PHPL loan and markup issues: CCoE directs PD to consult SAPM, Finance Division

ISLAMABAD: The Cabinet Committee on Energy (CCoE) has directed the Power Division to consult the Finance Division and Special Assistant to the Prime Minister on Revenue to resolve the issues relating to PHPL loan and markup, official sources told Business Recorder.

On January 14, 2021, the Power Division briefed the CCoE presided over by the Minister for Planning, Development and Special Initiatives, Asad Umar, on the status of circular debt of the power sector, and the following aspects were discussed in detail: (I) comparison of current year and last year figures of circular debt, projected figures of Circular Debt up to June 2021, breakup of circular debt (operation and non-operational part) and paid/unpaid budgeted/unbudgeted subsidy of 2019-20 and 2020-21;(ii) negotiations with the 1PPs, RoE reduction and GENCOs closure and; (iii) outstanding issues of power sector (Agri-Balochistan, AJ&K issues, loan and IPPs markup and K-Electric issues).

During the ensuing discussion, the forum noted the details with a focus on expediting the finalization of ongoing negotiations with the IPPs, finalization of the issue regarding solarization of tubewells in Balochistan in consultation with the Provincial Government, IPPs markup & loan issues and matters of power related to AJ&K Government.

The Cabinet Committee on Energy (CCoE) considered the summary of January 13, 2021 submitted by the Power Division regarding "Circular Debt Management Plan - progress" and directed Power Division to; (i) consult Finance Division and Special Assistant to the Prime Minister on Revenue to resolve the issues relating to PHPL loan and markup and submit a summary to the ECC in its next meeting;(ii) propose way forward on the issue of solarization of agricultural tube-wells in Balochistan, prior to the meeting between the Prime Minister and Chief Minister Balochistan; (iii) submit a summary on AJ&K issues to the ECC in its next meeting and; (iv) examine the report of the Senate Standing Committee on Power Division and apprise the CCoE of its response to the recommendations of the report.

Copyright Business Recorder, 2021