30-day deadline: Nine IPPs serve another notice seeking payment
PEPCO owes independent power producers Rs45.95b .
KARACHI:
After serving a 30-day notice on the government for the release of Rs31.16 billion dues on August 25, nine independent power producers (IPPs) served on the government another notice on September 10 for Rs14.70 billion, which became due on September 1, taking their total dues to Rs45.95 billion.
According to a press release on Monday, the IPPs will invoke sovereign guarantees of the government of Pakistan if the payments are not made within 30 days.
The statement said that Pakistan Electric Power Company (Pepco) not only failed to clear the dues, but also penalised the IPPs for serving the notice, further deepening the crisis.
It said that the nine IPPs were being denied even normal, smaller payments that other IPPs received regularly because they had threatened to call sovereign guarantees.
It added that the notices were in accordance with the agreements the IPPs signed with Pepco and the government of Pakistan. A few months back, four out of the nine IPPs had invoked sovereign guarantees and the government then arranged payments to them.
The statement quoted the director of one of the nine IPPs as saying that Pepco defaulted on payments frequently and as a result the sovereign guarantees had to be called, which put the government in an awkward position internationally.
“This time around, it seems that vested interests have made things worse by advising Pepco to stop daily payments, which will eventually result in closure of these plants,” the statement quoted the director as saying.
According to the statement, Pepco owes Atlas Power Company Rs7.18 billion, Attock Generation Rs9.61 billion, Liberty Power Rs6.74 billion, Nishat Chunian Power Rs6.6 billion, Orient Power Rs3.8 billion, Nishat Power Rs6 billion, Sapphire Electric Company Rs1.48 billion, Halmore Power Rs1.2 billion and Saif Power Rs3 billion.
Published in The Express Tribune, September 13th, 2011.
After serving a 30-day notice on the government for the release of Rs31.16 billion dues on August 25, nine independent power producers (IPPs) served on the government another notice on September 10 for Rs14.70 billion, which became due on September 1, taking their total dues to Rs45.95 billion.
According to a press release on Monday, the IPPs will invoke sovereign guarantees of the government of Pakistan if the payments are not made within 30 days.
The statement said that Pakistan Electric Power Company (Pepco) not only failed to clear the dues, but also penalised the IPPs for serving the notice, further deepening the crisis.
It said that the nine IPPs were being denied even normal, smaller payments that other IPPs received regularly because they had threatened to call sovereign guarantees.
It added that the notices were in accordance with the agreements the IPPs signed with Pepco and the government of Pakistan. A few months back, four out of the nine IPPs had invoked sovereign guarantees and the government then arranged payments to them.
The statement quoted the director of one of the nine IPPs as saying that Pepco defaulted on payments frequently and as a result the sovereign guarantees had to be called, which put the government in an awkward position internationally.
“This time around, it seems that vested interests have made things worse by advising Pepco to stop daily payments, which will eventually result in closure of these plants,” the statement quoted the director as saying.
According to the statement, Pepco owes Atlas Power Company Rs7.18 billion, Attock Generation Rs9.61 billion, Liberty Power Rs6.74 billion, Nishat Chunian Power Rs6.6 billion, Orient Power Rs3.8 billion, Nishat Power Rs6 billion, Sapphire Electric Company Rs1.48 billion, Halmore Power Rs1.2 billion and Saif Power Rs3 billion.
Published in The Express Tribune, September 13th, 2011.