Two separate committees under the federal cabinet have approved the payment of Rs 403 billion in instalments to 46 independent electricity producers (IPPs) under the agreement.
According to Dawn newspaper, now only one of the 47 IPPs, Turkey’s Zorlu Energy, is left behind, signing a memorandum of understanding with the government’s negotiating group to give waiver from the Initial Purchase Agreement (PPA).
A cabinet minister told Dawn that as of November 30, 2020, the Turkish company owed about Rs 1.5 billion and its executives were not available for logistical reasons.
“I hope Zorlu will join by February 12, otherwise the issue may be raised later,” he said.
The revised payment terms will be approved by the federal cabinet on Tuesday after approval by the Cabinet Committee on Energy (CCOE) and the Committee for the Coordination of the Economy (ECC), a senior government official said.
He said it would pave the way for 40 percent of the first installment (just over Rs 161 billion) to be paid within a month, and the remaining 60 percent six months after that.
Of the 403 billion rupees, the largest share of about 100 billion rupees will go to the Kot Addu Power Company, followed by the Hubco Group with 75 billion rupees, the Mansha Group with 60 billion rupees, and then smaller companies with 15-16 billion rupees and so on. .Will get less.
According to the official statement, ECC was committed to the efforts of the members of the negotiating and implementation committees to exchange contracts with the 46 IPP Secretary of the Energy Division and settle the arrears by November 30, 2020. To the Secretary of the Energy Division to determine the method of payment.
This will gradually save the Pakistan Rs 836 billion over the average life of these projects.
In another statement, the CCOE has approved recommendations so that it can be sent to the Cabinet of Ministers for further approval.
CCOE also gave the green signal for the creation of three solar energy projects with a capacity of about 50 MW, HNDS Power, Helios Power and Meridian Energy, as they had legal permits, including approved tariffs.
These plants were reportedly shut down due to “misreporting” of the 2019 CCOE decisions.
Latest posts by News Desk (see all)
- Oil Prices down amid Geo-Political Uncertainty - November 1, 2023
- Govt to borrow PKR8.5 trillion in Bond Auction till Jan-2024 - November 1, 2023
- Nishat Chunian Ltd: 1QFY24 profit rises 13 percent to PKR 500mn - October 31, 2023