Rs411bn saved by annulling agreements with 5 IPPs, NA told

ISLAMABAD: The Power Division placed a report in the National Assembly with regard to negotiations between the Independent Power Producers and the Taskforce, and stated that power purchase agreements with five IPPs had been terminated, which would result in overall saving of around Rs411 billion over the remaining life of these projects.

The Power Division, in its report, stated that similarly, savings on account of revised tariff terms with eight bagasse-based power projects were estimated to be approximately Rs238 billion over the remaining life of the projects. The report said that negotiations were going on with all remaining IPPs/GPPs. After conclusion of these negotiations the tariff reduction will be ascertained. However, it is expected to be in the range of Rs2 to 4 per unit.

After conclusion of the negotiations, the tariff reduction would be ascertained. However, it is expected to be in the range of Rs2 to 4 per unit.