ISLAMABAD: The federal cabinet’s economic coordination committee (ECC), during its meeting next week, is likely to approve the payment of Rs85 billion to Independent Power Plants (IPPs).
According to sources, the Ministry of Energy sent a summary to the committee in this regard after receiving a clearance letter from the National Accountability Bureau (NAB).
“Tariff of these power companies, which will be reduced after the government clears 40 per cent of their dues in the first instalment, will benefit the country with approximately Rs60 billion per annum,” said sources.
However, payments will not be made to power producers under investigation by NAB Lahore. The power division will only make the promised payments after NAB gives the companies a clean chit otherwise the ministry itself would be investigated.
Sources said that the payments had become complex for both the power division and finance division as NAB was not allowing them to begin implementing the agreements while the deadline for the payment under the new agreement was March 29 as the federal government had promised to clear payments within 30 business days from February 11.
It is pertinent to mention here that the power division believes that any step taken in haste may create problems for the concerned officials dealing with the payments and are ensuring that all possible legal requirements are fulfilled.
On the other hand, it is estimated that if the pending dues are not given, IPPs which were established under the power generation policy of 1994, will not be able to ensure fuel storage for their plants.
