Prldtutrkhwa gouse' S..dQ.Ro.

4 Pcshrnrr CNtt:
CEIEF MINISTER

No.PS/CM/lc/1-3l10 Dated Peshawa,r 30/12l2013

SUBJEC'T:

PIEEIUNEIilSA
Dear. ,'1,. 0r"'. !1:*:, f4oA,

of accorDmodation shown in agreehg Ll Vfrile appreciatirg youl $e113e

prinople with

tansfefting

power secto! assets to the Provincia.l

Govcmments, as repoftad in elecEmic $edi4 late last sighq I take this opportunity (o formily apprise you of tlrc modalties of taking over the "lntegrated Powe! ManagernedtS'stml' io Khyber Paklrtunkhwa"which bas been thc subjct 6f htense discussionin lhe teceat plsr Yo\r wolrld agreewith me that lhe dclivcry of electncity in this provnce has bee'! a and the dme has cooc to take so.uceof gddt'iioguish to the masses 'concreteard mearirlgful stepsto allwiat< tle baidships of tle people once fo! AIL This becomes evm mole discooceding for tbe general public to suffer unbeatable load shcdding deFpite thc fac! that tbeir Povincc (heapesr elecEiciq. produces afld surplus
\t, | -'

let mc rerterater}ar we fn order to pur the mntter rnto plopc! i_arspecovc fully and uncquivocdly edotse the statment ot Mr. imran Khan

PTI, legardiog taking over of:the Powe! Sctoi AFset! includrlg -Chaiman The bask. obiectives of dris paraphenfahaIESCO nlong vith fiece-ssary dcsand obflousty is to eflabie t}re P:sviooal Covemrneot rc effecuvely and comprehenspvely dcl \tith all $e component that collectively

cootributeiio'i;rJds t}re managemcnt of pbwcr delirely to the consume$.

Pekhtunkhws llourg S.A,Q,Roed Perhwar Cartll

cgItrI MIMSTER

You would agrcc \rith mc that thc ccntralizedpowcr systch is oot bccn it is iocurnbenttbat aU the tkee elements able to deliver rherefore i.e generaiion,distributioo and teosmission must be giyeDunder thc conuol ofProvincial Governmcnt io an all-cncoinpissingpackage deal

Vc stand committed to ouf statcmcrrt but our focus wasn't merEly thc distriLution of clectticity but the entire systernincluding the gcnerationand tianshissiod f^cilities. !?e therefote dem:rnd that as a comprehensive package dea\ the Genetation and Transmission Facilities must also concurendy ttarsfe! alongwith diseibution system.lt is a mattc! of record tl1rt PESCO has been consistendya victim of oeglcct and one of tle main causes of such an erratic atrd dilapidatedsystemis ro iniqutous and uojust distdbution of fedeml investments in dre Power iqfrastrucrure in dris Prooince. While $e past inequitie$ may not be atuibutrble ro your govemheflt the preseDtinfumities and shortcomingsceruainly demandyour immediatcattcntio[ Io this conlcxt, our furthctrcquircdcots in respons to trederalGovernment propos*! which rnust lotm part of thc packagedeal, alc as follo$s:

.Alongside transfcning thc Gcnci:atioo ald transmissi<n ficilities situatcd witiliri Khyber Pakhtunkh*a, FedemlGoyetnmmt may not only handovcr PESCO frce of aI pnst liabilities, lo$sesand deb$, with a dean balanceshet but sh4ll also ensure rlat xt rhe tirne of
tltulsfer ell dle ireqtlities in past invesFnents are fully addressed.

Prkhtrlktw. House, S.A,Q,Rord, PG3hNrrrCatrtt:

CSIEf MIWISIEB

b.

Pending a cornPlthen$ive but inteliigerdy phased Enetgy loss Rcduction (,LR) ploglarnr to bc undenaken by the Pro';inciat Govcnimcntio bring dosn PESCO's lossesflorn presert 5670to at Iea-t the natiooal ayffage of 13% oacetle DISCO stftnds$;ns{"r!ed, rhe tedera! go\'--hrncn: shali stani cohrnitted butdeu/onus of theseldsses for ai least6vc ycalr. tr plck rhe

c,

. Foi gnelagon units, a.ll ne.:essary nicasuresmust lrnncdhtcb be ensuredio that thc plart factor / c pe.ciq'bctots are imptovcd ard brought.to intcroationally aEcepeble t?nges.

d_

All onfolJtg erte$ion or BMR proFra.rl,1s.. ftrnclctlby the PSDP sha:i pcr olginal plaa and thc cr.irting iotrces :rf 6rndirg. cqntinue a^s

Te tgmpersate the lean yiqter rnonths, fedtal go1-riltnert sball gu*tantee supply of at leait a 1000 \f!fs to drc P4xrnce cudng vintcrs ftDEl ot]rr.lirermalsourcrs for severiycir:rs ir lir:c \4in K-E.--c(j 'iqdel

t- f.

To t'uld base load thcrmal planrs f.:rr wil.e;s ps-t"irlly, fe.l1^'zi suJet:Im{rat must immedi*teT allccac 2(r0 I[}{CFD gas m dhyber PalhtunLnp'e, io tli"r Pioi.nce mav establishthermii 6rwer houses Locompqnsrtc lhc diF in hydeigenr.rai:] in wr:rters..

Pdrhtur ahwr go|||! S.A.Q. Rod, Per[|r|r Crrtt!

g,

Feded Govemmmt shalladdrcssthc iocquitablcinvcstarcnrrlrough compensdungallocanons in next fwe PSDP5 for imptovement of lectricitysectorin tlrc Provinc.

Ptovincial Govetrrment shall b .t libcrty to ru! the Povrer Sector Facilitiesincluding DISCO on optimally required lluman Resourcc drly, to be bandpicked &om amongst the existing staff andlor Enrket, . based on intemational bcst ptactices and due

diligedce/technical advicc. AII surplus staff/employees shall bc ,absorbed/adjusted by the Fedclal Gove.snent in other fedeml
alEUeS.

Fo! putpo$esof tunning the day to dny and odter aflhi$ in relaEonto electlicity, thc Provinee must be excluded from NEPRA :egularory rcgrme, as the Provincf, \,ould not be amentble ro tegrrlatow oyetsight of a federal entity, whcn it onDs all ihe cotnponent df integratcdregime,so proposed.

'.

i.

amendmcnts Provincc shall be eoabledthrowh oecessary legisJagon, in statutory-framcwotb regulatoly regime and changesin vuious power poLcies to effectively nra end matragethe affairs of powcr systemin rlle Province

Prkltstlrlwr Houre Ro|d' s.A.Q, Pa*rtrrr Crtrttl

Cf,EAMIN! TEN

All ,rrars ofNHP must also immediatelybe paid as pet decisionsof NFCS, CCI! zfld othe! fo!a. Most irrlpofta-ntlythe decisionsof rhe Tchnictl Sub-Co[rnfttee so ootifid by the Fcderal Finaace Divisioo dared16,03.2013 must bc sivcn firll effecL

I arn.also scparatclyvriting to dre \r,orthy Federal Midstr fo! lVater and PowEt to put otr lrecotd the abovc mandatorytetl|ts and condidons fot the prcposed tfarsfet bcsidcssugcstingcoosdmtior of a techoical committee fot finalizing futthet mbdalides.

Vidr profouod rcgerds.

Yourssincerely, P..'qr.-r*.L4. Pen'ezKhatut

Men Muhammird Na*'az Shatif Esq., Pdme Minister, Islamic Republic of Pakistan Prirn.Ministcr Secietariat, Iel4.|rribed