The committee also revived an implementation committee led by the finance minister with the addition of a representative from law division which had concluded agreements with about 47 IPPs in February this year. AFP/File
ISLAMABAD: Reversing earlier decisions and agreements, the government on Thursday decided to ‘re-negotiate’ once again power purchase agreements (PPA) with about a dozen independent power producers (IPPs) set up under Policy for Power Generation 2002 to recover ‘excess payments’ they had secured from the government.
The Cabinet Committee on Energy (CCoE), presided over by Planning Minister Asad Umar, took this decision on the advice of the National Accountability Bureau (NAB) for recovery of about Rs52bn including about Rs8.4bn from Nishat Chunian project of Mansha Group. The committee also revived an implementation committee led by the finance minister with the addition of a representative from law division which had concluded agreements with about 47 IP
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January 23, 2021
ISLAMABAD: As many as 19 Independent Power Producers IPPs out of 47 have agreed to the legally binding contracts with the government after six more IPPs initialed the Amended Power Purchase Agreements on Thursday. However, 13 IPPs led by Mansha Group is seeking resolution of excess profits of Rs55 billion through experts’ panel.
Three leading IPPs: Orient Power, Sapphire and Halmore installed under the 2002 power policy led by SAPM on Petroleum Nadeem Babar, who has majority shares in Orient Power and Oursun, had first initialed the amended PPAs. They prefer NEPRA to settle the contentious issue. “The signing of the agreement between government officials and IPPs will be held after approval by the federal cabinet and their respective boards. Earlier, solar and bagasse based power plants signed amended PPAs.” Similarly six more IPPs including Saba, Lalpeer, PakGen, Engro, Atlas, Saif installed under 1994 and 2002 power policy initialed the Mast