Details of agreements with IPPs tabled in NA

ISLAMABAD: Minister for Power Division Sardar Awais Leghari Wednesday presented in the National Assembly the details of agreement with IPPs and the savings made from the revision of tariff.

The power minister said pursuant to the negotiations between the IPPs and Task Force, power purchase agreements with five IPPs had been terminated, which will result in overall savings of around Rs411 billion over the remaining life of these projects.

Replying to the question of Mirza Ikhtiar Baig, the House was told that 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 these projects.

The House was further told that negotiations were ongoing with the remaining IPPs/GPPs and tariff reduction would be ascertained after their conclusion. However, it was expected to be in the range of Rs2 to 4/unit. Responding to another question, Leghari told the House that the government was reviewing the agreements with the IPPs and by now five agreements had been terminated through the Task Force constituted by the prime minister for implementation of structural reforms in the power sector. Moreover, tariff terms have been revised with eight bagasse power projects whereas negotiations with other thermal IPPs/GPPs are in process which will further ease financial burden on the consumers.