Federal Minister for Energy Hammad Azhar on Sunday announced that the federal government and K-Electric are moving towards signing a new power purchase agreement (PPA).
Taking to Twitter, Hammad Azhar said that the federal government and KE have agreed upon principles to resolve most of their long-standing disputes regarding additional supply, payment procedures and subsidy disbursements.
I am glad to report that the Federal Govt & KE have today agreed upon principles to resolve most of their long standing disputes regarding additional supply, payment procedures & subsidy disbursements. We will be swiftly moving towards signing a new PPA InshAllah.@KElectricPk
— Hammad Azhar (@Hammad_Azhar) May 16, 2021
“We will be swiftly moving towards signing a new PPA InshAllah,” he said as other IPPs nationwide have signed such agreements previously.
Earlier on may 5, the Economic Coordination Committee (ECC) gave the approval to pay the first installment of Rs89 billion to 35 Independent Power Producers (IPPs) out of a total of 47.
The ECC, which met in Islamabad with Finance Minister Shaukat Tarin in the chair, approved Rs89 billion for 35 IPPs, whereas payment to the remaining 12 IPPs may be withheld owing to NAB investigations.