The recent deal of the government with the independent power producers (IPPs) can potentially save Rs 836 billion in the longer run if the deal becomes successful.
According to the details of the agreement the government has struck a deal with 47 IPPs in which the government has to clear overdue receivables of IPPs of about Rs 400 billion in one go and in return it will save Rs 836 billion based on 5 per cent rupee depreciation per annum in 28 years. A committee was constituted under the chairmanship of Babar Yagoob Fateh Muhammad, Chairman Federal Land Commission to negotiate with IPPs.
The committee after successive rounds of discussions with IPPs and other stakeholders like Power Division, CPPA-G. NTDC and PPIB signed a Memoranda of Understanding (MoUs).
The following new seven-member committee has been constituted to take further actions on the recommendations and action plan: (i) Minister for Energy; (ii) Babar Yagoob Fateh Muhammad, Chairman, Federal Land Commission of Pakistan- Member; (iii) Special Assistant to the Prime Minister on Power-Member; (iv) Secretary Power Division-Member; (v) Secretary Finance-Member; (vi) Barrister Qasim Wadud- Member; and (vii) CEO, CPPA-G- Member Secretary.
