Government of Khyber Pakhtunkhwa Energy Power Department 18

Government of Khyber Pakhtunkhwa Energy & Power Department 18 th Amendment and its impact on Energy Sector 1

Comparison of Articles of 1973 Constitution before and after 18 th Amendment related to Energy & Power Department 2

• The 18 th Constitutional Amendment was unanimously passed by the Parliament and notified in the Gazette of Pakistan on 20 th April, 2010. • This amendment introduced changes to about 36 percent of the 1973 Constitution of Pakistan: 102 out of 280 Articles of the Constitution were amended, inserted, added, substituted or deleted. The 18 th Constitutional Amendment has redefined the structural contours of the state through a paradigm shift from a heavily centralized to a predominantly decentralized federation. • The 18 th amendment has re-demarcated the jurisdictions at the federal, inter-provincial and provincial levels by revising the Federal Legislative List Part I and Part II and abolishing the erstwhile Concurrent Legislative List. Subsequently, the legislative and executive authorities of the federal and provincial governments have been delimited by assigning the exclusivity of 53 subjects to the federal government, 18 subjects to the Council of Common Interests (CCI) and all residual subjects to the provincial governments. Further redistribution of functions at the district, tehsil and union council levels has been vested with the provincial governments in accordance with the policy framework enunciated in Article 140 (A) of the Constitution. 3

Clause Before 18 th Amendment 154 Functions and rules of procedure. (1)The Council shall formulate and regulate policies in relation to matters in Part II of the Federal Legislative List and, in so far as it is in relation to the affairs of the Federation, the matter in entry 34 (electricity) in the Concurrent Legislative List, and shall exercise supervision & control over related institutions. After 18 th Amendment (1) The Council shall formulate & regulate policies in relation to matters in Part II of the Federal Legislative List & shall exercise supervision & control over-related institutions”. 4

Dialogues between Federal & Provincial Government Gas Allocation Provincial Government has requested Federal Government as per Article 158 to allocate Natural Gas for Intended GTCC Power Plant at Khushalgarh, Kohat (800 MW) Federal Government has given the PPIB authority to provide gas through Competitive Bidding System Provincial Government has right to utilized the gas as per their requirements Violation of Article 158 5 Matter to be brought to CCI Article 154

Dialogues between Federal & Provincial Government Power Distribution Government of Khyber Pakhtunkhwa should be given the right to consume power produced from intended power plant in the province Khyber Pakhtunkhwa is deprived of their due amount of Electricity as per NFC Awards Formula The Federal Government should ensure the availability of the exact amount of Power in the provinces Violation of Article 157 6

Case Study: Machai & Ranolia Power Plants Dilemma Machai Hydel Power Project & Ranolia HPP clearly demonstrate lack of interest of Federal Entities 2. 6 MW Machai & 17 MW Ranolia Power Plants have already been completed NTDC is not taking keen interest in power evacuation from the plant The lack of co-operation by Federal Government is 7 harmful to both Provincial and Federal resources.

Dialogues between Federal & Provincial Government RLNG ISSUE RLNG distribution issues has been controversial and violates Article 154 of Constitution of Pakistan RLNG lies in scope of CCI as per Part II of Fourth Schedule of Constitution of Pakistan RLNG has been debated in ECC which is not the appropriate forum Khyber Pakhtunkhwa has requested Federal Government to allocate LNG for a Power Plant in the province 8

Dialogues between Federal & Provincial Government Liquid Petroleum Gas (LPG) The LPG lies in scope of Article 154 being in Part -II The provinces reservations regarding various LPG issues are not debated in the CCI Forum yet. The production and consumption of LPG should be debated in the CCI forum LPG and all other Oil & Gas resources should be dealt with under the umbrella of the Article 158 9

Conclusion Easy solution is to Obey the Constitution of Pakistan Complete implementation of 18 th Amendment Federal Government and Provincial Government should co-ordinate with the issues for smooth running of the project Federal Government should not surpass the CCI forum and should maintain Sanctity of Constitution of Pakistan Federal Government should not interfere in self explanatory Articles of Constitution Governments (Federal + Provincial) have to thrive hard together for the betterment of Pakistan 10

THANK YOU 11

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