ISLAMABAD: The federal cabinet has approved a settlement with five Independent Power Producers (IPPs) involving the voluntary termination of their contracts, following mutually agreed negotiations. According to details, the government will pay Rs72 billion to these IPPs within 90 days, while ensuring no unfair treatment in the process.
The settlement includes repatriation of dividends for foreign shareholders, with the Central Power Purchasing Agency (CPPA) already working on payments. Hub Power Company (HUBCO) is set to receive Rs36.5 billion while clearing its liabilities to PSO. Other IPPs, including Atlas, Saba, and Rousch Power, have also reached similar settlements, waiving interest and ending arbitration cases. This agreement also prevents a forensic audit of the IPPs.
Story by Khalid Mustafa
