ISLAMABAD: Despite the Task Force on Energy’s success in terminating or amending contracts with 13 Independent Power Producers (IPPs), negotiations with the remaining 18 IPPs from the 1994 and 2002 policies remain deadlocked, as both sides contest each other’s financial figures, sources revealed.
The Task Force, chaired by Minister for Power Sardar Awais Khan Leghari and comprising key officials from NEPRA, CPPA-G, and PPIB, has been engaging with IPP representatives, yet disagreements over government-provided statistics have strained discussions. Some IPPs have objected to the shift from “take or pay” to “take and pay” contracts, even expressing willingness to terminate contracts if certain conditions are met.
Key IPPs like Pakgen Power, Nishat Power, and Hubco Narowal have outlined demands for any contract terminations, including full payment of outstanding dues, freedom to sell power to private buyers, and uninterrupted LNG supply from SNGPL.
The government estimates it has already saved Rs. 412 billion through early terminations and projects further savings of Rs. 80-100 billion from revised contracts with bagasse-based IPPs. The Task Force aims to finalize negotiations by week’s end, though some IPPs claim they have yet to be approached for discussions.
Story by Mushtaq Ghumman
