950827

Kot Addu power plant privatization

Workers withdrew

opposition after

150 pc pay rise

ASHRAF KHAN

ISLAMABAD: A sheer rise of more than 150 percent in the gross salary package of Kot Addu Power Station employees has convinced the Collective Bargaining Agent (CBA) to withdraw its opposition for privatization of the combined cycle power station, worth billions of rupees.

"We have laid off our hands from our stance for not privatising the KAPs without any threat of bribery said Khurshid Ahmed, General Secretary of Wapda Central Union. "We have realised the government compulsions under new world economic order," he said in his remarks before signing the agreement.

Following a protrected session of confrontation, the Privatization Commission (PC) and Wapda Hydro Electric Central Labour Union (WHECLU) have entered into an accord paving the may for the privatization of Kot Addu Power Station. The agreement ansures full job security in addition to 35 percent raise in salaries of the workers, the newsmen were told at a ceremony held here on Sunday. Moreover an option for purchasing 10 percent shares of KAPS will be given to the employees.

Employees in BPS I to 4 and 12 to 20, both technical and non-technical, will be remunerated by 50 percent power house alllowance, says the agreement. For the employees of BPS 5 to II the allowance will be paid at the rate of 75 percent of basic pay to the technical staff whereas to the non-technical staff it will be 50 percent of the basic pay.

Another allowance, called generation allowance for which non-generation employees will also be entitled, will be paid at different rates. Accordingly the employees having served upto 7 years, willl be paid 50 percent; 7 to 14 years 55 percent; and those with 14 years of service and above will be paid 60 percent of basic pay.

The package will come into effect the date the power station is taken over by new management.

On behalf of the government Naveed Qamar, Chairman Privatization Commission and Shamsul Mulk, Chairman Wapda signed the agreement, On CBA side Mian Mohammad Munir, President and Khurshid Ahmed, General Secretary (WHECLU) inked the paper. Ghulam Mustafa Khar and Salman Farooqi, Minister and Secretary, Ministry of Water and Power respectively were also present on the occasion.

Naveed Qamar said signing of the agreement is a landmark as it will expedite the process of Kot Addu Power Station privatization. He said the government guarantees the implementation of the agreement. He said that the agreement will not only give relief to the Kot Addu employees but the whole country will reap the fruit of this agreement, as the issue has been a testcase and under observation of foreign investors.

Ghulam Mustafa Khar, Minister Water and Power lauded the efforts of Wapda and Privatisation Commission in resolving the disputed issue amicably.

Mian Munir and Khurshid Ahmed, President and General Secreary of WHECLU respectively termed the day as historic. Highlighting their effort they said both sides experienced crucial and dramatic ups and downs during negotiations. "The government blamed us that our movement was politically motivated and thus we were pressurised with various tactics but at every stage we categorically told the government side that our struggle was for the sake of workers rights and nothing else. At a stage we decided to go for country wide power shut-down in desparation but considering the miseries of helpless people we changed our mind. They expressed the hope that the government will implement the agreement with letter and spirt."

Privatization of Kot Addu Power Station will lesson the debt burden of Wapda by 756 million dollars (Rs 23,436 million) as the repayment of loan at an increased mark-up of 14 percent will also become the responsibility of the buyer. The loan was obtained by Wapda at an interest rate of II percent. The difference of 3 percent interest will bring additional returns to the government of Pakistan.

It may be mentioned here that initially 22 companies had shown interest in purchasing 26 percent shares of KAPS. Out of them five have been short listed keeping in view their proven technological competence and financial strength. Two of these are UK-based while three of them are US firms.

According to the plan 26 percent of the shares will be sold to the highest of the five bidders after KAPs has been converted into Kot Addu power company.