ISLAMABAD: The government is reportedly receiving concerns from various foreign governments over perceived one-sided agreements with certain Independent Power Producers (IPPs), sources reveal.
According to sources, the German government has conveyed the reservations of Rousch Power Project Limited (RPPL), a company owned by the family of former Commerce Minister Abdul Razak Dawood. Under the Negotiated Settlement Agreement (NSA), it was agreed that: (i) as a Build-Own-Operate-Transfer (BOOT) project, RPPL will transfer its power complex to Pakistan or a designated entity for one USD, payable in PKR at the current exchange rate; (ii) RPPL will receive Rs 5.5 billion for the OFME period due to early termination; and (iii) an additional Rs 2.8 billion will be paid for preserving the complex until its transfer.
Georg Klussmann, Head of Division for Pakistan at Germany’s Federal Foreign Office, communicated to Pakistan’s Embassy in Germany that Berlin is concerned about the impact of these negotiations on German enterprises and broader Pakistan-German business relations. Siemens, a shareholder in RPPL, considers the agreement unacceptable for foreign investors but expressed willingness to negotiate in good faith. Pakistan’s Charge d’Affaires in Berlin has proposed further discussions to reach an amicable resolution, sources noted.
Story by Mushtaq Ghumman
