Independent Power Producers (IPPs) set to be investigated in the second phase of shifting from “take or pay” to “take and pay” mode are now protesting over the suspension of payments by the Central Power Purchasing Agency (CPPA-G) for the past two weeks.
According to news reports, the government is preparing to summon 18 IPPs operating under the 1994 and 2002 policies to renegotiate their Power Purchase Agreements (PPAs).
However, one of these IPPs, Laraib Energy Limited, has raised concerns in a letter to the CPPA-G, stating it urgently requires the release of Rs 2.39 billion to service foreign debt from lenders including the Asian Development Bank (ADB), International Financial Corporation (IFC), and the Islamic Development Bank (IsDB), among others.
According to Laraib Energy, the company has only received Rs 875 million following a request on September 19, 2024, leaving a shortfall of Rs 1.515 billion. This payment delay risks the company defaulting on its debt servicing, which is due on November 5, 2024.
Laraib Energy warned that a default would not only endanger its operations but could also damage Pakistan’s financial credibility. The company has called for immediate action to prevent this potential crisis and ensure the stability of its foreign loan obligations.
