ECC approve payment of Rs 399b to IPPs
The Economic Coordination Committee (ECC) of the Cabinet on Monday approved to pay Rs 399 billion to Independent Power Producers (IPPs).
Federal Minister for Finance and Revenue, Dr. Abdul Hafeez Shaikh, chaired the Economic Coordination Committee (ECC) meeting of the Cabinet.
Federal Minister for Planning, Development and Special Initiatives Asad Umar, Federal Minister for Energy Omar Ayub Khan, Adviser to the PM on Institutional Reforms and Austerity Dr. Ishrat Hussain, SAPM on Revenue Dr. Waqar Masood, SAPM on Power Tabish Gauhar, Governor State Bank Reza Baqir, Chairman FBR and Chairman Board of Investment participated in the meeting.
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Secretary, Ministry of Energy briefed the ECC about the Implementation Committee’s detailed report. The secretary also briefed regarding the conversion of MOUs into Agreements with IPPs. This will also help to devise a payment mechanism for clearing outstanding payables.
The Implementation Committee also agreed to the payment mechanism with the 46 IPPs. The Committee also agreed to clear the outstanding dues as of November 30, 2020.
The ECC commended the efforts of the Implementation Committee and acknowledged the input of all concerned ministries. This includes Federal Ministers for Energy and Planning, SAPM on Power, Finance Division, Chairman Federal Land Commission, SAPM FBR, and Governor SBP. They all worked out a viable payment mechanism with the IPPs. Therefore, they will eventually save approximately Rs—836 billion for the Government over the projects’ average life.
The ECC approved the Implementation Committee report with a direction to present the same before Cabinet for final approval.
FBRpresented a summary regarding the procurement of the Video Analytics Surveillance system (VAS) to properly monitor the production and sale of sugar in compliance with the prime minister’s directive.
The ECC also approved an allocation of Rs 350 million as a Technical Supplementary Grant. This will help FBR install the most optimal VAS solution at the sugar mills’ premises during the current crushing season.
