ISLAMABAD: In a bid clear the outstanding dues of 46 independent power producers (IPPs), the Economic Coordination Committee (ECC) of the Cabinet has approved a proposed payment mechanism under which Rs161 billion would be released for the IPPs immediately.
The ECC meeting, held with Finance Minister Dr Abdul Hafeez Shaikh in the chair, while approving the summary for immediate release of Rs161 billion to help ease pressure on companies and reduce circular debt, directed the officials concerned to present the same before federal cabinet for final approval.
Planning, Development and Special Initiatives Minister Asad Umar, Energy Minister Omar Ayub Khan, Adviser to PM on Institutional Reforms and Austerity Dr Ishrat Hussain, SAPM on Revenue Dr Waqar Masood, SAPM on Power Tabish Gauhar, State Bank Governor Reza Baqir and FBR chairman were also present on the occasion.
The energy secretary had briefed the ECC about the detailed report submitted by the Implementation Committee regarding the conversion of memorandums of understanding (MoUs) into agreements with IPPs to devise a payment mechanism for clearance of outstanding dues.
According to payment mechanism, a payment of Rs403 billion would be made to the IPPs in two installments; first will be 40pc of said payables — to be paid 1/3rd in cash, 1/3rd in Sukuk and 1/3rd in PIB Bonds at floating rate of T-Bills+ 70 bps, while the remaining 60pc amount would be paid within six months of the first installment.
As per parity-wise payables to IPPs, total outstanding payables of 46 IPPs, including HUBCO and KAPCO, as on 30th Nov 2020, were Rs403,098 billion. Similarly, total payables of IPPs established under Power Policy 1994 were Rs57,210 million; payables of IPPs under 2002 Power Policy were Rs145,702 million; while total dues of renewable plants were Rs43,203 million.
According to documents, the outstanding payables of HUBCO (residual fuel oil) were Rs57,982 million, Kot Addu Power Company (gas/RLNG & RFO) Rs99,002 million, Rousch (gas/RLNG) Rs14,223 million, Fauji (gas/RLNG) Rs4,396 million, Pak Gen Power (RFO) Rs16,337 million, Lalpir Power (RFO) Rs15,483 million, K-ELectric (RFO) Rs4,974 million, Saba (RFO) Rs1,798 million, Engro Power (gas) Rs8,147 million, Foundation Power (gas) Rs10,709 million, Orient Power (gas/RLNG/HSD) Rs7,220 million, Saif Power (gas/RLNG/HSD) Rs9,507 million, Saphire Electric (gas/RLNG/HSD) Rs9,041 million, Halmore Power (Gas/RLNG/HSD) Rs8,654 million, AGL Power (RFO) Rs10,518 million, HUBCO Norowal (RFO) Rs16,163 million, Atlas Power (RFO) Rs16,099 million, Nishat Power (RFO) Rs14,252 million, Nishat Chunian (RFO) Rs14,619 million, Liberty Tech (RFO) Rs20,772 million, FFC Energy (Wind) Rs3,454 million, Foundation Energy-I( Wind) Rs3,871 million, Foundation Energy-II (Wind) Rs3,669 million, RYK Mills (Bagasse) Rs524 million, Chiniot Power (Bagasse) Rs631 million, Yunus Energy (Wind) Rs3,087 million, Metro Power (Wind) Rs3,180 million, Tenaga Energy (Wind) Rs2,389 million, Master Energy (Wind) Rs2,543 million, ACT (Wind) Rs1,631 million, Gul Ahmed (Wind) Rs2,886 million, Hawa Energy (Wind) Rs2,095 million, Jhimpar Power (Wind) Rs1,777 million, Harappa (Solar) Rs159 million, AJ Power (Solar) Rs67 million, Artistic Energy (Wind) Rs2,270 million, Tricon Boston Consulting (Wind( (A) Rs1,760 million, Tricon Boston Consulting (Wind) (B) Rs1, 460 million, Tricon Boston Consulting (Wind) (C) Rs1,476 million, JDW Sugar Mills Unit-II (Bagasse) Rs1,161 million, JDW Sugar Mills Unit-III (Bagasse) Rs155 million, Thal Industries Corporation (Bagasse) Rs112 million, Al Moiz Industries Limited (Baggase) Rs23 million, and Chanar Energy Limited (Bagass) Rs8 million.
Meanwhile, the FBR presented a summary regarding procurement of video analytics surveillance (VAS) system for proper monitoring of the production and sale of sugar in compliance with the directive of the prime minister. The ECC approved an allocation of Rs350 million as a technical supplementary grant for installation of the most optimal VAS solution at the sugar mills’ premises during the current crushing season as requested by the FBR.
