No MoUs till payment of dues, IPPs tell govt

ISLAMABAD: In a new development, Independent Power Producers (IPPs) that signed MoUs with the government to mutually alter the Power Purchase Agreements (PPAs) have refused to sign final agreements unless and until the government clears their dues which run into Rs300-400 billion.

“IPPs are not ready for the timeframe the government intends to give for payment of arrears in installments rather they want the clearance of the dues in one go. IPPs, however, may agree on payment of 90 percent of the total dues of Rs300-400 billion that the government needs to pay,” a senior official privy to development told The News.

“IPPs have stated in plain words to the government IPPs committee headed by former federal secretary Babar Yaqoob.” However, the government that is running short of cash is interested to provide to IPPs the timeframe for payment of dues in installment which is not acceptable to IPPs.”

Into, the dues of the power houses including state owned and private plants have swelled by over Rs650 billion out of which IPPs (private entities) are needed to be paid up to Rs400 billion.

The official said that there are some thermal power plants which have not yet signed MoUs including the private hydropower projects (HPPs). There are three private hydropower projects which are operational having the capacity to generate 350MW.