Moving towards new power purchase agreement with K-Electric: Hammad Azhar

ISLAMABAD: Federal Minister for Energy Hammad Azhar on Sunday announced that the federal government and K-Electric are swiftly moving towards signing a new power purchase agreement (PPA), ARY NEWS reported.

Taking to Twitter to make the announcement regarding talks with K-Electric, Hammad Azhar said that the federal government and K-Electric have agreed upon principles to resolve most of their long-standing disputes regarding additional supply, payment procedures and subsidy disbursements.

I am glad to report that the Federal Govt & KE have today agreed upon principles to resolve most of their long standing disputes regarding additional supply, payment procedures & subsidy disbursements. We will be swiftly moving towards signing a new PPA InshAllah.@KElectricPk

— Hammad Azhar (@Hammad_Azhar) May 16, 2021

“We will be swiftly moving towards signing a new PPA InshAllah,” he said as other IPPs nationwide have signed such agreements previously.

The Economic Coordination Committee (ECC) on May 05 gave the approval to pay the first installment of Rs89 billion to 35 Independent Power Producers (IPPs) out of a total of 47.

The ECC, which met in Islamabad with Finance Minister Shaukat Tarin in the chair, approved Rs89 billion for 35 IPPs, whereas payment to the remaining 12 IPPs may be withheld owing to NAB investigations.

The federal government has previously rejected an impression of default with IPPs over agreed payments to them as sources claimed that the delay was made after the National Accountability Bureau (NAB) is taking its time to give a nod to it.

According to sources within the government, the hue and cry raised by some of the independent power producers (IPPs) were aimed at pressuring the government and create an impression of default.

The officials who wished not to be named said that the payment would be cleared as soon as the NAB authorities would give clearance on the payment summary.