Hub Power Company signs MoU with govt’s IPPs negotiation committee

The Hub Power Company Limited (HUBC) on Monday notified the Pakistan Stock Exchange (PSX) that the company and a committee for negotiations with Independent Power Producers (IPPs) formed by the federal government have executed a Memorandum of Understanding (MoU).

According to the MoU, fixed Operations and Maintenance (O&M) costs will be reduced by 11 per cent while the existing arrangement of US dollar exchange rate and US Consumer Price Index (CPI) on the fixed O&M will remain unchanged.

Under the MoU, the mechanism for payment of outstanding receivables to HUBC will be reflected in the final agreement which will be signed later.

Moreover, the terms of the MoU are subject to the approval of the HUBC Board of Directors and the federal cabinet, prior to the execution of a final agreement between the parties.

According to reports, the MoU will expire in six months, however, major progress is expected in two to three months. After the initial period, a report will be submitted to the prime minister, after which the MoU will be transformed into an agreement with the approval of the cabinet.

5 COMMENTS

  1. It’s just an eye wash & clearly a conflict of interest with backing of World Bank – IMF & their hunch men sitting in the government as an advisors. Prime Minister is not a technical person.

    • So far in the past, we’ve managed to make s PM me of the worst agreements in the energy sector’s history without the so called ‘henchmen of WB and IMF’ and we both know where they have brought Pakistan to. Therefore, I’m willing to take my chances with these ‘henchmen’, even if there is any truth to this, because the last 30 years have been nothing but filled with bad and selfish policies.

  2. So easy to reject anything as conspiracy of International organizations and their purported “henchmen”! These henchmen are far more patriotic and doing what’s good for country than the Thugs of Shareef and Bhutto/Zardari dynasties.

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