PPIB interested in MoU amendments with Saudi Arabia

The Private Power & Infrastructure Board (PPIB) has expressed interest in the alteration of draft framework agreement with Saudi Arabia to proceed further on renewable energy projects.

Pakistan embassy in Riyadh, held discussions with Saudi Ministry of Energy, suggesting to Islamabad that “Inter-Governmental Commercial Transaction Act 2022” should be utilized in the framework agreement along with an official amendment in the 2019 MoU and allowance for formation of a joint team to monitor the implementation of the MoU.

Managing Director, PPIB, Shah Jahan Mirza, in response to this request, replied writing that the Government of Pakistan and Government of Saudi Arabia signed an MoU in 2019, for investment in the PPIB on renewable energy sector of Pakistan. Whereas the Inter-Governmental Commercial Transactions Act 2022 which is the basis for provision of the legal framework for the development of projects under the Government-to-Government (G2G) mode, was enacted upon in 2022. It is required that an MoU or a G2G Framework Agreement be executed between the two governments to facilitate the development of such projects under the provisions of the IGCTA.

A new Framework Agreement under IGCTA for the development of projects on G2G mode was prepared and shared with the Saudi side for their review, finalization, and execution in order to proceed further with the implementation of RE projects on G2G mode. This decision was taken considering the foregoing and the fact that the earlier MoU cannot be utilized as the legal basis for the development of RE projects under the G2G mode.

The PPIB further explained that the Government of Pakistan will remain flexible and welcome any necessary adjustments to the draft Framework Agreement shared with the Saudi side as per the requirement, to ensure the fulfilment of the requirements of both parties.

PPIB hopes that such collaborative efforts will result in the benefit of both the parties involved and strengthen the bonds between both the countries.