Dollar based agreements cancelled with eight bagasse power plants

ISLAMABAD: Five IPPs have been closed after negotiations, Secretary Power Division informed the Senate standing committee for energy on Monday.

The power division official was briefing the Senate body chaired by Senator Mohsin Aziz over review agreements with the Independent Power Producers (IPPs).

“The closure of these IPPs will save 411 billion rupees of the national exchequer,” the official said.

The energy official also informed that the dollar-based contracts have been cancelled with eight bagasse power generation plants and review agreements have been finalized with them, which will save Rs 238 billion to the state coffers.

The Senate standing committee decided to debate over Senator Shibli Faraz’s report over the power sector’s circular debt. Shibli Faraz said in presence of the mountain of circular debt in power sector how could the electricity becomes cheaper. “Exports won’t increase when the electricity will be expensive,” he said.