IPP’s withdraw sovereign guarantee encashment demand on government reassurances

The Independent Power Producers (IPP’s) have withdrawn the sovereign guarantee encashment demand on the undertaking of the government to resolve all outstanding issues linked to outstanding payments worth Rs48b out of an accumulated amount of Rs414b in March. This was done on account of a meeting last week with the Secretary of Ministry of Water and Power.

The formal notification pertaining to the withdrawal has been received by the Private Power and Infrastructure Board (PPIB). As per sources in the PPIB, payments of Rs30b have been made to fifty power producers and only Rs13.44b out of the above released amount has reached 13 IPP’s who had invoked sovereign guarantees to the tune of Rs48b earlier in March.

These IPP’s had served the final notices for invoking sovereign guarantees :LalPir Power (Rs4.552b), Pakgen Power (Rs7.778b), and Kohinoor Energy (2.306b); and those set up under the 2002 power policy – Liberty Power (Rs5.361b), Nishat Power (Rs4.881b), Attock Gen Ltd (Rs4.449b), Atlas Power (Rs4.555b), Nishat Chunian Power (Rs4.16b), Hubco Narowal (Rs5.024b), Saif Power (Rs1.503b), Sapphire Electric (Rs1.396b), Orient Power (Rs1.18b), and Halmore Power GCL (880m).

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