ISLAMABAD: Independent Power Producers (IPPs) set to face scrutiny in the second phase of shifting from the “take or pay” to the “take and pay” model are expressing frustration over a two-week payment stoppage by the Central Power Purchasing Agency (CPPA-G). Sources informed Business Recorder that 18 IPPs under the 1994 and 2002 policies will soon receive notices for renegotiating their Power Purchase Agreements (PPAs).
One of the affected companies, Laraib Energy Limited, has formally requested CPPA-G to release Rs 2.390 billion to meet debt servicing obligations to foreign lenders including the Asian Development Bank (ADB) and International Financial Corporation (IFC). The company warned that continued delays could lead to a default, jeopardizing both the company’s stability and Pakistan’s global financial reputation.
Story by Mushtaq Ghumman
