ISLAMABAD: The federal government has assured the Independent Power Producers (IPPs) that their dues will be timely repaid and their outstanding issues will be resolved with mutual coordination, sources in the Ministry of Water and Power told The News on Thursday.
The Centre and the IPPs mutually made the decision in a meeting with officials of the Water and Power Ministry, Central Power Purchasing Agency (CPPA) and Private Power and Infrastructure Board (PPIB) here.
This was the third meeting in a row after the IPPs withdrawn their quest for sovereign guarantee claim in wake of non payments. Interestingly, last month IPPs 10-day deadline to the government for clearing their overdue invoices; otherwise, they will invoke their sovereign guarantees.
According to the official details, on February 15, 2017, the total verified and audited amounts overdue to the power sector (Excluding Wapda hydel) stood at Rs414 billion, with share of IPPs being Rs254 billion. On March 10, 2017, the verified, audited and undisputed overdue amount of IPPs was Rs245 billion.
The IPPs demand of the government to put forward an acceptable plan for clearing all payables and asked that National Transmission and Despatch Company (NTDC) and CPPA need to follow the contracts and stop violating other contractual provisions.
Sources added that both sides agreed to have more coordinated approach towards resolution of matters relating to timely payments, GST etc. These matters will be resolved in committees which will meet regularly as and when deemed necessary.
The IPPs assured their fullest cooperation, and they will contribute their input to the national grid. These days the IPPs are contribution more than 9,000MW to the national grid. The government is also trying its best to secure viable way out for IPPs
To resolve the issue of overdue amount, the PPIB has invited these IPPs, who had sent notices to invoke sovereign guarantee on non-payment of their dues, for meeting. It is pertinent to mention that earlier this month about 13 IPPs, who have overdue amount of around Rs245 billion, have invoked sovereign guarantees and served a final notice to the government.
These 13 IPPs have withdrawn their threat of invoking their sovereign guarantees in case of nonpayment and have now agreed with the government on coordinated approach and government has assured them to timely resolve their issues.
According to the IPPs earlier threat for invoking their sovereign guarantees and served notices include the IPPs that are established under the 1994 and 2002 power policies includes Pakgen Power (Rs7.778 billion), Liberty Power (Rs5.361billion), Hubco Narowal (Rs5.024billion), Atlas Power (Rs4.555 billion), Lal Pir Power (Rs4.552billion), Nishat Power (Rs4.881billion), Kohinoor Energy (2.306 billion),Attock Gen Ltd (Rs4.449 billion), Nishat Chunian Power (Rs4.16 billion), Saif Power (Rs1.503billion), Sapphire Electric (Rs1.396billion), Orient Power(Rs1.18billion) and Halmore Power GCL (Rs880 million). But now, they have withdrawn it, after the government’s assurance.
