11 IPPs likely to get Rs131bn Circular Debt Payments

September 20, 2021

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In the upcoming meeting of Economic Coordination Committee, the Power division is expected to send a summary to pay Rs. 131 billion to 11 independent electricity producers (IPP) as the first 40% of the agreed amount. The said IPPs belong to 2002 Power Policy.

Previously, after deliberation, the Cabinet Committee on Energy had approved the final report to pay all 11 IPPs which have signed contracts, with the exception of Nishat Chunian Power Limited as NAB is investigating its Owner Mian Mansha.

The following beneficiaries will receive 40% of the agreed amount: (i) Atlas Power-RFO; (2) Attock Gen-RFO; (3) Engro Energy gas; (4) Saif Power-LNG; v) Halmore Power-GSNG; (6) Hub Power (Narowal) – RFO; (7) Liberty Power – RFO; (8) Nishat Power-RFO; (9) Orient Power-RLNG; (x) Foundation Power (Dharaki) – Gas; And (11) a sapphire electric RLNG.

The government has already paid out Rs. 90 billion under the IPP programs created before 1994, which is 40 percent of the first tranche of the total amount agreed in June this year. However, the payment of the IPP under the 2002 policy was delayed because the ongoing investigation into M / s Nishat Chunian Power Limited was linked to letters sent by NAB to the Energy Ministry that pressured the authorities.