Kapco to receive Rs 100b, Hubco Rs 75b

Kot Addu Power Company (Kapco) will receive Rs 100 billion from the government following a revised deal economic coordination company (ECC) approved on Monday.

However, Hubco will receive Rs 75 billion outstandings.

The Cabinet Committee on Energy on Monday approved paying Rs 403 billion to Independent Power Producers (IPPs). Nishat Power will receive Rs 25 billion.

A meeting held on Monday approved Payment Mechanism and Agreements with Independent Producers (IPPs).

The Government of Pakistan constituted a Committee in August 2019 to look into the Power Sector issues. It includes purportedly higher profits made by the IPPs. Resultantly, it also recommended a way forward. The Committee presented its report in March 2020, highlight issues faced across the Power Sector.

https://newztodays.com/hefty-profitsinquiry-commission-initiates-probe-against-ipps/

In pursuance of these recommendations and the decision of the Cabinet Committee on Energy, the Federal Government constituted another Negotiation Committee to negotiate with the IPPs.

Following successive rounds of discussion with the IPPs and other Power Sector stakeholders, the Negotiation Committee recommended signing Memoranda of Understanding (MoUs) with 47 IPPs.

The Negotiation Committee submitted its complete report to CCoE, which approved another Committee (Implementation Committee) constitution on 24 September 2020. Its mandate was to ensure the implementation of the MoUs and the recommendations in the report.