ISLAMABAD: Prime Minister Shehbaz Sharif has appointed Syed Tariq Fatemi, Special Assistant on Foreign Affairs, to address grievances raised by Siemens, a German partner in Rousch Pakistan Power Limited (RPPL), regarding a new deal negotiated by the Energy Task Force led by Federal Power Minister Sardar Awais Khan Leghari.
The dispute surfaced during recent Pakistan-EU talks, with the German Embassy raising concerns in a letter to the Power Minister. Siemens, which has been a key player in Pakistan’s power sector since the 1990s, expressed dissatisfaction with the settlement terms proposed for RPPL, an Independent Power Producer operating under agreements valid until 2031.
Key issues include the lack of guarantees for transferring settlement funds and dividends to foreign accounts nominated by Siemens. The German Embassy warned that these unresolved concerns could undermine the confidence of foreign investors and strain Pakistan-German business relations.
Siemens indicated its willingness to consider the settlement if the Ministry of Finance and the Central Bank provide guarantees for fund transfers, despite the settlement value being significantly lower than the plant’s real worth.
The Negotiated Settlement Agreement (NSA) offers:
Transfer of the RPPL complex to the Government of Pakistan for $1 in equivalent PKR.
Payment of Rs5.5 billion for early termination.
Rs2.8 billion for the plant’s preservation until its transfer.
The German government, through Georg Klussmann, Head of Division for Pakistan at the German Federal Foreign Office, urged Pakistan to address the matter to safeguard bilateral economic relations. Pakistan’s Charge d’Affaires in Berlin has also recommended further dialogue to achieve a resolution acceptable to all parties.
This development underscores the need for balanced negotiations to maintain investor trust and foster future international collaborations.
Story by Mushtaq Ghumman
