WAPDA, the Pakistan Water and Power Development Authority, was created in 1958 as a Semi-Autonomous Body for the purpose of coordinating and giving a unified direction to the development of schemes in Water and Power Sectors, which were previously being dealt with, by the respective Electricity and Irrigation Department of the Provinces.

• Since October 2007, WAPDA has been bifurcated into two distinct entities i.e. WAPDA and Pakistan Electric Power Company (PEPCO). WAPDA is responsible for water and hydropower development whereas PEPCO is vested with the responsibility of thermal power generation, transmission, distribution and billing. There is an independent Chairman and MD (PEPCO) www.pepco.gov.pk replacing Chairman WAPDA and Member (Power) who were previously holding the additional charges of these posts.

• WAPDA is now fully responsible for the development of Hydel Power and Water Sector Projects.

• PEPCO has been fully empowered and is responsible for the management of all the affairs of corporatized nine Distribution Companies (DISCOs), four Generation Companies (GENCOs) and a National Transmission Dispatch Company (NTDC). These companies are working under independent Board of Directors (Chairman and some Directors are from Private Sectors).

• The Companies are administratively autonomous and leading to financial autonomy by restructuring their balance sheets by bringing their equity position to at least 20 percent, required to meet the prudential regulations and to facilitate financing from commercial sector (approved by ECC).

• The Loan Liability Transfer Agreements (LLTA) have been signed with Corporate Entities and execution of loan transfer is complete.

• All Entities have the physical possessions of all their operational assets.

• On 24th Feb. 2007 Ministry of Water & Power notified NEPRAapproved Tariff for all Distribution Companies replacing unified WAPDA Tariff.

• Legal Agreements such as Business Transfer Agreements, Operation Development Agreement, Energy Supply Agreement, Business Supplementary Agreement and Fuel Supply Agreement etc. were executed between WAPDA and Corporate Entities to facilitate commercial operations.

• Regulatory instruments like Grid Code, Distribution Codes, Performance Standard for Distribution Companies and Transmission Companies were  drafted and got  approved from (www.nepra.org.pk) in 2007.

• All major lenders gave their consent for transfer of their loan from WAPDA to Corporate Entities, thus 326 loan assumption agreement were signed amongst respective Companies, WAPDA and EAD (Economic Affairs Division) GOP.

• CPPA is established under the coverage of NTDC for payments from DISCOs to IPPs, GENCOs and NTDC. Ultimately, it will function independently under Federal Govt. and all forthcoming IPPs will be under CPPA.

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The Charter of Duties of WAPDA is to investigate, plan and execute schemes for the following fields:

1. Generation, Transmission and Distribution of Power.
2. Irrigation, Water Supply and Drainage.
3. Prevention of Water logging and Reclamation of Waterlogged and Saline Lands.
4. Flood Management.
5. Inland Navigation.

The Authority comprises of a Chairman and three (3) Members working through a Secretary.