase price
Cost as at
1 July 2011
Depreciation
Accumulated
Accumulated
Additions /
Additions / Cost as at 30
charge for the depreciation as
depreciation as
(Disposals)
(Disposals) June 2012
at 30 June 2012
year
at 1 July 2011
Book value
as at
30 June 2012
Rupees in thousand
Tarbela
12,183,186
12,183,186
8,656,614
284,222
8,940,836
3,242,350
Ghazi Brotha
15,965,893
15,965,893
5,365,437
661,866
6,027,303
9,938,590
Warsak
1,563,409
1,563,409
660,657
38,293
698,950
864,459
Chashma
9,187,118
9,187,118
3,295,535
366,341
3,661,876
5,525,242
27,452
27,452
13,835
612
14,447
13,005
11,169
10,610
Mangle
Rasul
Dargai
11,169
10,610
559
11,486
3,696
Nandipur
15,182
15,182
11,376
110
Shadiwal
14,538
14,538
12,916
34
12,950
1.588
Chichoki
8,088
8,088
7,673
2
7,675
413
Kuram Garhi
3,728
3,728
3,542
3,542
186
Renala Khurd
1,454
1,454
1,381
1,381
73
29,777
29,777
21,054
214
21,268
8,509
39,010,994
39,010,994
18,060,630
1,351,694
19,412,324
19,598,670
Chitral
Total
18.4
2012
Note
2011
Rupees in thousand
Gomel Zam
3,229,053
Khan Khawar Project
Allai Khawar Project
Dubair Khawar Project
Jinnah Hydro Power Project
Bhasha Dam Project
Golan Gol Hydro Power Project
Jabban Hydro Power Project
Kheyal Khwar Hydro Power Project
Other projects under construction
18.4.1
11,415,624
14,657,604
14,434,621
13,174,523
1,581,507
898,335
383,275
5,086,011
3,229,053
8,562,977
9,358,967
12,662,196
13,671,292
6,432,367
1,117,022
528,720
89,488
4,499,940
64,860,553
60,152,022
60,152,022
15,059,143
(10,350,612)
64,860,553
53,568,047
14,590,570
(8,006,595)
60,152,022
Capital work in progress - Movement during the year
Opening balance
Additions during the year
Transferred to operating fixed assets
Closing balance
(18.4.1.1)
18.4.1.1
This includes finance cost amounting to Rs 2,195.961 million (2011: Rs. 1,710.972 million) capitalized
during the year.
18.5
• 19
studies of defunct projects:
Opening balance
Written off
Closing balance
226,701
(226,701)
LONG TERM ADVANCES AND RECEIVABLES
Long term advances to employees - considered good
(19.1)
324,425
254,412
19.1
Long term loans for purchase of plot, house, car, motorcycle etc. are given to regular employees of the
Hydroelectric. The said loans are provided at discounted mark up rates and are recovered in 120
installments in respect of purchase of plot and house and in 60 installments for purchase of car, motorcycle
etc. These advances are unsecured and considered good by the management of the Hydroelectric.
20
2012
STORES AND SPARES
Note
Stores & spares
Stores in transit
21
2,489,092 .
137,859
2,626,951
1,873,954
553,282
2,427,236
TRADE DEBTS - unsecured
Receivable from NTDC (CPPA)
21.1
2011
Rupees in thousand
(21.1)
These are unsecured and are considered good by the management.ILA .
MN 11111111111111
83,038,497
63,795,084
/
2012
21.2
Note
Aging of trade debts
Rupees in thousand
3,110,815
2,684,800
0 - 365 days
30,322,534
26,243,195
1 - 2 years
48,867,833
34,867,089
737,315
83,038,497
63,795,084
3,373,077
1,672,663
53,814
Not yet due
Past due:
,
More than two years
22
ADVANCES AND OTHER RECEIVABLES - Considered good
Advance to suppliers, contractors & consultants
Receivable against custom clearance consignment
(22.1)
350,322
Bridge Financing (Neelum-Jhelum)
(22.2)
3,650,000
General sales tax receivable
666,387
Miscellaneous receivables
269,723
8,309,509
22.1
2011
1,011,055
105,989
2,843,521
Receivable against custom clearance consignment
This is the advance payment made to CRRK for custom clearence and retiring of cost of documents for
maintenance material imports.
22.2
This represents bridge financing loan given to Neelum Jhelum Hydro Power Company and carries mark up
@ 12.64%.
23
SHORT TERM INVESTMENTS - Held to maturity
Note
2011
2012
Rupees in thousand
Held to maturity - Unquoted
23.1
Innovative Investment Bank Limited
(23.1)
261,000
261,000
Redemption Sinking Fund
(23.2)
6,874,259
1,207,493
7,135,259
1,468,493
This represents investment made in Innovative Investment Bank (Formerly Crescent Standard Investment
Bank). On maturity the balance remained unpaid, hence the case was lodged with the Judicial Department
of Lahore High Court for the recovery of the said amount. The Honorable High Court decided the case in
favour of the Hydroelectric and attached the property with forced sale value of Rs.220 million and appointed
Court Auctioneers for recovery of this amount. However, no impairment has been recognized as the
Hydroelectric expects full recovery.
23.2
This represents redemption fund created for the retirement of Sukuk-1, the princpal of which is due on 22
October 2012. The profit is to be accrued on daily product basis on the monthly deposit and amount of
accrued profit is reinvested on monthly compounding basis at the fixed rate of 12.25% per annum for 18
months. 11, A. -
11111111111111111
24
CASH AND BANK BALANCES
Cash in hand
Balance with the banks:
- current accounts
- deposit accounts ,,
24.1
25
6,167
26.2
26.3
SALES
Note
775,814 I
I
2,505,825
3,281,639
3,282,426
2012
2011
Rupees in thousand
1,868,607
6,292,603
37,992,441
39,861,048
27,177,250
33,469,853
COST OF ELECTRICITY
(26.1)
(26.2)
(26.3)
(26.4)
/6,235
2,159,899
4,540,680
301,060
✓(511,084
✓8,412,657
230,800 i..
34,8701,,
(5,623)
281,595
12,972 1, '
1,614,809
60,581 te •
Salaries, wages and benefits
Pay and allowances
Other benefits
Retirement benefits
Pension
Free Electricity
Free Medical
Depreciation
Owned assets
r
26.4
I
1,722,195
3,607,287
3,613,454
Deposit accounts carry interest at the rate ranging from 5% to 11.5% (2011: 5% to 11.5%) per annum.
Fuel charges
Salaries, wages and benefits
Retirement benefits
Dams inspection and monitoring cost
Repairs and maintenance
Depreciation
Power, gas and water
Insurance
Sundry expenses
Consultancy charges
Return on assets to provinces
ljarah rental -Sukuk-II
NEPRA fees
26.1
787
1,885,092 I
(24.1)
Variable charges
Fixed charges
26
2012
2011
Rupees in thousand
Note
4,176
1,695,451
4,051,799
469,292
691,999
4,253,599
223,425
34,723
3,470
1,536
19,304
1,501,848
19 172,865
52,960
13,003,582
1,910,171
1,466,553
249,728
2,159,899
228,898
1,695,451
3,377,989
328,699
2,978,187
295,782
833,992
4,540,680
777,830
4,051,799
7,880,657
3,721,599
/532,000
8,412,657
532,000
4,253,599
As per WAPDA Equipment Protection Scheme (WEPS), WAPDA equipments of power houses have been
given insurance coverage based on written down value of equipments. ill ..
111111111111101,111
Al-Xeuulf
27
OPERATING EXPENSES
Note
Rent, rates and taxes
Communication
Cz`..".ce expenses
Travelling expenses
Advertisement and periodicals
Legal and professional charges
Outside services employed
Vehical running expenses
Authority Overheads
Other expenses
28
2011
2012
------Rupees in thousand-.A7,275
346
4,150
4,586
112,452
9,380
J20,873
21,533
v(4,485
35,101
10,993
9,265
/30,419
8,574
,/76,748
147,299
j307,658
115,934
vf'292
282
596,345
352,300
192,161
132,388
451,366
34,009
643,527
166,397
639,647
360,720
20,392
61,139
82,334
193,917
✓ ,405
515
/686
128
(50,929
43,588
/5,594
1,274
v17,660
16,715
818,647
677,996
1,462,174
844,393
OTHER INCOME
28.1 Income from financial assets
Profit on bank balances
Interest income- Investments
28.2 Income from assets other than
financial assets
Amortization of grant
(11.1 & 11.2)
Miscellaneous income
Other liabilities written back
Income from non-utility operation
Interest income-advance to staff
Income from lease of other property
Sale of scrap
Sale of stores ileis -
1111111111111111111 I
29
HYDEL LEVIES
2012
Note
2011
Rupees in thousand
Net hydel profit
Water usage charges
IRSA Charges
29.1
6,000,000
6,000,000
29.2
699,877
895,317
29.3
140,566
6,840,443
29.1
29.2
29.3
30
At present, the Hydroelectric is making payment of Rs. 6,000 million per annum on account of Net Hydel
Profit (NHP) to the Government of Khyber Pakhtunkhwa, as an interim arrangement on the directions of
Government of Pakistan (GoP). This arrangement is expected to continue till such time, the GoP gives
revised directions after the determination of revenue rate (NHP margin) by the Council of Common Interest,
in respect of each Hydroelectric power station in operation. In past, the GoP has agreed to settle NHP
arrears assessed by the Arbitral Tribunal for the
period from FY 1991-92 to 2004-5. It is expected that
arbitrary arrears, if any, agreed/assessed by the GoP for the subsequent period would be settled by the
GoP itself with the provinces at its own in line with the previous practice.
Water usage charges @ Rs.0.15 per unit generated at Mangle Power House is bein
g paid to Azad Jammu
& Kashmir Government as per Memorandum of Understanding signed in 2003.
IRSA charges are levied by IRSA vide letter no. A2011 © Rs.0.005/kWh for hydro power generation. 11-6/10/2010-IRSA dated 25 August 2011 w.e.f. 01 July
2012
2011
Rupees in thousand
FINANCE COST - WAPDA Hydroelectric
Interest on relent foreign loans
Interest on cash development loans ( CDL)
ljara rental charges
Interest on long term debt
Foreign currency losses
Bank charges
30.1
2,765,214
31
3,433,085
898,595
909,993
1,073,600
1,092,520
235,600
118
2,480
1,295
1,200
5,674,878
4,738,822
30.1
6,895,317
This include exchange risk coverage fee amounting to Rs. 1,318 million (2011: 1,425 million).
RESERVE FOR DEVELOPMENT WORKS
Power sale tariff of the Hydroelectric is fixed to estimate reasonable return on investment made in the shape
of loans and GoP equity for financing of the Hydroelectric projects. The Article 161 (2) of the Constitution of
Pakistan allows to deduct return on investment and provision for reserve from the revenue of the Hydel
Power Stations. The above transfer have accordingly been made to prepare financial statements of the
Hydroelectric in line with provisions of the constitution.
32
32.1
FINANCIAL RISK MANAGEMENT
Financial risk factors
The Hydroelectric's financial liabilities comprise of interest bearing loans and borrowings, liability against
assets subject to ijarah, other payables, accrued interest, short term borrowings and short term liabilities.
The main purpose of these financial liabilities is to raise finances for the Hydroelectric's operations. The
Hydroelectric has trade debts, advances, deposits, other receivables and cash and short term deposits that
arrive directly from its operations. The Hydroelectric also holds long term investments, accounts / notes
receivables and long term advances and deposits.r- •
WAPDA POWER WING
The Hydroelectric's activities expose it to a variety of financial risks: market risk (including currency risk and
interest rate risk), credit risk and liquidity risk. The Hydroelectric's overall risk management programme
focuses on the liquidity crisis and seeks to minimize potential adverse effects on the financial performance.
Risk management is carried out by management of the Hydroelectric. The management provides principles
for overall risk manageinent, as well as policies covering specific areas such as currency risk, interest rate
risk, credit risk and liquidity risk.
32.1.1 Market risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and
equity prices will affect the Hydroelectric's income or the value of its holdings of financial instruments. The
objective of market risk management is to manage and control market risk exposures within acceptable
parameters, while optimizing the return on risk.
(a)
Foreign currency risk management
Pak Rupee (PKR) is the functional currency and presentational currency of the Hydroelectric and as a
result currency exposure arises from transactions and balances in currencies other than PKR. The
Hydroelectric's potential currency exposure comprises of:
Transactional exposure in respect of non functional currency monetary items.
Transactional exposure in respect of non functional currency expenditure and revenues.
The potential currency exposures are discussed below:
Transactional exposure in respect of non functional currency monetary items
Monetary items, including financial assets and liabilities, denominated in currencies other than the
functional currency of the Hydroelectric are periodically restated to PKR equivalent, and the
associated gain or loss is taken to the income statement account. The foreign currency risk related to
monetary items is managed as part of the risk management strategy.
Transactional exposure in respect of non functional currency expenditure
Certain operating and capital expenditure is incurred by the Hydroelectric in currencies other than the
functional currency. These currency risks are managed as a part of overall risk management strategy.
Exposure to foreign currency risk
The Hydroelectric's exposure to foreign currency risk was as follows based on notional amounts:
2011
2012
US $ in thousands
103,248
Long term loans
11111111111111111
117,004
The following significant exchange rates applied during the year:
Average rate
US
Reporting date mid spot rate
2012
2011
2012
2011
89.27
85.56
94.55
85.95
Sensitivity analysis
A ten percent strengthening of the Pak Rupee against the US $ at 30 June 2012 would have increased profit or
loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates,
remain constant. The analysis was performed on the same basis for 30 June 2011.
2012
2011
Rupees in thousand
(Increase) / Decrease in profit or loss before reserves
975,694
1,005,064
A 10 percent weakening of the Pak Rupee against the US $ at 30 June 2012 would have equal but opposite effect
on US $ to the amounts shown above, on the basis that all other variables remain constant.
(b)
Interest rate risk
The interest rate risk is the risk that the value of the financial instrument will fluctuate due to changes in the market
interest rates. SenSitivity to interest rate risk arises from mismatches of financial assets and liabilities that mature
in a given period.
The Hydroelectric has no significant long-term interest-bearing assets. The Hydroelectric's interest rate risk arises
from interest bearing loans and borrowings and short term borrowings. Borrowings obtained at variable rates
expose the Hydroelectric to cash flow interest rate risk.
At the statement of financial position date the interest rate profile of the Hydroelectric's interest bearing financial
instruments is:
2012
2011
3.84 % to 17.5 %
5 % to 17.5 %
Fixed rate instruments
2012
2011
Rupees in thousand
Financial liabilities:
59,904,424
50,184,274
Fair value sensitivity analysis for fixed rate instruments
The Hydroelectric does not account for any fixed rate financial assets and liabilities at fair value through profit or
loss. Therefore, a change in interest rate at the statement of financial position date would not affect profit or loss of
the Hydroelectric.
2012
2011
5 %to 11.5%
5 % to 11.5 %
Floating rate instruments
2012
2011
Rupees in thousand
Financial assets:
Bank balances Iv&
1,722,195
2,505,825
L.)
Fair value sensitivity analysis for floating rate instruments
The following table demonstrates the sensitivity to a reasonably possible change in floating interest rates, with all
other variables held constant, of the Hydroelectric's profit before tax (through the impact on floating rate
borrowings).
Increase /
(Decrease) in
basis points
%
2012
Effect on
profit
before tax
Rupees in
thousand
Financial assets:
1
Bank balances
2011
Financial assets:
Bank balances
1
21,538
21,538
32.1.1.1 The Hydroelectric-has transferred interest on these loans to Ministry of Finance (MoF). This interest is appearing in
these financial_statements as receivable from MoF. Accordingly, there would be no impact on income statement of
change in interest rate applicable on such borrowing. Previously this amount was receivable from National
Transmission and Dispatch Company (NTDC).
32.1.2 Sensitivity analysis of credit risk
Credit risk represents the risk that one party to a financial instrument will cause a financial loss for the other party
by failing to discharge an obligation. The carrying amount of financial assets represents the maximum credit
exposure. The maximum exposure to credit risk at the reporting date was as follows:
2011
2012
Rupees in thousand
324,425
1,837
Long term advances
83,038,497
8,309,509
7,135,259
3,607,287
102,416,814
Trade debts
Bank balances 11,A.
254,412
1,777
63,795,084
2,843,521
1,468,493
3,281,639
71,644,926
I
1
PP
011111,111111111111
WAPDA POWER WING
Credit risk related to trade debts is managed by established procedures and controls relating to
customer's credit risk management. Outstanding receivables are regularly monitored.
The maximum credit risk exposure at reporting date is carrying value of financial assets stated above.
The credit quality of financial assets that are neither past due nor impaired can be assessed by reference
to external credit ratings (if available) or to historical information about counterparty default rate. The table
below shows the bank balances held with some major counterparties at the statement of financial position
date:
Rating
Short Term
2012
Long term
Agency
A-1+
AAA
JCR - VIS
Al +
AA+
PACRA
II
2011
Rupees in thousand
49,444
388,308
2,261,456
1,582,001
A-1+
AA+
JCR - VIS
A-1+
89,582
AAA
52,429
JCR - VIS
358,651
AA+
176,324
PACRA
90,504
AA
93,130
JCR - VIS
312
AA+
311
JCR - VIS
560
534
Al+
A-1+
A-1+
Al +
AAA
PACRA
Al +
2,090
AA-
5,689
PACRA
212,326
AA
496,106
JCR - VIS
445
AA
423
PACRA
Al+
AA -
PACRA
Al +
1,027
AA+
9,123
PACRA
309,618
AA+
477,172
PACRA
93
89
3,607,287
3,281,639
Al+
Al+
Al +
231,179
At 30 June 2012 the Hydroelectric has only customer National Transmission and Despatch Company
Limited (NTDC) that owed Hydroelectric balance of Rs.82,720 million (2011: Rs. 63,794 million).
Due to Hydroelectric's long standing business relationships with NTDC and also it is related party of the
Hydroelectric and after giving due consideration to their strong financial standing, management does not
expect to the provision against receivables. Accordingly the credit risk is minimal.
32.1.3 Liquidity risk
Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations 'associated with
financial liabilities.
The Hydroelectric's approach to managing liquidity is to ensure, as far as possible, that it will always have
sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without
incurring unacceptable losses or risking damage to the entity's reputation.11.4.
The table below analyzes the Hydroelectric's financial liabilities into relevant maturity groupings based on the
remaining period at the statement of financial position to the contractual maturity date. The amounts disclosed in
the table are the contractual undiscounted cash flows.
2012
Carrying
Amount
Contractual
cash flows
30 June 2012
Between
1 and 5
years
Over 5
years
upees in thousand
Long term loans
59,904,424 117,547,298
Other payables
Accrued interest
ljarah rentals payable
Less than
1 year
11,374,714 42,476,409
8,000,000
8,330,933
10,581,842
10,581,842
358,469
358,469
358,469
1,846,578
1,846,578
48,731,899
1,846,578
48,731,899
8,000,000
63,696,175
8,330,933
10,581,842
48,731,899
7,562,731
1,501,848
6,011,507
137,423,212 194,959,750 82,726,283 48,487,916
2011
Carrying
Amount
Contractual
cash flows
50,184,274
103,515,259
12,162,461
8,000,000
8,376,800
8,376,800
3,942,907
3,942,907
3,942,907
392,702
392,702
4,704,578
4,704,578
392,702
4,704,578
39,392,685
39,392,685
39,392,685
8,000,000
114,617,146
9,068,694
1,505,963
70,478,096
30 June 2011
Between
1 and 5
years
Over 5
years
upees in thousand
Long term loans
Other payables
Accrued interest
ljarah rentals payable
Less than
1 year
169,393,625
40,147,639
51,205,159
6,011,507
46,159,146
1,551,224
52,756,383
The contractual cash flows relating to the above financial liabilities have been determined on the basis of markup
rates effective as at 30 June. The rates of mark up have been disclosed in respective notes to the financial
statements.
Fair values of financial assets and liabilities
The carrying values of all financial assets and liabilities reflected in financial statements approximate their fair
values. Fair value is determined on the basis of objective evidence at each reporting date.
Financial instruments by categories
2012
Cash and
cash
equivalent
Loans and
advances
Total
..
Assets as per statement of financial position
n ousan
6,874,259
Trade debts
Cash and bank balances11,-L
Held to
maturity
3,613,454
6,874,259
324,425
324,425
1,837
1,837
83,038,497
83,038,497
8,309,509
8,309,509
261,000
261,000
3,613,454
3,613,454 91,935,268 6,874,259 102,422,981
111111111111111111!
2012
1
Financial liabilities at
amortized cost
1
Liabilities as per statement of financial position
Rs. In '000'
Long term loans
.
Other payables
59,904,424
8,000,000
10,581,842
Accrued interest
358,469
1,846,578
48,731,899
129,423,212
2011
Cash and 11
Loans and
Held to
cash
equivalent advances maturity
Assets as per statement of financial position
Total
Rupees in thousand
1,207,493
Trade debts
Advances and other 'receivables
1,207,493
254,412
254,412
1,777
63,795,084
1,777
63,795,084
2,843,521
2,843,521
261,000
3,282,426
261,000
3,282,426
70,438,220
Liabilities as per statement of financial position
1,207,493
71,645,713
2011
1
1
Financial liabilities at
amortized cost
Rs. in '000'
Long term loans
50,184,274
Other payables
8,000,000
3,942,907
Accrued interest
392,702
4,704,578
39,392,685
106,617,146
32.2 Fair values of financial assets and liabilities
The
carrying values of all financial assets and liabilities reflected in financial statements approximate their fair
values. Fair value is determined on the basis of objective evidence at each reporting date.
Fair value hierarchy
The Hydroelectric uses the following hierarchy for determining and disclosing the fair value of fin'ancial instruments
by valuation technique:
Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities
Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are
observable either, directly or indirectly
Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on
observable market data
As at 30 June 2012, the Hydroelectric did not hold any financial instruments carried at fair value.1),A.
Nil 11
33
NUMBER OF EMPLOYEES
The Hydroelectric as at 30 June 2012 has 7,173 active employees all of whom are entitled to post employment
benefits and 7,364 pensioners to whom post employment benfits payments are disbursed (2011: 6,223 active
employees and 7,055 pensioners entitled to post employment benefits).
34
INSTALLED CAPACITY AND NET ELECTRIC OUTPUT
2012
2011
Installed Capacity (MW)
6,516
6,516
28,206
31,571
Net Electric Output (GWh)
35
TRANSACTIONS WITH RELATED PARTIES
The related parties comprise associated undertakings, subsidiaries, undertakings with common control,
Government of Pakistan (GoP) and key management personnel.
2012
Transactions between the Hydroelectric and related parties are as follows:
2011
Rupees in thousand
Statement of financial position items:
Long term loans - Additions
- Repayments
15,611,142
2,955,244
4,994,846
4,718,711
10,597,613
Reserve for GoP investment in development works
3,229,053
2,718,805
769,817
674,025
1,846,578
4,704,578
2,342,744
2,756,438
39,861,048
33,469,853
164,457
115,934
34,870
34,723
Capital Work in Progress
Other payables
Income statement items:
Sales
1% Authority overhead
Insurance premium
234,955
Interest transferred from Water Wing
ljarah (finance cost)
1,073,600
1,092,520
Ijara rentals
1,614,809
1,501,848
Hydel levies
6,000,000
6,000,000
Water usage charges
699,877
895,317
IRSA Charges To..
140,566
WAPDA POWER WING
36
PROVISION FOR TAXATION
Income of the Hydroelectric is exempt from income tax as per provisions of Clause 66 (xvi) Part-I of Second
Schedule to the Income Tax Ordinance, 2001. Interest income under section (u/s) 151, property income u/s 155,
and cash withdrawals from bank u/s 231A of the Income Tax Ordinance, 2001 is also exempt and in this
connection exemption certificates are issued by Commissioner Income Tax on yearly basis.
37
DATE OF AUTHORIZATION OF ISSUE
These financial statements were authorized for issue on
23rd Nov. 2012
i
l 38 GENERAL
38.1
Figures have been rounded off to the nearest thousand, unless otherwise stated.
38.2
Corresponding figures have been rearranged/reclassified, wherever necessary, for better and fair presentation.
However, no significant rearrangement/reclassification has been made in the financial statements.".1
c;(4.4
G. 51141■
IGE (POWER)
MEMBER (POWER)
S
111111 Illigilii II II
PIMP NFIN,111 PT I E
V
111
IIA1 I A1t!
(OTHER BUSINESS)
BALANCE SHEET AS AT 30 JUNE 2012
Rupees in thousand
AU IL
EQUITY AND LIABILITIES
GM (Training)
CRRK
Corporate
investment
GM (Training)
CRRK
Corporate
Investment
Share capital and reserves
-
Share capital
l'
Capital reserves
Unappropriate profit/(loss)
-
86,062
53,445
(128,759)
(258,805)
(42,697)
(205,360)
-
9,522,000
232,202,466
4,963,652
246,688,118
(124,166)
234,371,627
(329,360)
(134,638)
2,792,802
(128,
8,465,553
7,747,716
Interest bearing loans and borrowings
582,535
513,422
8,330,251
8,978,975
Current liabilities
Other payables
5,938,638
.
Accrued Interest
516,306
7,573,405
_
3,610
Current portion of Interest bearing loans
and borrowings
A
-
-
19,411,340
717,837
2,850,080
479,178
7,604,340
68,740
-
-
8,488,000
-
1,369
16,517,252
-
-
642,809
33,321,141
27,702,582
2,850,080
480,547
519,916
36,032,833
2,850,080
480,547
42,300,116
314,559
282,720,948
2,721,320
221,743
288,986,545
5,938,638
519,916
5,938,638
5,895,942
9,522,000
200,601
MEMBER (POWER
G.C?Fi'll-NGE (POWER)
MI11111111111
WAPDA POWER WING
(OTHER BUSINESS)
BALANCE SHEET AS AT 30 JUNE 2012
Rupees in thousand
-- ..
CRRK
-•
GM (Training)
ASSETS
Corporate
Investment
CRRK
1 GM (Training)
I Corporate
Investment
Non current assets
Long term investments
Investment in associates
Investment in subsidiaries
Notes receivables
tr
4,315
59,342
13,429
_
17,671
185
,627
198,577,253
3,774,328
163,105
2,111,707
_
_
5,592
184,874,551
3,572,563
1,386,048
8,042,686
701,405
5,038
6,263
75
64,108
6,596
18,900
185
184,391,474
4,055,640
1,386,048
8,754,831
9,326,132
207,914,125
84,143,695
1,226,303
119,177
81,072,420
60,826
,931
84,143,695
1,483,641
2,709,944
12,777
131,954
81,072,420
314,558
282,720,948
2,721,320
221,743
288,986,545
liCurrent assets
Cash and bank balances 111.
5,895,942
G. FAVA-NC-E (POWER)
MEMBER (POWER
(2
(OTHER BUSINESS)
INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2012
Rupees in thousand
2012
CRRK
2011
GM (Trainining)
Sales/ Services Income
143,506
280,933
Cost of electricity
441,197
201,023
Gross profit
102,309
79,910
Operating expenses
16,221
26,368
Operating profit
86,088
53,542
Other income
Corporate
Investment
316,885
(316,885) '
(316,885)
CRRK
GM (Trainining)
288,258
283,047
66,652
379,061
221,606
(96,014)
20,989
28,076
200,617
(124,090)
Corporate
Investment
3,133,708
Finance cost
t iet profit for the year 11A .
3,040,847
86,088
53,542
2,816,823
200,617
26
97
437,752
17
86,062
53,445
2,379,071
200,601
G. FINAGE (POWER)
(124,090)
76
(124,166)
MEMBER (POWER)
11111111111111111
3,040,847 0
869,997
2,170,850
4
(Jamod) aDueuLd .1D5Puen laouaD
t.-M bC r
9 •
! tI.
■
:, r, c f.!)
No .4 )/20 I 0--13 M:
Govern !win
P skin
'■
Vat T :111(1 Power
Islamabad
11,
15
August , 2011.
The Chairman, WA 1'D;\,
WAPDA I lousc„ !,aliore
St B:IF:CT: SUPC.RVISORY ()VERN l',,AM/A 1.
11101RTY OVER! !FA DS
C1 1 A RGES-WAPI)A.
I ant directed to refer to your letter No.
C/201 1/M F/90 dated 18.7.2011
on the subject cited above and to wove)/ the approval of Competent Authority for
revision of overhead structure as under;
Water!
Pulver
-Supervisory
Overheads.
1.4%
Supervisory Overheads
-Authority
Overheads
0.8% -
0.5 °A
Authority Overheads:-11ydropower Dcv . Projects 1%
-11ydropowcr Operational
5'%;, 6.0"/0
Forn► ations.
2.2%
6.5%
Accounts Officer (13&1.)
Tele: 9201024
AromaTO BE PUBLISHED IN THE NEXT ISSUE
OF THE GAZETTE OF PAKISTAN PART-11
-2? - 6/70APeo
GOVEMIvE
l NT OF PAKISTAN
MINISTRY OF WATER AND POWER
*******
Islamabad, the August, 2011.
NOTIFICATION
S.R.O
(1)/2011- In exercise of the powers conferred by section 21
of the Indus River System Authority .Act, 1992(XXII of 1992), the Federal Government,
while implementing the decision of Council of ComMon Interest (CCI) in case No.
CCI.6/3/2011, dated the 15t June, 2011, is pleased to make the following rules, namely:Short title. and commencement:- (1) These rules may be called the
Financial Autonomy of Indus River System Authority Rules,2011.
(2). They shall come into force at once.
2. Definitions:- (1) In these Rules, unless there is any thing repugnant in the subject
or context,. (a)
"Act" means the Indus River System Authority Act, 1992 (XXII
of 1992)
(b) • " Advisory Committee" means the Advisory Committee of the
Authority under section 9 of the Act;
(c)
"Authority" means the Indus River System, Authority established
under section 3 of the Act;
(d)
"Fund" means the Fund of the Authority under section 16 of the
Act;
•
(e)
"PAEC" means the Pakistan Atomic Energy Commission and
includes any other company, agency, department or authority
dealing with atomic energy- generatiormlilifiriCifie. of water;
(f)
"Power Projects" means all existing as well as upcoming
hydropower projects of WAPDA, PAEC. or any other agency,
department, organization, authority, private entity or project
seeking permission to utilize water for hydro power
generation;
(g)
"Provinc .3" means the Irrigation Departments of Punjab, Sindh,
Khyber Faidatunichwa, and Balochistan; and
(h)
"WAPDA" means Water and Power Development Authority and
includes any company, department, organization or authority
dealing with hydro power generation;
(2)
All other words and expressions used, but not defined herein, shall have
the same meanings as are assigned to them under the Act.
3. Levies by Authority:- (1) The Authority shall collect levies from WAPDA and
PAEC and Provinces in pursuance of the. decision of the Council of Common Interest
and with immediate effect as per the following rates, namely:.
(i)
thirty paisas per acre foot of water released for irrigation and hydro
power generation from Provinces and leAPDA; and
(ii)
half paisa per Kwh for managing water for hydro power generation
and cooling water needs of nuclear power generation to be paid by
WAPDA and PAEC.
. (2)
The levies so collected shall be deposited into the Fund and shall be
utilized to meet all expenses and charges of the Authority including the payment of
salaries and other remunerations of members, officers and staff of the Authority. The
Authority may also acquire and hold property, both moveable and immoveable, out of
the Fund for use by the Authority in the manner as it may deem fit. The Fund shall be
non-lapsable.
4 Enforcement of levies on Provinces;- (1) At the end of each cropping season,
that is to say, Kharif (is` April to 30th September) and Rabi (lst October to 31
st
March), based on the actual utilization of water at Canal Head, the Authority shall
submit a bill to the Secretaries of Provinces according to the rates specified in subrule (1) of rule 3.
(2)
The Provinces shall be bound to release the amount of bill within thirty
working days, to be deposited into the Fund.
(3)
The
st first levy on Provinces shall be applicable with effect from the
April, 2011.
5. Enforcement of levies on WAPDA and PAEC:- (1) At the end of each quarter
of a financial year,. The Authority shall submit a bill to WAPDA and PAEC, based
on the actual units generated, according to the rates specified in sub-rule (1) of rule 3.
(2)
The WAPDA and PAEC shall be bound to release the amount of bill
within thirty working days at the closing of each quarter, to be
deposited into the Fund.
(3)
The first levy on WAPDA and PAEC shall be applicable with effect t
from the 1st July, 2011.
(4)
Sub-rule (1), (2) and (3) shall be applicable on all hydro power
generating units of WAPDA, existing as well as upcoming projects
,and shall also be applicable on all units of PAEC requiting use of
water, existing (i,e. CHNSUPP Cl, C2, C3 and C4) as well as
upcoming projects in public or private sector and through publicprivate partnership.
(5)
The Authority may levy No Objection Certificate fee on all new
hydropower projects of Government, public or private sector and
through public-private partnership.
- 77 -
11
6. Arbitration:- Any dispute regarding levies under these rules shall be referred to
the Advisory Committee for arbitration thereon and any decision thereon taken by
the Advisory Committee shall be final.
. The Manager
Printing Corporation of Pakistan Press
Karachi.
"
.•
(NAUSHEEN MOHYUDDIN)
Section Officer (A-II)
Copy to:-,
1.'The Chief of Staff to the President's Secretariat (Public), Islamabad.
2. The Principal Secretary to the Prime Minister, Prime Minister's
Secretariat, Islamabad.
3. The Secretary, Cabinet Division, Islamabad.
4. The Secretary, Establishment Division, Islamabad.
The Chairman WAPDA, WAPDA House, Lahore.
6. The Chairman, PAEC, Islamabad.
7. The Chairman, Indus River System Authority, Islamabad.
8. The Chief Secretaries, Government of the Punjab, Lahore/ Sindh, Karachi/
' Khyber Pakhtunkhwa, Peshawar/Balochistan, Quetta.
9. The Secretaries, I&P Deptt: Government of the Punjab, Lahore/ Sindh,
Karachi/Khyber Pakhtunkhwa, Peshawar/ Balochistan, Quetta.
10.Section Officer (Adrrin-I), M/O Water and Power, Islamabad with the
request to send the enclosed original Notification to the Printing
Corporation of Paldstan Press, Karachi for publication in the Gazette of
Pakistan.
11.P.S to Secretary/Additional Secretary (Water and Power).
(NAUSHIE MOHYUDDIN)
Section Officer (A-II)
WAPDA Hydroelectric
A- Ni wax - VII
C/1)
Loan Wise Debt Service Liability
FY 2013-14 (Budgeted)
A - Cash Develonment Loans
Loan Name
ProjeceName '
Mln Rs.
Tenor
Taken - Retire
-•
Balance as
.
' Balance as
-•
Addition •Repayment
, Interest ,
on
. Rate ' 011064013
' 30::= 201344• =' 2013-14
,
06401
,
Interest
,
2013-14
,
'
Hydel Development Loans
2007-08 (Power)
2009-10 (Power)
2007-08 (Power)
2009-10 (Power)
2011-12 (Power)
2012-13 (Power)
2012-13 (Power)
2009-10 (Power)
2012-13 (Power)
2007-08 (Power)
2009-10 (Power)
2006-07 (Power)
2008-09 (Power)
2009-10 (Power)
2012-13 (Power)
Hydel Development Total
BASHO
BASHO
DIAMIR BHASHA DAM
DIAMIR BHASHA DAM
DIAMIR BHASHA DAM
DIAMIR BHASHA DAM
DIAMIR BHASHA DAM
HARPO
HARPO
JABBAN
JABBAN
KOHALA
KOHALA
KOHALA
DASU
2007-08 to 2032-33
2009-10 to 2034-35
2007-08 to 2032-33
2009-10 to 2034-35
2011-12 to 2031-32
2012-13 to 2032-33
2013-14 to 2033-34
2009-10 to 2034-35
2013-14 to 2033-34
2007-08 to 2032-33
2009-10 to 2034-35
2005-06 to 2030-31
2008-09 to 2033-34
2009-10 to 2034-35
2013-14 to 2033-34
10.14%
12.59%
10.14%
12.59%
12.64%
12.64%
12.64%
12.59%
12.64%
10.14%
12.59%
11.78%
13.80%
12.59%
12.64%
17
26
303
1,000
5,380
9,285
39
31
98
157
88
130
16,553
-
0
2
3
31
126
680
1,174
2,620
5
91
3
12
19
12
16
879
5,673
41,460
720
13,915 .
56,095
-
9
16
26
297
1,000
5,380
9,285
41,460
39
720
31
98
155
88
130
13,915
72,639
142
39
17
198
6,189
851
461
7,500
620
156
84
859
5
1
3
-
Hydel Operation Loans
2005-06 (Power)
-98
-b78-99
H del 0 eration Total
2005-06 to 2030-31
1997-98 to 2022-23
1998-99 to 2023-24
9.79%
17.50%
17.50%
6,331
889
478
7,698
-
GOLEN GOL
2010-11 to 2025-26
KEYAL KHWAR 2010-11 to 2025-26
TERBELA-4' Ext 2011-12 to 2025-26
17.00%
17.00%
15.00%
1,731
357
4,508
6,596
1,770
1,702
18,030
21,502
-
3,501
2,059
22,538
28,098
445
205
2,028
2,679
CHASHMA
1997-98 to 2016-17
1997-98 to 2016-17
CHASHMA
CHASHMA
2005-06 to 2024-25
CHASHMA
1999-00 to 2018-19
CHASHMA
1999-00 to 2018-19
GH/BAROTHA
2001-02 to 2020-21
GH BAROTHA
2001-02 to 2015-16
GH BAROTHA
2001-02 to 2015-16
GH BAROTHA
2003-04 to 2022-23
GH BAROTHA
2005-06 to 2019-20
GNH*
1995-96 to 2014-15
GNH*
1996-97 to 2015-16
KHAN KHWAR 2008-09 to 2022-23
ALLAI KHWAR 2008-09 to 2022-23
DUBER KHWAR 2008-09 to 2022-23
ABBAN
2010-11 to 2028-29
14.00%
14.00%
11.00%
11.00%
11.00%
14.00%
17.00%
3.94%
14.00%
17.00%
11.00%
11.00%
17.00%
17.00%
17.00%
15.00%
361
435
1,271
181
166
3,767
365
3,398
2,973
3,986
2
12
1,979
3,418
4,470
2,249
29,032
131
583
701
1,415
Y.
90
109
106
30
28
471
122
1,133
297
569
1
4
198
342
447
150
4,096
270
326
1,165
151
138
3,296
243
2,265
2,676
3,417
1
8
1,781
3,208
4,606
2,800
26,351
47
57
137
19
17
511
57
123
406
653
0
1
320
563
771
379
4,062
GLi/BAROTHA
TERBELA
TERBELA
B - Forei n Relent Loans
Saudi,Kuwait & OPEC Fund
KFW - Loan
World Bank 1BRD,IDA
H del 0 1 eration Loans
ADB-1143
ADB-1144
CITIBANK LOAN
FRENCH BANK CREDIT
FRENCH STATE CREDIT
ADB-1424-PAK
EUROPIAN INVESTMENT BANK
IBRD-3965-PAK
KFW-9566316
F—''-47
. JM BANK LOAN
IBRD 3107
IDB-0117 - KKP
IDB-0117 - AKP
IDB-0117 - DKP
AFD - Loan
H del 0 . eration Total
.sa.
...,..;
i;
- '''
• 'hZ
C - Forel n Direct Loans
D - WAPDA Bonds
110,339
13.53%
7
WAPDA Hydroelectric
Loan Wise Debt Service Liability
FY 2012-13 (Provisional)
rl — kalla/El //G. VI...lafr•••,..•a. •avaa••as
Project Name ,
Loan Name
Tenor
_
_
taken - Retire •
2007-08 (Power)
2009-10 (Power)
2007-08 (Power)
2009-10 (Power)
2009-10 (Power)
2007-08 (Power)
2009-10 (Power)
2006-07 (Power)
2008-09 (Power)
2009-10 (Power)
2011-12 (Power)
2011-12 (Power)
Balance as
,
, Interest
30
on
_
- Rate , , ,
2
3
31
126
5
3
12
19
12
16
680
587
1,496
-
DIAMIR BHASHA DAM
17
26
303
1,000
39
31
98
160
88
130
5,380
7,270
9,285
9,285
GH/BAROTHA
TERBELA
TERBELA
2005-06 to 2030-31
1997-98 to 2022-23
1998-99 to 2023-24
9.79%
17.50%
17.50%
6,460
922
492
7,875
-
129
33
15
177
6,331
889
478
7,698
632
161
86
880
JABBAN
ALLAI KHWAR
DUBER KHWAR
GOLEN GOL
KEYAL KHWAR
TERBELA-4th Ext.
2010-11 to 2024-25
2008-09 to 2025-26
2008-09 to 2025-26
2010-11 to 2025-26
2010-11 to 2025-26
2011-12 to 2025-26
15.00%
17.00%
17.00%
17.00%
17.00%
15.00%
699
2,575
3,608
453
114
7,450
1,550
843
862
1,278
243
4,508
9,284
-
2,249
3,418
4,470
1,731
357
4,508
16,734
221
509
687
186
40
338
1,981
CHASHMA
CHASHMA
CHASHMA
CHASHMA
CHASHMA
GH/BAROTHA
GH/BAROTHA
GH/BAROTHA
GH/BAROTHA
GH/BAROTHA
GNH*
GNH*
TERBELA
TERBELA
TERBELA
TERBELA
TERBELA
TERBELA
KHAN KHWAR
1997-98 to 2016-17
1997-98 to 2016-17
2005-06 to 2024-25
1999-00 to 2018-19
1999-00 to 2018-19
2001-02 to 2020-21
2001-02 to 2015-16
2001-02 to 2015-16
2003-04 to 2022-23
2005-06 to 2019-20
1995-96 to 2014-15
1996-97 to 2015-16
1993-94 to 2012-13
1993-94 to 2012-13
1993-94 to 2012-13
1993-94 to 2012-13
1993-94 to 2012-13
1993-94 to 2012-13
2008-09 to 2022-23
14.00%
14.00%
11.00%
11.00%
11.00%
14.00%
17.00%
3.84%
14.00%
17.00%
11.00%
11.00%
11.00%
11.00%
11.00%
11.00%
11.00%
11.00%
17.00%
451
543
1,377
212
194
4,237
486
4,531
3,271
4,555
3
16
4
16
22
94
17
13
2,177
22,218
-
90
109
106
30
28
471
122
1,133
297
569
1
4
4
16
22
94
17
13
198
3,324
361
435
1,271
181
166
3,767
365
3,398
2,973
3,986
2
12
0
(0)
1,979
18,895
60
72
149
22
21
577
78
163
448
750
0
2
0
1
2
8
1
1
353
2,708
MDR
KHWAR HPP
2004-05 to 2012-13
2007-08 to 2017-18
12.56%
11.23%
8,000
7,333
8,000
1,333
6,000
502
824
DIAMIR BHASHA DAM
DIAMIR BHASHA DAM
HARPO
JABBAN
JABBAN
KOHALA
KOHALA
KOHALA
DIAMIR BHASHA DAM
D - WAPDA Bonds
SUKUK - I
SUKUK - 11
2
17
26
303
1,000
39
31
98
157
88
130
5,380
9,285
16,553
-
10.14%
12.59%
10.14%
12.59%
12.59%
10.14%
12.59%
11.78%
13.80%
12.59%
12.64%
12.64%
ADB-1143
ADB-1144
CITIBANK LOAN
FRENCH BANK CREDIT
FRENCH STATE CREDIT
ADB-1424-PAK
EUROPIAN INVESTMENT BANK
IBRD-3965-PAK
KFW-9566316
PK-P-47
JAXIUM BANK LOAN
IBRD 3107
1RD SWISS MIXED CREDIT
880-PAK-2872
880-PAK-3230
ADB-701-PAK
ADB-702-PAK
CIDA LOAN-880-PAK
IDB-0117 - KKP
H del 0 , eration Total
;1,
,, Interest
-.,..,..
'Au12-13
2007-08 to 2032-33
2009-10 to 2034-35
2007-08 to 2032-33
2009-10 to 2034-35
2009-10 to 2034-35
2007-08 to 2032-33
2009-10 to 2034-35
2005-06 to 2030-31
2008-09 to 2033-34
2009-10 to 2034-35
2011-12 to 2031-32
2011-12 to 2031-32
BASHO
BASH 0
2005-06 (Power)
1997-98
1998-99
H del 0 , eration Total
,0
AFD - Loan
IDB-0117 - AKP
IDB-0117 - DKP
Saudi,Kuwait & OPEC Fund
KFW - Loan
World Bank (IBRD,IDA)
Kin Rs.
- Balance as
'
°
. ,Addition Repayment
3, sti.
on
2012-13 - 2012-13
9
2
-
WAPDA HYDROELECTRIC
Generation Plan
Based on Five years Actual Generation
Sr.No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Hydel Power
Station
Tarbela
Ghazi Brotha
Mangla
Warsak
Chashma
Jinnah HPP
Khan Khawar
Allai Khawar
Duber Khawar
Gomal Zam
Jabban
Rasul
Dargai
Nandipur
Shadiwal
Chichoki
Kuram Garhi
Renala Khurd
Chitral
Total
Installed
Capacity
MW
3,478
1,450
1,000
243
184
96
72
121
130
17
22
22
20
14
14
13
4
1
1
,902
f ti
Actual Net Electrical Output (GWh)
20-os-o(Actual)
13,946
6,411
4,636
986
1,088
71
107
35
36
25
13
3
5
200 -M0-` 2010-1-1
(Actual)
(Actual)
13,833
15,909
6,716
7,354
4,639
5,969
1,054
1,036
1,050
1,001
114
86
96
110
83
38
43
38
32
28
32
14
10
3
3
5
3
27,363 , 7,614 ,
- 2k
31,685
2011-12
(Actual)
14,057
6,979
4,666
991
1,067
29
176
65
84
41
32
32
10
3
4
_ V1
Projected Budgeted
2012-13
14,861
7,446
4,817
1,040
1,071
153
212
100
100
14
15
61
98
43
34
33
14
3
4
2013-14
14,981
7,568
4,945
1,021
1,055
344
269
463
595
91
122
76
96
40
34
30
12
3
4
28;235 -.4.30,119 -, 31;75
Annex -
IX
Capital Work in Progress FY 2011-12 (Actual)
Opening
Addition/
Balance 01(Deletion)
07-2011
Golen Gol Hydro Power Project
Khan Khawar HPP
Allai Khawar HPP
Duber Khawar HPP
Jinnah HPP
Dasu HPP
Rehabilitation of Jabban HPP
Diamer Basha Dam Project
Keyal Khawar HPP
Gomal Zam Dam Project
Others at feasibility stage
Total
1,117
8,563
9,359
12,662
13,671
561
529
6,524
89
3,229
3,847
464
1,787
2,057
1,995
763
39
370
6,742
294
60,152
15,059
Transfer to
Fixed
Assets
Min Rs
Balance
as on
30-06-2012
1,581
(10,350)
11,416
14,657
14,435
600
899
13,267
383
3,229
4,394
547
(10,350)
64,861
Capital Work in Progress FY 2012-13 (Projected)
Opening
Addition/
07-2012
Allai Khawar HPP
Duber Khawar HPP
Jinnah HPP
Dasu HPP
Rehabilitation of Jabban HPP
Keyal Khawar HPP
Gomal Zam Dam Project
Tarbela 4th Extension
Total
1,581
11,416
14,657
14,435
600
899
13,267
383
3,229
4,394
5,000
4,098
4,884
1,077
63
1,951
10,307
673
5,144
578
64,861
33,775
Transfer to
Fixed
Assets
(15,514)
(19,542)
(15,512)
Mln Rs
Balance
as on
30-06-2013
6,581
0
(0)
(0)
663
(2,849)
(3,229)
(56,645)
0
23,574
1,056
0
5,144
4,972
41,990
Capital Work in Progress FY 2013-14 (Projected)
Min Rs
Opening
Addition/
07-2013
Dasu HPP
Keyal Khawar HPP
Tarbela 4th Extension
Total
Transfer to
Fixed
Assets
Balance
as on
30-06-2014
6,581
663
23,574
1,056
5,144
4,972
5,710
15,660
49,610
3,561
19,795
1,648
12,291
16,323
73,184
4,617
24,939
6,620
41,990
95,984
137,974
C
22-
Operating Fixed Assets 2012-13 (Act/Projected)
(Mln Rs
Accumulated Depreciation
Cost
Particulars
As at July 01
2012
Revaluation
Surplus
Additions/
(Deletions)/
Adjustments
As at
30 June
2013
As at July 01 Revaluation
2012
Adjustment
For
the
year
Deletions/
adjustments
As at
30 June
2013
Book
values
as at
30 June
2013
Owned:
Land
Buildings and civil works
Dams and Reservoir
Office equipment
Furniture and Fixture
5,171
393
5,565
39,846
43,295
83,141
9,625
194,251
22,277
216,528
117,175
5,823
126,456
90,073
83,566
1,429
84,995
14,052
1,616
15,668
69,327
825
357
1,182
594
45
639
542
45
2
46
31
6
37
600
2
601
563
2
565
10
37
33
1,604
1,383
50
1,433
172
59,788
393,663
3,458
146,881
8,505
155,386
238,277
10,573
333,875
44,944
8,413
146,881
186,994
1,572
8,000
2013
333,875
2012
171,519
(8,000)
151,783
Reconciliation of Addition in Assets
From Capital Work in Progress
From Capital Expenditure Budget
Total addition without IDC
5,565
965
10,589
3,458
72,552
(3,458)
93,525
56,645
3,143
59,788
Operating Fixed Assets 2013-14 (Projected)
Min Rs
Accumulated Depreciation
Cost
Particulars
Owned:
Land
Dams and Reservoir
Office equipment
Furniture and Fixture
As at July 01
2013
Revaluation
Surplus
Additional
(Deletions)/
Adjustments
As at
30 June
2014
As at July 01 Revaluation
Adjustment
2013
For
the
year
Deletions/
adjustments
As at
30 June
2014
Book
values
as at
30 June
2014
216,528
84,995
1,182
46
601
1,604
34
883
7,917
26
398
1
1
27
5,599
84,024
224,445
85,021
1,580
47
602
1,631
10,589
126,456
15,668
639
37
565
1,433
1,710
6,330
1,641
60
6
2
89
12,299
132,786
17,309
699
43
566
1,521
5,599
71,725
91,659
67,712
881
4
36
110
2014
393,663
9,287
402,950
155,386
9,837
165,223
237,727
2013
333,875
59,788
393,663
146,881
8,505
155,386
238,277
5,565
83,141
Reconciliation of Addition in Assets
From Capital Work in Progress
From Capital Expenditure Budget
Total addition without IDC
9,287
9,287
A-1\V`kG-X
Manpower Strength Of WAPDA Hydroelectric
Sr #
,Name of Power station/Offices,
,
-
—,, ,
,Sanctioned Str6gth Grade IT& , 0,
Grade
, _
' .P13164 -
1
Dargai Power Station
163
7
170
2
Warsak Power Station
744
31
775
3
K/Ghari Power Station
87
1
88
4
Chitral Power Station
62
1
63
5
Tarbela Power Station
1086
98
1184
6
Tarbela Dam Project
1323
94
1417
7
Mangla Power Station
518
43
561
8
Mangla Civil
909
49
958
9
Ghazi Barotha Power Station
459
71
530
10
Ghazi Barotha Civil
926
53
979
11
Chashma Power Station
373
33
406
12
C.J. Link Chashma
439
16
455
13
Shadiwal Power Station
100
6
106
14
Rasul Power Station
122
6
128
15
Nandipur Power Station
119
7
126
16
Chichoki Power Station
107
6
113
17
Renala Power Station
32
1
33
18
Khan Khawar Power Station
71
11
82
19
C.E Besham
66
8
74
20
Allai Khwar
60
6
66
21
Dubair Khar
38
7
45
22
C.E Jabban
60
6
66
23
Jinnah Power Station
197
21
218
24
Gomal Zam
170
38
208
620
8651
Total Hydel Formations
•
1
8231
'
Alm NI c;_,x x
POWER WING WAPDA (HYDRO ELECTRIC)
BUDGET ALLOCATION 2012-13 (APPROVED) AND (REVISED) BUDGET ESTIMATES 2012-13.
E & LOCATION
OF PROJECT
DATE OF
STATUS
COMMENCEMENT TOTAL
APPROVED /
COMPLETION FOREIGN
UNAPPROVED
LOCAL
DATE OF APPROVAL
PC-1 / PCII
COST
UPTO
JUNE
2012
BUDGET
ALLOCATION
2012-13
APPROVED
BY GOP
7
8
EXPENDITURE
ry
REVISED
BUDGET
ESTIMATES
2012-13
RECOMMENDED BY
RS IN MILLION
EXPENDITURE CUMULATIVE CUMULATIVE VARIATION
Jul-12
TO DEC.
2012
EXPENDITURE EXPENDITURE COL (94)
UPTO DEC. UPTO JUNE
2012
2013
(7+10)
(PROVISIONAL)
(7+9)
AUTHORITY
1
-1,-
2
3
4
5
6
9
10
WAPDA
GENERATION - ONGOING
..:,
IcHYDEL - SELF FINANCING
11
12
13
*MAR HYDRO
POWER PROJECT (121 MW)
APPROVED BY
ECNEC 2 9 2002
& 29.7.2011
TOTAL
JULY 2003
(0) JUNE 2006 FOREIGN
(R) JUNE 2012 LOCAL
EXP MAR.2013
13,834 948
6,522.261
7,312.687
11,415 624
2,304.692
9.110.932
2,173 000
644.000
1,529.000
4,098 000
843.000
3,255.000
695 580
471.087
224.493
12,111 204
2,775 779
9,335 425
15,513 624
3,147 692
12,365 932
1,925.000
199.000
1,726.000
2 DUSER KHWAR HYDRO
APPROVED BY
ECNEC 2.9 2002 &
20.8.2009
TOTAL
30 6 2003
(0) 29.6.2006 FOREIGN
LOCAL
(R) 4.7.2010
(Exp.)JUNE 2013
20,823.721
9,739.475
11,084.246
14,657.604
6,843.000
7,814.604
3,859 000
1,196.000
2,663.000
4,884 000
862.000
4,022 000
1,094.600
0.812
1,093.788
15,752.204
6,843.812
8,908.392
19,541.604
7,705 000
11,836 604
1,025.000
(334.000)
1,359.000
3 JINN4Ji HYDRO POWER
APPROVED BY
ECNEC 2.9.2002
TOTAL
FOREIGN
LOCAL
13,546.800
6,608 221
6,938 579
14,434.621
6,528.000
7.906.621
1,032.000
1,032.000
1,077.000
1,077 000
48.383
48.383
14,483 004
6,528 000
7,955.004
15,511.621
8,528.000
8,983.621
45 000
45.000
TOTAL
01 09 2007
(0)31.08.2010 FOREIGN
(R)2012
LOCAL
(Exp.)MAR. 2013
3,753.570
1,649 480
2,104 090
898.335
698.667
199 668
1,161.000
786.000
375.000
1,951.000
1,550.000
401.000
1,015.243
881.969
133 274
1,913.578
1,580.636
332.942
2,849 335
2,248 667
600 668
790.000
764.000
26.000
I
, 5..
PROJECT (96 MW)
4 REHABILITATION OF JABBAN
HYDRO POWER PROJECT
(22 MW)
APPROVED BY CDWP
30.4.2007 &
ECNEC 20 9.2007
REVISED APPROVED
BY ECNEC ON 9 12.10
18 2.2006
(0)17.2.2010
(R)31.3.2013
5 GOLAN GOL HYDRO POWER
PROJECT (106 MW)
APPROVED BY
ECNEC 2.9 2002
7/2007
(0) 6/2011
(R) 2/2015
TOTAL
FOREIGN
LOCAL
25,750.760
7,728 000
18,022.760
1,581.507
991.000
590 507
6,195 000
1,853.000
4,342.000
5,000.000
1,278.000
3,722.000
390.640
390 640
1,972.147
991,000
981 147
6,581.507
2,269 000
4,312 507
(1,195.000)
(575.000)
(620.000)
8 KEYAL KHWAR HYDRO
PC-I APPROVED BY
ECNEC ON 7.1.2004
1.7 2004
30.6.2015
TOTAL
FOREIGN
LOCAL
7,066.962
3,032.080
4,034.882
383.275
644.000
360.000
284.000
673.000
243.000
430.000
112.105
29 714
82.391
495.380
29.714
465.666
1,056.275
243 000
813.275
29.000
(117.000)
146.000
7 TARBELA 4TH EXTENSION
PC-I APPROVED BY
zoiz
ECNEC ON 16.8.2012
2017
83,601.040
65,865.368
17,735.672
0.126
HYDRO POWER PROJECT
(1410 MW)
TOTAL
FOREIGN
LOCAL
7,187.000
5,270 000
1,917 000
5,144.000
4,508.000
636 000
10 570
10 570
10.696
10 696
5,144.128
4,508.000
636.126
(2,043.000)
(762.000)
(1,281.000)
8 CONSTRUCTION OF DIAMER
BASHA DAM PROJECT LOT
1 TO 5 (4500 MW)
APPROVED BY ECNEC
ON 20.8.2009
1.7.2009
2020-21
TOTAL
FOREIGN
LOCAL
834,205 000
312,943.000
521,262.000
4,649 776
4,649.776
6,030 000
6,030.000
4,022.000
4,022.000
324 048
324.048
4,973 824
4,973.824
8,671.776
8,671.776
(2,008.000)
(2,008 000)
9 DASU HYDRO POWER
PROJECT N/AREA (4320 MW)
PC-II APPROVED BY
ECNEC ON 27.9 2003
TOTAL
FOREIGN
LOCAL
796.778
100.000
696 778
63 000
63.000
63.000
63.000
18.780
18.780
PSOP 2012-13
11.7.2005
31.12.2013
383.275
0.126
599 772
599.772 _
618.552
618 552 .
662.772
662.772
- /
26.2.2013
Y6
2.4
SR
NO
NAME & LOCATION
OF PROJECT
DATE OF
STATUS
COMMENCEMENT TOTAL
APPROVED I
COMPLETION FOREIGN
UNAPPROVED
LOCAL
DATE OF APPROVAL
PC-I / PCII
COST
EXPENDITURE
BUDGET
ALLOCATION
UPTO
2012-13
JUNE
2012'APPROVED
BY GOP
5
TOTAL
FOREIGN
LOCAL
6
113.809
113.809
7
18.964
18 964
8
50.000
50.000
REVISED
BUDGET
ESTIMATES
2012-13
RECOMMENDED BY
AUTHORITY
9
10 000
2
1
10 HARPO HPP SKARDU
N/AREA (33 MW)
3
PC-II APPROVED BY
COW? 22.11.2008
4
22.11 2008
31 10 2014
PC-II APPROVED
BY CDWP 14.12.2005
REVISED BY CDWP
ON 3.11.2010
APPROVED BY
ECNEC ON 26.5.2011
14 12 2005
30.6 2013
TOTAL
FOREIGN
LOCAL
2,091.406
33.965
2,057 441
1,869 634
1,869 634
150.000
150.000
190.000
11 BUNJI HYDRO POWER
PROJECT (7100 MW)
PC-II APPROVED BY
CDWP ON 30.4.2007
30.4 2007
31.3.2013
TOTAL
FOREIGN
LOCAL
120.376
120.376
92.872
92.872
35 000
35 000
17.000
12 PHANDAR HYDRO POWER
PROJECT (80 MW)
13 LAWI HYDRO POWER
PROJECT CHITRAL N/AREA
( 69 MW)
PC-II APPROVED BY
CDWP ON
22.03.2004
31.7.2005
30.6.2014
TOTAL
FOREIGN
LOCAL
90.585
62.151
90.585
62 151
14 CHOR NALLAH HPP CHITRAL
N/AREA (621 MW)
PC-II APPROVED BY
CDWP ON 7.03.2005
21.7.2005
30.6.2013
TOTAL
FOREIGN
LOCAL
196.684
113.888
82.796
28 587
15 SPAT GAH HYDRO POWER
( 567 MW)
PC-II APPROVED BY
CDWP ON 7.03.2005
7.3 2005
30.6.2013
TOTAL
FOREIGN
LOCAL
177.771
94.976
82.795
34 570
16 BASHO HYDRO POWER
PROJECT (28 MW)
PC-II APPROVED BY
CDWP 27.11.2006
27.11.2006
30.6.2013
TOTAL
FOREIGN
LOCAL
17 KOHALA HYDRO POWER
PROJECT (1100 MW)
PC-II APPROVED BY
ECNEC 23.8.2006
1/2008
(0) 12/2008
(R)26.8.2009
18 PATTAN HYDRO POWER
PROJECT GILGIT BALTISTAN
(2600 MW)
PC-II APPROVED BY
CDWP 17.9.2009
17.09 2009
30.6.2015
19 REVIEW & EVALUATION OF
MASTER PLANNING OF HYDRO
POWER & WATER RESOURCES
OF WESTERN RIVERS
PC-II HAS BEEN
INITIATED
10 000
RS IN MILLION
EXPENDITURE CUMULATIVE CUMULATIVE VARIATION
EXPENDITURE EXPENDITURE COL (94)
Jul-12
TO DEC.
2012
10
1.256
1.256
UPTO DEC. UPTO JUNE
2013
2012
(PROVISIONAL)
(7+10)
(7+9)
12
•11
20.220
20.220
105 501
105.501
1,975 135
107 345
17.000
14 473
•
14.473
1.000
1 000
1.000
-
62 151
5 000
5.000
5.000
5.000
34 570
5 000
5.000
91.243
47 394
50.000
91.243
47 394
50.000
TOTAL
FOREIGN
LOCAL
545.732
209.199
336.533
662 861
5.000
662.661
5.000
TOTAL
FOREIGN
LOCAL
731.233
357.502
373.731
17.667
17 667
251.000
TOTAL
FOREIGN
LOCAL
422.000
-
150.000
28.587
422.000
251.000
150.000
190.000
1,975 135
107 345
28 964
28.964
2,059 634
2,059.634
109.872
109 872
13
(40.000)
(40.000)
40 000
40 000
(18.000)
(18.000)
62.151
63.151
63.151
-
0.497
0.497
29 084
29.084
33.587
33.587
-
5 000
5.000
0.995
0.995
35 565
35.565
39.570
39.570
-
10.000
10.000
1.298
48 692
57.394
(40.000)
1.298
48.692
57.394
(40.000)
5.000
5.000
-
662.661
662.661
667.681
210.000
210.000
-
17.667
17.667
227.667
20.000
20.000
-
-
1.000
667 661
227.667
20.000
20.000
-
(41.000)
(41.000)
(130.000)
(130.000)
/
2
PSOP 2012-13
26 2.2013
8/4
SR
NO
NAME & LOCATION
OF PROJECT
STATUS
DATE OF
APPROVED/
COMMENCEMENT TOTAL
UNAPPROVED
COMPLETION FOREIGN
DATE OF APPROVAL
LOCAL
1
2
20 DUDHNIAL HYDRO POWER
PROJECT LIUZAFFARABAD AJ&K
(960 MW)
3
UNDER APPROVAL
21 TRAPPI HYDRO POWER
UNDER APPROVAL
PROJECT MANSEHRA KPK
(32 MW)
22 THAKOT HYDRO POWER
PC-II APPROVED BY
CDWP ON 18.6.2012
PROJECT
(2800 MW)
4
May 2013
April 2015
B - NEELUM JHELUM HYDRO
5
TOTAL
FOREIGN
LOCAL
6
280 873
78 704
202.169
TOTAL
FOREIGN
LOCAL
158.032
113.022
45.010
TOTAL
FOREIGN
LOCAL
719.628
303 139
416.489
TOTAL
1,009,118.951
FOREIGN
415,492.280
LOCAL
593,626.671
TOTAL HYDEL (A)
23
PC4/PCII
COST
Anticipated Approval by
chairman ECNEC for
revised PC-I cost
BUDGET
UPTO
JUNE
2012
ALLOCATION
7
201 2-13
APPROVED
BY GOP
8
REVISED
BUDGET
(RS IN MILLION)
EXPENDITURE CUMULATIVE CUMULATIVE
VARIATION
Jul-12
EXPENDITURE EXPENDITURE
ESTIMATES
TO DEC.
2012-13
RECOMMENDED BY
AUTHORITY
9
2012
(7+9)
10
187.000
34.000
187.000
34 000
56.000
31.000
56.000
31.000
100.000
40.000
100 000
40 000
29,389.000
3,833.969
1,383.582
2,450.387
BASHA DAM PROJECT
LAND ACQUISITION (4500 MW)
(4500 MW)
TOTAL ADP ( C )
GRAND TOTAL
(A+B+C)
PSDP 2012.13
chairman ECNEC for
revised PC-I cost
APPROVED BY
ECNEC ON 20.8.2009
FOR Rs.60,052(M)
REVISED UNDER APPROVAL
12
34.000
13
(153 000)
34.000
(153.000)
31 000
(25.000)
31 000
(25.000)
40 000
(60.000)
40.000
(60.000)
55,289.109
18,748.941
36,540.168
78,945.140
26,649.359
52,295.781
(1,899.000)
(825.000)
(1,074.000)
10,109.000
19,280.000
274,882.590
158,367.180
116.515 410
45.604.501
9,766.523
35,837.978
26,808.000
5,000.000
21,808.000
33,622.000
5.974.000
27,648.000
12,417.968
3,864.000
8,553.968
58,022.469
13,630.523
44,391.946
79.228.501
15,740.523
63,485.978
6,814.000
974.000
5,840.000
TOTAL
1,284,001.541
FOREIGN
573,859.460
LOCAL
710,142.081
97,059.641
27,131.882
69,927.759
56,197.000
15,109.000
41,088.000
61,112.000
15,258.000
45,854.000
18,251.037
5,247.582
11,004.355
113,311.578
32,379.464
80,932.114
158,171.641
42,389.882
115,781.759
4,915.000
149.000
4,766.000
1,500.000
1,500.000
1.7.2005
TOTAL
(0)20.11.2012 FOREIGN
(R)2016
LOCAL
1.7.2009
2020-21
11
27,490.000
9,284.000
18,206.000
C - (FINANCING BY
FEDERAL GOVERNMENT
23 NEELUM JHELUM HYDRO
COL. (9-8)
UPTO DEC. UPTO JUNE
2012
2013
(7+10)
(PROVISIONAL)
51,455.140
17,365.359
34,089.781
1.7.2005
TOTAL
(0)20.11.2012 FOREIGN
(R)2016
LOCAL
TOTAL (A+B)
EXPENDITURE
TOTAL
FOREIGN
LOCAL
1,500.000
1,500.000
119,975.000
1,500 000
1,500.000
8,524.747
7,785.000
6,285.000
1,390.411
9,915.158
14,809.747
(1,500.000)
8,524.747
7,785.000
6,285.000
1,390.411
9,915.158
14,809.747
(1,500.000)
TOTAL
119,975.000
8,524.747
FOREIGN
LOCAL
119,975.000
8,524.747
TOTAL 1,403,976.541 105,584.388
FOREIGN
573,859.460
27,131.882
LOCAL
830,117.081 _ 78,452.506
7,785.000
7,785.000
1,390.411
.
7 785.000
1,390.411
68,897.000
17,642.348
15,258.000
5,247.582
53 639.000_ 12,394.786
9,915.158
16,309.747
119,975.000
3
S.7
7,785.000
63,982.000
15,109.000
48,873.000
9,915.158
16,309.747
123,226.736
32,379.464
90,847.272
174,481.388
42,389.882
132,091.506
4,915.000
149.000
4,766.00
26 2 2013
BUDGET ESTIMATES 2013-14 PROPOSED
NAME & LOCATION OF
PROJECT
STATUS APPROVED/
UNAPPROVED
DATE OF APPROVAL
DATE OF
COMMENCEMENT
COMPLETION
WAPDA GENERATION - ONGOING
A - HYDEL - SELF FINANCING APPROVED BY
ALLAI KHWAR HYDRO
DUBER KHWAR HYDRO
JINNAH HYDRO POWER
PROJECT (96 MW)
4 REHABILITATION OF JABBAN
HYDRO POWER PROJECT
(22 MW)
5 GOLAN GOL HYDRO POWER
OJECT (106 MW)
6 KEYAL KHWAR HYDRO
7 TARBELA 4TH EXTENSION
HYDRO POWER PROJECT
(1410 MW)
CONSTRUCTION OF DIAMER
SHA DAM PROJECT LOT
1 TO 5 (4500 MW)
9 DASU HYDRO POWER
ECNEC 2 9 2002
& 29 7.2011
APPROVED BY
ECNEC 2.9.2002 &
20.8 2009
APPROVED BY
ECNEC 2.9 2002
APPROVED BY CDWP
30.4.2007 &
ECNEC 20 9.2007
REVISED APPROVED
BY ECNEC ON 9.12.10
TOTAL
FOREIGN
LOCAL
3
JUL200
(0) JUNE 2006
(R) JUNE 2012
EXP MAR.2013
PC-I PC-I1
COST
TOTAL
FOREIGN
LOCAL
TOTAL
30.6 2003
FOREIGN
(0) 29 6 2006
LOCAL
(R) 4.7 2010
(Exp.)JUNE 2013
TOTAL
18 2 2006
FOREIGN
010
(0)17.2.2
LOCAL
(R)31 3.2013
TOTAL
01 09 2007
FOREIGN
(0)31 08.2010
LOCAL
(R)2012
(Exp.)MAR. 2013
APPROVED BY
ECNEC 2.9.2002
PC-I APPROVED BY
ECNEC ON 7 1.2004
PC-I APPROVED BY
ECNEC ON 16.8.2012
APPROVED BY ECNEC
ON 20 8.2009
PC-I UNDER APPROVAL
(PC-11 COST RS.796.778)
7/2007
(0) 6/2011
(R) 212015
TOTAL
FOREIGN
LOCAL
1 7.2004
30.6.2015
TOTAL
FOREIGN
LOCAL
2012
2017
TOTAL
FOREIGN
LOCAL
172009
2020-21
11 72005
31.12.2013
TOTAL
FOREIGN
LOCAL
THROW FORWARD
AS ON
30.6.2013
,EXPENDITURE
UPTO
JUNE 2013
(PROVISIONAL)
13,834.948
6,522.261
7,312 687
20,823.7 21
9,739.475
11,084.246
13,546,800
6,608.221
6,938 579
3,753.570
1,649.480
2,104.090
25,750.760
7,728.000
18,022.7 60
7,066 962
3,032 080
4,034.882
83,601.040
65,865 368
17,735.672
834,205.000
312,943.000
521,262.000
74,590.140
TOTAL
FOREIGN
LOCAL
74,590.140
RS IN MILLION)
BUDGET
ESTIMATES
2013-14
RECOMMENDED
(6-7)
15,513.624
3,147.692
12,365.932
19,541.604
7,705.000
11,836.604
15,511.621
6,528.000
8,983.621
2,849.335
2,248.667
600.668
6,581 507
2,269.000
4,312.507
1,056.27 5
243.000
813.275
5,144.126
4,508.000
636.126
8,671.776
8,671.776
662.772
662.772
BY
WAPDA
AUTHORITY
(1,678.676)
3,374.569
(5,053.245)
1,282.117
2,034.475
(752.358)
(1,964.821)
80.221
(2,045.042)
904.235
(599.187)
1,503.422
19,169.253
5,459.000
13,710.253
1,222.000
131.000
1,091.000
3,291.000
583.000
2,708.000
1,411.000
1,411.000
885.000
701.000
184.000
5,710.000
1,770.000
3,940.000
6,010.687
2,789.080
3,221.607
3,561.000
1,702.000
1,859.000
78,456.914
61,357.368
17,099.546
19,795.000
18,030.000
1,765.000
825,533.224
312,943.000
512,590.224
73,927.368
73,927.;68
8,150.000
J
8,150.000
1,745.000
1.745.• 1II
4,0
28.2.2013
g-
POWER
BUDGET
NAME & LOCATION OF
PROJECT
- ELECTRIC
RS IN MILLION
BUDGET
ESTIMATES
ESTIMATES'201344 PROPOSED .
STATUS APPROVED/
UNAPPROVED
DATE OF APPROVAL
DATE OF
COMMENCEMENT
COMPLETION
TOTAL
FOREIGN
LOCAL
PC-I / PC-II
COST
EXPENDITURE
UPTO
JUNE 2013
(PROVISIONAL)
THROWFORWARD
AS ON
30.6.2013
2013-14
RECOMMENDED
(6-7)
8
111110111111
2
10 HARPO HPP SKARDU
NIAREA (33 MW)
11 BUNJI HYDRO POWER
PROJECT (7100 MW)
12 PHANDAR HYDRO POWER
PROJECT (80 MW)
13 LAWI HYDRO POWER
( 69 MW)
14 CHOR NALLAH HPP CHITRAL
N/AREA (621 MW)
15 SPAT GAH HYDRO POWER
( 567 MW)
16 BASHO HYDRO POWER
PROJECT (28 MW)
17 KOHALA HYDRO POWER
PROJECT (1100 MW)
18 PATTAN HYDRO POWER
PROJECT GILGIT BALTISTAN
(2800 MW)
19 REVIEW & EVALUATION OF
MASTER PLANNING OF HYDRO
POWER & WATER RESOURCES
OF WESTERN RIVERS
20 rsUDHNIAL HYDRO POWER
'&\-ROJECT MUZAFFARABAD AJ&K
(960 MW)
budget 2013-14
TOTAL
FOREIGN
LOCAL
12,957.177
7,871.225
5,085 952
28 964
TOTAL
FOREIGN
LOCAL
2,091.406
33 965
2,057.441
2,059.634
304 2007
31.3.2013
TOTAL
FOREIGN
LOCAL
120.376
31 7 2005
30.6.2014
TOTAL
FOREIGN
LOCAL
_72005
31
30.6 2013
TOTAL
FOREIGN
LOCAL
7 3.2005
30.6.2013
TOTAL
FOREIGN
LOCAL
PC-I SUBMITTED FOR
APPROVAL
(PC-II COST RS.113.809)
PC-II APPROVED BY
ECNEC ON 26.5.2011
PC-II APPROVED BY
CDWP ON 30.4 2007
PC-II APPROVED BY
CDWP ON
22.03.2004
PC-II APPROVED BY
CDWP ON 7.03.2005
PC-II APPROVED BY
CDWP ON 7.03.2005
PC-II APPROVED BY
CDWP 27.11.2006
PC-II APPROVED BY
ECNEC 23.8.2006
PC-II APPROVED BY
CDWP 17.9.2009
PC-II HAS BEEN
INITIATED
UNDER APPROVAL
14 12 2005
30 6 2013
27 11 2006
30 6 2013
lam
(0) 12/2008
(R)26.8.2009
9 2009
17
0
30.6.2015
TOTAL
FOREIGN
LOCAL
TOTAL
FOREIGN
LOCAL
TOTAL
FOREIGN
LOCAL
TOTAL
FOREIGN
LOCAL
TOTAL
FOREIGN
LOCAL
28.964
BY
WAPDA
AUTHORITY
9
12.928.213
7,871.225
5,056.988
31.772
33.965
(2.193)
52.000
109.872
10.504
4.000
109.872
10.504
4.000
120.376
90.585
63.151
27.434
90.585
63.151
27.434
33.587
163.097
113.888
49.209
10 000
196.684
113.888
82.796
39.570
39.570
138.201
94.976
43 225
10.000
177.771
94.976
82.795
57.394
33.849
42.000
91.243
57.394
33.849
42.000
91.243
667.661
(121.929)
209.199
(331.128)
5.000
545.732
209.199
336.533
227.667
227.667
503.566
357.502
146.064
300.000
731.233
357.502
373.731
20.000
402.000
5.000
422.000
20.000
402.000
5 000
422.000
34.000
246.873
78.704
168.169
187 000
280.873
78.704
202.169
2,059.634
33.587
667.661
34.000
52.000
10.000
10.000
5.000
300.000
187 00
28.2.:
2
gct
POWER,
0 ELECTRIC)
BUDGET ESTI A 1'20113- ROPOSED).'
(RS IN MILLION
SR
NAME & LOCATION OF
PROJECT
NO
STATUS APPROVED/
UNAPPROVED
DATE OF APPROVAL
DATE OF , ,
,,
COMMENCEMENT
TOTAL
COMPLETION
FOREIGN
LOCAL
PC-I / PC-II
COST
EXPENDITURE
UPTO
JUNE 2013
THROW FORWARD
AS ON
30.6.2013
(PROVISIONAL)
(6-7)
2
1
21 TRAPPI HYDRO POWER
PROJECT MANSEHRA KPK
(32 MW)
22 THAKOT HYDRO POWER
PROJECT
(2800 MW)
3
UNDER APPROVAL
4
B- NEELUM JHELUM HYDRO
6
158.032
113.022
45.010
8
7
31.000
31.000
127.032
113.022
14.010
2013-14
RECOMMENDED
BY
WAPDA
AUTHORITY
9
63.000
63.000
PC -II APPROVED BY
CDWP ON 18.6 2012
Mav 2013
April 2015
TOTAL
FOREIGN
LOCAL
TOTAL
FOREIGN
LOCAL
719.628
303.139
416.489
1,095,755.681
423,263.505
672,492.176
40.000
40 000
78,945.140
26,649.359
52,295.781
679 628
303.139
376.489
1,016,810.541
396,614.146
620,196.395
250.000
250.000
46,698.000
22,917.000
23,781.000
chairman ECNEC for revised
PC-I cost.
1.7.2005
(0)20.11.2012
(R)2016
TOTAL
FOREIGN
LOCAL
TOTAL
FOREIGN
LOCAL
274,882.590
158,367.180
116,515.410
1,370,638.271
581,630.685
789,007.586
79,226.501
15,740.523
63,485.978
158,171.641
42,389.882
115,781.759
195,656.089
142,626.657
53,029.432
1,212,466.630
539,240.803
673,225.827
12,592.000
5,345.000
7,247.000
59,290.000
28,262.000
31,028.000
11 7 2005
31.12 2013
TOTAL
FOREIGN
LOCAL
13,915.000
TOTAL
FOREIGN
LOCAL
720.000
200.000
520.000
TOTAL HYDEL (A)
23
5
TOTAL
FOREIGN
LOCAL
BUDGET
ESTIMATES
TOTAL (A+B)
C - (FINANCING BY
FEDERAL GOVERNMENT)
9 DASU HYDRO POWER
10 HARPO HPP SKARDU
N/AREA (33 MW)
23 NEELUM JHELUM HYDRO
BASHA DAM PROJECT
LAND ACQUISITION (4500 MW)
(4500 MW)
•
•
TOTAL ADP ( C)
GRAND TOTAL
1A+B+C)
PC-I UNDER APPROVAL
PC-II COST RS 796 778
PC-I SUBMITTED FOR
APPROVAL
PC-II COST RS 113.809
13,915.000
chairman ECNEC for revised
PC-I cost
1.7.2005
(0)20.11.2012
(R)2016
TOTAL
FOREIGN
LOCAL
-
APPROVED BY
ECNEC ON 20.8.2009
FOR Rs.60,052(M)
1 7.2009
2020-21
TOTAL
FOREIGN
LOCAL
119,975.000
TOTAL
FOREIGN
LOCAL
TOTAL
FOREIGN
LOCAL
1,500.000
1,500.000
(1,500.000)
(1,500.000)
24,000.000
24,000.000
105,165.253
105,165.253
41,460.000
119,975.000
14,809.747
14,809.747
119,975.000
119,975.000
1,490,613.271
581,630.685
908,982.586 .
16,309.747
16,309.747
174,481.388
42,389.882
132,091.506
103,665.253
103,665.253
1,316,131.883
539,240.803
776,891.080
80,095.000
200.000
79,896.000
139,385.000
28,462.000
110,923.0013
41,460.000
REVISED UNDER APPROVAL
28 2 2013
budget 2013-14
90
A-NNE-s-
XIII
Generation Licence
Water & Power Development Authority
(WAPDA)
Wapda House
Lahore
SCHEDULE-II
Sr. No.
1.
2.
4.
1
6.
Power Station
Hydel Power Station
Tarbela
Hyde! Power Station
Man la
Hyde! Power Station
Warsak
Hydel Power Station
Ghazi Brotha
Hydel Power Station
Chashma
Hyde! Power Station
Renala
Hydel Power Station
Chichoki
Hydel Power Station
Nandipur
Hyde! Power Station
Shadiwa!
Net
Auxiliary
Consumption Capacity
(MW)
(MW)
Installed
Capacity
(MW)
3478.00
16.00
3462.00
1000.00
25.00
97:5.00
242.96
5.50
1450.00
18.00
4.
184.00
182.50
1.10
1.086
13.20 /
11.70
Hydel Power Station
Rasul
0.70
13.10
0.40
13.10
2.32
19.65
4.
14.
4432.00
Hyde! Power StatiOh
Dargai_
20.00
0.05
19.95
Hydel4
Rart
1.00
0.003
0.997
HklelWer,Station
klEr0f4 Garhi
.
,
A.,..Hyde1 Rawer Station
Gomal Zam
4.00
17.00
121.00
130.00
0.50
129.50
17.
Power Sii.,Ition
Jinnah Hydel
Hyde! Power Station
Mai Khwar
Hyde! Power Station ,
Duber Khwar
Hydel Power Station
Khan Khwar
72.00
0.70
71.30
18.
6879.56
75.687
Grand Total
96.00
Page 2 oi 2 of Schedule,-11
(Modification-I)
(HYDROELECTRIC - CORE BUSINESS)
CONDENSED STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2012
December 2012
June 2012
Rupees in thousand
ASSETS
Rupees in thousand
RESERVES AND LIABILITIES
December 2012
June 2012
Non current assets
Reserves
95,352,396
72,522,716
88,489,646
54,250,496
54,282,399
Government of Pakistan investment
73,670,699
Reserves
Revaluation surplus
Deferred grants
223,273,591
215,294,761
59,967,915
631,136
54,715,389
12,967,101
11,590,076
73,566,152
66,901,618
10,511,106
10,581,842
8,000,000
152,701
358,469
Current liabilities
Other payables
Accrued Interest
Current portion of loans and borrowings
CONTINGENCIES AND COMMITMENTS
254,975,908
298,530
1,927
1,837
255,276,365
252,180,532
2,450,211
93,208,394
2,626,951
83,038,497
10,438,876
8,309,509
261,000
7,135,259
596,153
1,865,259
1,846,578
55,102,687
48,731,899
2,594,518
5,189,035
74,707,823
70,226,271
143,792,423
141,609,441
367,066,014
356,904,202
Current assets
Stores and spares
Trade debts
5,431,168
3,613,454
111,789,649
104,723,670
367,066,014
356,904,202
8
The annexed notes from 1 to 10 form an integral part of these financial statements
G.M FINANCE (POWER)
251,854,270
324,425
MEMBER (POWER)
CONDENSED INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2012
July 2012 to
Dec 2012
July 2011 to
Jun 2012
Rupees in thousand
Sales
22,980,384
39,861,048
Cost of electricity
10,185,957
19,172,865
Gross profit
12,794,427
20,688,183
677,720
596,345
12,116,707
20,091,838
581,003
1,462,174
12,697,710
21,554,012
3,427,839
6,840,443
9,269,871
14,713,569
Finance cost
2,439,024
4,738,822
6,830,847
9,974,747
Operating expenses
Operating profit
Other income
Hydel levies
G.M FINANCE (POWER)
MEMBER (POWER)
93
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DEC 2012
July 2012 to
Dec 2012
July 2011 to
Jun 2012
Rupees in Thousand
6,830,847
9,974,747
54,282,399
58,258,868
61,113,246
68,233,615
rofit for the year
Profit
Revaluation of power generation plant assets
Total Comprehensive Income for the year
G.M FINANCE (POWER)
MEMBER (POWER)
STATEMENT OF CHANGES IN EQUITY INTEREST
FOR THE PERIOD ENDED 31 DEC 2012
Reserves
Revaluation
Surplus
(Note 8)
Note
Reserve
for
development
works
(Note 7.1)
GoP
investment
(Note 7.2)
Unappropriated
profit
Total
Rupees in thousand
66,150,261
Balance as at 1 July 2010
122,976,182
56,825,921
9,974,747
GoP investment in development works
2,756,438
10,597,613
10,597,613
(9,974,747)
8,388,169
74,538,430
9,974,747
Other comprehensive income - revaluation surplus
Total comprehensive income for the year
58,258,868
9,974,747
18 3 1
(3,976,469)
54,282,399
68,233,615
2,342.744
3,976,469
(9,974,747)
9,974,747
9,974,747
58,258,868
2,342,744
(1,586,578)
144,718,402
70,179,972
58,258,868
9,974.747
2,756,438
88,489,646
215,294,761
72,522,716
7.946,927
1,116.080
6,830,847
Net profit for the period
(31,903)
31,903
31,903
(6,830,847)
6.830,847
54,250,496
Balance as at 31 DEC 2012
95,352,396
73,670,699
MEMBER (POWER)
G.M FINANCE (POWER)
-
t- _
223,273,591
HYDRO ELECTRIC(CORE BUSINESS)
NOTES TO AND FORMING PART OF THE CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 DEC, 2012
11
13
studies of defunct projects
1.1
(Rs. in Thousands)
Note
PROPERTY, PLANT AND EQUIPMENT
Jun 2012
DEC 2012
182,781,930
72,193,978
186,993,717
64,860,554
254,975,908
251,854,271
885,001
2012
Depreciation
Cost
Particulars
As at
30 June
2012
Revaluation
Surplus
As at
31 DEC 2012
Additions/
(Deletions)
As at
01 July
2012
Revaluation 1.
Adjustment
For
the
Period
As at
31 DEC
2012
Deletions/
adjustments*
Book
values
as at
31 DEC
2012
Rate
5,154,506
Owned.
Land
Transmission Line Equipment
Dams and reservoir
Tunnels Weir, Head/ Tale Race
Office equipmer.
Furniture and tixti re
5,171,444
(16,938)
5,154,506
7,560
39,853,423
9,624,940
353,410
39,845,863
192,352,900
18,541
192,371,441
117,100,024
1,899,767
9,978,240
29,875,183
2%
3,035,020
120,135,044
72,236,397
1 99%/4 987%
38,336
113,501
1,786,266
75,165
744,586
63,679,595
13,953,324
14,697,910
78,377,505
98,544
49,272
147,816
5,038,712
5,186,528
594,376
10,821
605,159
227,230
832,389
(38)
7,191
1,966
12,388
10%/25%
31,076
33,016
45,404
(26)
824
572
36,408
10%
599,911
563,042
563,635
600,043
21
132
193,245
20%
1,382,808
1,403,116
1,596,361
2,756
25,040
17,552
1,571,321
4,251,535
2,603
4,542,000
182,781,930
42,350
3,458,000
146,881,299
3,458,000
151,135,437
7%
8,000,000
333,917,367
186 993,717
333,875,016
44,944 091
146 881,299
10 572,543
1,899,767
78,377,505
5,186,528
825,198
44,580
Dec 2012
8,000,000
333,875,017
June 2012
171,519 054
Assets subject to itarah
151,783 419
96
93 524 551
8,412 657
(110)
2%
10%
1.3 Capital work in progress
(Rs. in Thousands)
J ul y 2012
Dec 2012to
Gomel Zam
July 2011 to
02
3,229,053
Khan Khawar Project
Jun
3,229,053
188,526
Allei Khawar Project
12,950,559
11,415,624
16,070,163
14,657,604
Jinnah Hydro Power Project
14,447,277
14,434,621
Bhasha Dam Project
15,450,499
13,174,523
1,999,964
1,581,507
Dubbair Khawar Project
Golan Gol Hydro Power Project
Jabban Hydro Power Project
Kheyaal Khwar Hydro Power Project
Other projects under construction
2,059,884
898,335
514,574
383,275
5,283,479
5,086,012
72,193,978
64,860,554
93,208,394
83,038,497
93,208,604
83,038,497
Provision for feasibility studies
Total
2
TRADE DEBTS - unsecured
Receivable from NTDC (CPPA)
Provision for doubtful debts
Total
3
SALES
Variable charges
Fixed charges
Total
1,365,214
1,868,607
21,615,170
37,992,441
22,980,384
39,861,048
Rs. in Thousands
4
COST OF ELECTRICITY
Fuel charges
Salanes, wages and benefits
Retirement benefits
Dams inspection and monitonng cost
Depreciation
Power, gas and water
Insurance
Sundry expenses
Consultancy charges
July 2012 to
Dec 2012
NEPRA fees
Total
Jun
3 936
6,235
1,614,276
2,159,899
2,734,895
4,540,680
186,401
301,060
560,445
1,511,084
4,251,535
8,412,657
128,569
230,800
17,530
34,870
10,435
5,623
182,599
281,595
427,753
1,614,809
Return on assets to provinces
liarah rental -Sukuk-II
July 2011 to
2012
12,972
67,583
60,581
10,185,957
19,172,865
Rs. in Thousands
July 2011 to
2012
July 2012 to
Dec 2012
5
OPERATING EXPENSES
Rent, rates and taxes
Communication
Office expenses
Travelling expenses
28
13,272
17,275
4.749
5,150
16,088
12,452
26,023
20,873
11,524
Advertisement & penodicals
352,899
Legal and professional charges
Outside services employed
Vehicle running expenses
Authonty Overheads
Other expenses
Jun
14,485
10,993
24,429
30,419
116 930
176,748
111,666
307,658
112
292
677,720
596,345
Total
(1/
i'AKISTAN WATER AND POWER DEVELOPMENT AUTHORITY
HYDRO ELECTRIC (CORE BUSINESS)
6
The condensed interim financial information is un-audited and are prepared in accordance with the requirements of
international accounting standard (IAS) 34 "Interim Financial Reporting" for the management purpose. This should be
read in conjunction with annual published financial statement of Hydroelectric for the year ended June 30, 2012.
7
The accounting policies adopted for the preparation of this condensed interim financial statement are same as those
applied in the preparation of preceding annual published financial statement of the hydro-electric for the ended June
30, 2012
8
CONTINGENCIES
8.1
Contingencies
WAPDA First Sukuk Company Limited (WFSC), associated company of WAPDA, has issued Sukuk certificates
valuing Rs. 750 million to National Fertilizer Corporation Pakistan (Pvt) Limited (NFC) During 2009, it was discovered
that out of Rs. 750 million, a certificate valuing Rs 180 million was fraudulently transferred to a ghost company , Swift
Engineering Solution (SES), at the time of sale of such certificate to MIML by SES subsequent to the mentioned
transfer. Upon the occurrence of fraud, WFSC has lodged a case with Federal Investigation Agency (FIA) to probe out
the matter which is still in progress. WFSC has made payment of profit on Rs. 180 million to MIML (Rs 13 64 million)
on the condition that NFC will pay back the amount of Rs 13 64 million if certificate amounting to Rs. 180 million was
actually transferred by NFC to SES However, 8th, 9th, 10th and 11th year installments have been deposited in the
court on the its order. MIML being affectee has also filed a suit against the WFSC for the vaktity of its transaction with
SES. As the outcome of the Federal Investigation Agency's report and the filing of recovery suits against the culprits
and the court decision on suit filed by MIML, is not finalized, the determination of the title of the Sukuk Certificate
holders to the extent of Rs. 180 million cannot be ascertained However, WFSC is contingently liable to pay the half
year profit to the genuine certificate holders and to bear the loss of Rs 180 million on final redemption of the Sukuk in
the year 2012.
According to the Ijarah Agreement, Purchase agreement and Service Agency Agreement, all cost and expenses of the
Lessor (WFSC) are to be born by the Lessee (WAPDA) So, if outcome of the case adversely affect the WFSC, then it
will be the liability of WAPDA as per agreements between WAPDA and WFSC. However, no provision for the same
has been made in these financial statements as the management and legal counsel of Hydroelectric expect favorable
outcome of the matter.
9
Date of authorization for issue
This condensed intenm financial information was authorized for issue on DEC--2012 by the WAPDA HYDROELECTRIC
10
CORESPONDING FIGURES
In order to comply with requirements of International Accounting Standard34-'Intenm Financial Reporting'tha ;onaensedintenm balance
sheet and condensed intenm statement of changes in equity have been compared with balances of annual audited financial statements of
preceding financial year,whereas,the condensed intenm profit and loss account, condensed interim statement of comprehensive income
and condensed intenm cash flow statement have been compared with thebalances of compparable penod of immediately preceding
financial year.
G.M FINANCE (POWER)
MEMBER (POWER)
hl
A- t41\\ ax
- XV
WAPDA Hydroelectric
c16- )
Projected Hydel Power Stations wise revenue requirement for FY 2013-14
Sr.N
o.
Power Station
1 Tarbela
2 Ghazi Brotha
3 Man• la
4 Warsak
5 Chashma
6 Rasul
7 Dar• al
8 Nandi•ur
9 Shadiwal
10 Chichoki
Kuram Garhi
Renala Khurd
Chitral
'Khan
:Altai
20 Co orate offices
21 CWIP See work'
Installed
Capacity
MW
3 478
1,450
1,000
243
184
22
Net
Generation
GWh
14 981
7 568
4 945
1,021
1,055
76
Avg. Net
Fixed
Assets
Mln. Rs.
6 991
72,750
25,876
1 369
13,028
226
;163
O&M
expenses
Mln. Rs.
2,564
1,330
1,630
941
901
69
105
71
57
Employees
Depreciation
retiring
benefits
Mln. Rs.
2,210
775
1,082
549
453
94
139
105
72
Mln. Rs.
560
2,111
765
61
573
Ijara
Rental
Mln. Rs.
1,615
ROI
(See
working)
Mln. Rs.
1,200
11,429
4,399
233
2,113
38
NHPI
WUC
Mln. Rs.
6 000
742
IRSA
Charges
Misc
Income
Mln. Rs.
74.9
37.8
24.7
5.1
5.3
0.4
0.5
0.2
0.2
0.2
0.1
0.0
Mln. Rs.
Revenue
Rate at
Rs/kWh
0.92
2.07
1.74
1.61
3.81
2.74
2.73
4.73
3.93
5.17
7.57
18.90
32.80
1-446
2;668..
7.04
7.74
5.36
20 836.
.4595Z
89 982
13,124
Total Regulatory Rev gap
G. Total Revenue Requirement
11,597
12,237
15,830
1.25
A-NN_x„ X V
Power Station
Tarbela
Ghazi Brotha
Mangla
Warsak
Chashma
Rasul
Dargai
Nandipur
Shadiwal
Chichoki
Kuram Garhi
Renala Khurd
Chitral
Khan Khawar
AllarKhaWar
Duber=Khawar.
Jinna 11
Jabban ...
Gomal Zam
Corporate offices
CWIP See workin•
Net
Net
Avg.
0/S
Avg.
0/S
Fixed
Fixed
debts
debts
capital
debts C/B
Assets
Assets
Financing
0/B
cost
:
• :
Mln. Rs. Mln. Rs. Min. Rs.
1,350
1,320
1,380
6,991
6,876
7,107
19,453
18,086
20,820
72,750
71,874
73,625
25,876
26,017
25,734
1,369
1,484
1,254
2,232
2,051
2,413
13,028
12,803
13,253
226
248
205
99
122
75
73
89
57
44
51
37
27
34 ,
19
6
6
6
34
41
26
69
82
57
3,566
3,256
3675
9,835
9,748
., 9 1
4,951
,4,641
5,260:
'15,847-_
9 ' 16,245
'. 1
6549
r 6,365
6,703
22,209 . 20;830L
19464
7,772
7,35
8 193
16,4901
15,415
1 9 Z
2,653
3,573f ' 'MIKEtiae,:. • - 2;92
2,833
3,186
3,153
3,218
216
41,990
251
137,974
234
89,982
23,021
100,609
61,815
Interest
on debt
Avg
cost of
debt
Avg.
Equity
Financing
278
580
816
1,082
837
394
-
17.9%
12.2%
0.0%
0.0%
12.5%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
16 %
165% ,.
.165% ,
10 8%
, 14.9%
0.0%
5,641
53,297
25,876
1,369
10,796
226
99
73
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69
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,104897
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550
3 186
8,336
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234
28 168
241
2,369
Return on
Total ROI
Equity
WACC
1,200
11,429
4,399
233
2,113
38
17
12
7
5
1
6
12
1"_646
2,668
, 3511
2,228
488
542
17.16%
15.71%
17.00%
17.00%
16.22%
17.00%
17.00%
17.00%
17.00%
17.00%
17.00%
17.00%
17.00%
16.73%
-16.84%
, 16.85%
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;15:22%
17.00%
40
4 788
40
13,124
17.00%
14.59%
1,159
277
258
1,986
261
847
1,376
414
2,194
7,056
1,239
845
17.00%
16.99%
15.20%
13.68%
13.42%
17.16%
959
9,060
4,399
233
1,835
38
17
12
7
5
1
6
12
'
ia66. .
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2,429
1;391
94
542
qu ty
CWIP working
4V-vs..-.V
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6,581
1,056
5,144
23,574
663
4,972
12,291
4,617
24,939
73,184
16,323
6,620
9,436
2,837
15,042
48,379
8,493
5,796
I
Golen Gol
Ke al
Tarbela 4th Ext
Diamer Basha
Dasu
Feasibili studies
3,501
1,731
2,059
357
22 538
4,508
15,968 Mal
13,915
1,173
457
2,616
1,208
13,523
36,695
6,958
815
.
445
205
2,028
4,631
879
148
17.0%
17.0%
15.0%
12.6%
12.6%
18.2%
•
6,820
1,629
1,519
11,683
1,535
4,981
.
/
()_12)

Copy of Tariff Petition

Transcription

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