ISLAMABAD
The Economic Coordination Committee (ECC) of the Cabinet on Tuesday, July 25, 2017, approved the issuance of an unprecedented sovereign guarantee of Rs 193 billion to adjust financing for the power holding company and also approved concessions in the agreement of 660 kV Matiari-Lahore transmission line project.
An official source said the ECC approved the issuance of sovereign guarantee by the ministry of finance in respect of fresh syndicated term finance facilities for four projects of Rs 30.95 billion, Rs 40 billion, Rs 25 billion, Rs 15 billion for Power Holding (Private) Limited, to set off and adjust existing facilities.
ECC also approved another proposal to extend grace period in respect of term finance facility of Rs 82 billion for the Power Holding (Private) Limited. It also accorded approval of standard implementation agreement under Policy Framework for Private Sector Transmission Line Projects, 2015 and Project Specific Transmission Services Agreement.
An official statement said the ECC meeting was chaired by the Finance Minister Ishaq Dar.
During the meeting, the ECC considered and approved four proposals of the ministry of water and power for the issuance of new sovereign guarantees by the ministry of finance in respect of fresh syndicated term finance facilities for Power Holding (Private) Limited in order to set off and adjust existing facilities.
The ministry of finance will provide the government guarantee for the repayment of the loan as well as interest for the fresh facilities. In all four cases, the principal installment payments shall be deferred for a further period of 2 years from the date of execution of the fresh facilities.
The ECC also approved a proposal of the ministry of water and power, regarding an existing term finance facility for Power Holding (Private) Limited, to restructure the facility by extending the tenor of the facility from 7 years to 10 years, including an extension in grace period from 3 years to 6 years.
The ECC, after considering and deliberating upon another proposal of the ministry of water and power, approved the Standard Implementation Agreement (IA) for transmission line projects under Policy Framework for Private Sector Transmission Line Projects, 2015. As per the same proposal, the ECC also approved the TSA for HVDC Transmission Project (660 kV Matiari-Lahore).
