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April 14, 2020

Govt calls IPPs for talks to review power purchase agreements

Top Story

April 14, 2020

ISLAMABAD: The six-member committee headed by Federal Energy Minister Omar Ayub Khan and representatives of IPPs will put their heads together on Thursday how to mutually review the power purchase agreements (PPAs) to secure relief in power tariff for masses and all sectors of economy.

"In the first phase of talks, two separate meetings will be held here on Thursday; one with the representatives of IPPs installed under 1994 power policy and other one with representatives of those IPPs installed under 2002 power policy,” a senior official for Power Division told The News.

"The meeting is also to be held with the IPPs installed under power policy 2015 and the schedule to this effect has not yet finalized." However, many of power projects are installed under 2015 power policy are under the CPEC umbrella and it will be somewhat difficult for the government to initiate talks to review the power purchase agreements (PPAs) with Chinese authorities.

"Yes, we have received the invitation from the government for meeting with IPPs installed under 1994 and 2002 power policies," Chairman of IPPAC (Independent Power Producers Advisory council) Khalid Mansoor confirmed.

"We will first listen to the government and then we will respond to the government demands as at the moment it is not possible to predict about the talks’ success or failure.” But the IPPs will, Mansoor said, ask the government to first ensure the payment of legitimate dues which have now swelled by over Rs600 billion and due to non-payment, the IPPs' liquidity crisis IPPs has increased manifold which will drive them towards default.

He said, Hubco is the only project installed even prior to the 1994 policy. According to the documents available with The News, IPPs installed under 1994 power policy include Lalpir Limited, Pak Gen Limited, Altern Energy Limited, Fauji Kabirwala Power Company, Gul Ahmad Energy, Habibullah Coastal Power, Japan Power Generation Limited, Kohinoor Energy Limited, Liberty Power Project, Rousch Pakistan Power Limited, Saba Power Company Limited, Southern Eletric Power Limited, TapalEnergy Limited, Uch Power Limited, Davis Energen Power Project, Kot Addu Power Company Limited.

And those installed under the power policy 2002 include Attock Gen Limited, Atlas Power Limited, Engro Energy Limited, Saif Power Limited, Halmore Power Generation Company Limited, Hub Power Project Narowal, Liberty Power Tech, Nishat Power Limited, Nishat Chunian Limited, Orient Power Company Limited, Foundation Power Company (Dharki Limited), Sapphire Electric Company Limited, Uch-II Power Project, Patrind Hydropower Project, and Gulpur Hydropower project.