ISLAMABAD: Special Assistant to the Prime Minister on Power, Tabish Gohar with more powers, talks with IOPs on conversion of Memorandum of Understanding into Amended Power Purchase Agreements (PPAs) Has moved to
The team negotiating with the IPPs and the government is ready to launch the revised PPA, next week, however, the appropriate signatures will come when the BODs of the IPPs will ratify them and the federal The cabinet will also approve the insights made by the government team, a senior official of the Petroleum Division told The News. Now the SPM regarding Petroleum Nadeem Babar will not play any role in negotiating IPPs and power sector issues as it will be led by Tabish Gohar under the new orders of the Prime Minister’s Office.
Nadeem Babar, who has a majority stake in Orient Power (Thermal Power Plants) and Orson (Solar Plant), was heavily involved in talks with the first IPPs, which bothered Tabish the most. Therefore, the SAPM of Power had decided to resign, however, the Prime Minister did not accept his resignation and asked Tabish to continue his services with more powers and SAPM of Petroleum Nadeem Babar There will be no interference from
Under the new scenario, the SAPM Memorandum of Understanding with the Power and Secretary Power Division was closely engaged with the IPP and the two sides agreed to start agreements next week. After that, the formal signing will take place once the power policies under 1994, 2002, which included Hubco and Capco, KBDDs go ahead and the federal government approves the initial plans through the government committee. Approved.
In response to a question, the power SAPM said that the formal signing of IPPs would take place before the deadline of February 12, 2021 and that the government is currently extending the negotiating committee and power divisions from IPPs. No thoughts for. The MoU expires on February 12, 2021. The official said that there was no change in the MoUs signed by 47 IPPs and the government committee in August 2020, which would pave the way for a profit of Rs 386 billion in the next 10-83 years. 12 years. He said that the MoUs have been approved by the federal government, which cannot be changed by anyone.
However, Gohar said six IPPs headed by the Mansha Group and the Attorney General’s Office (AGO) are currently working on forming a panel of experts. The expert panel will be ordered to resolve the issue of alleged overpayment of Rs 3 billion within six months. He mentioned that the MoUs stated that billions of rupees were marked as additional payments which were illegally observed by some IPPs and if IPPs NEPRA will be able to be stable in this matter if it has pulled out more pockets.
He said that the attempt to resolve the disputed amount of Rs. 5.30 billion from the panel of experts instead of NEPRA could be technically deviated from the MoUs to some extent but it was not a deviation in part. Since the IPPs did not trust NEPRA, which the government had asked them to work diligently on overpayments of over Rs 353 billion, the IPPs were of the view that NEPRA was already a court of law on this particular issue of the party. I’m ready to argue. He was of the view that under the PPA, NEPRA is not a forum for resolving such financial disputes, but the arbitration tribunal is a forum for deciding such matters and it also provides for arbitration. An expert panel can decide such matters before transferring them to court. “Therefore, the government has agreed to form a panel of IPPs or experts to resolve the issue within six months, which would be acceptable to IPPs.”
Under the signed MoU, the government, with the consent of the PPPs, has succeeded in introducing material changes in the existing PPAs, which will yield a reasonable profit of Rs 386 billion over the next 10-12 years. In addition to the 15% profit offered to IPPs under previous power policies, the basic clause of the dollar agreement has been changed to 17% return rate with the Pakistan Rupee Index. And IPPs will be paid a profit of Rs 148 per dollar. However, the rate of return of foreign-funded IPPs has been reduced from 15% to 12% with the US dollar index.
According to the MoU, tech or pay mode contracts will be converted into tech and pay contracts only when a competitive market system, in which multiple buyers of electricity are generated through IPPs, is established. Are and become operational. However, for oil-fired power plants, any savings in fuel will also be shared with the government. But all is possible, the official said, only if the MoUs are converted into formally amended contracts. Under the MoU, the IPPs stipulated that they would sign the amended agreements only when their obligations were approved.
On the issue of payment of Rs 453 billion to IPPs, he said that the IPPs wanted the government to pay 50 per cent in cash within six months on the occasion of the formal signing ceremony of the amendment. Eliminate all dues from the government. PPA (Master Agreement) and the balance should be paid in commercial bonds after six months. The government wants to offload debts over a period of one year by paying one-third in cash at the time of formal signing and the other in two installments every six months in the form of PIB or tradable bonds. “Out of Rs 453 billion, Rs 533 billion is disputed which will be resolved by a panel of experts.”