The independent power producers (IPPs) have decided to temporarily suspend the sovereign guarantee call notices served on the government, as the Ministry of Water and Power is engaged in talks with them in a bid to find a solution to the issue of overdue payments.
“With this move, the IPPs hope to provide the government with enough time to take appropriate measures and avoid going into sovereign default,” said the IPPs Advisory Council in a statement. “The positive engagement by the Ministry of Water and Power has been welcomed and appreciated, and the IPPs are determined to work constructively with the ministry in order to uphold national interests.”
A few days ago, advertisements titled “Government on the verge of sovereign default” were published on behalf of the IPPs. Ten IPPs notified the government that they were invoking sovereign guarantees because of persistent default on payments by the National Transmission and Dispatch Company and the Water and Power Development Authority.
Published in The Express Tribune, December 12th, 2014.
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