The Supreme Court of Pakistan has taken notice of a petition admitted by the Independent Power Producers (IPPs) against the Federal Government for the continuous disregard of its obligation and inaction after four sovereign default notices. The bench comprising Justice Khilji Arif, Justice Jawad S Khwaja, headed by the Chief Justice of Pakistan, Justice Iftikhar Ahmed Chaudhry will hear the case on July 10, 2012.
The eight IPPs that earlier invoked the sovereign guarantee had filed the petition to initiate legal action domestically instead of approaching international arbitrators. Sources at the Independent Power Producers Advisory Council said that the IPPs are not raising their voices at international forums, even though the government has ignored four legal notices to fulfil its obligations, because the move will have serious repercussions and could lead to seizure of foreign business activities in the country.
The petition highlights the non-serious attitude of the Pakistani government which defaulted on its dues of Rs61.401 billion to IPPs, worsening the power crisis in the country. The breakdown of the total amount includes the capacity payments of Rs19.379 billion, energy payments of Rs37.846 billion and other payments of Rs4.176 billion.
Eight IPPs who initiated the petition include Liberty Tech, Orient Power, Atlas Power, Nishat Power, Nishat Chunian, Saif Power, Halmore Power, and Sapphire Electric for payment of the outstanding dues of Rs11.131 billion, Rs4.121 billion, Rs10.478 billion, Rs9.661 billion, Rs10.899 billion, Rs5.722 billion, Rs2.415 billion and Rs6.974 billion respectively.
Published in The Express Tribune, July 4th, 2012.
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