ISLAMABAD: The Cabinet Committee on Transport and Logistics (CCoTL), headed by Minister for Maritime Affairs Ali Zaidi, has directed Petroleum Division to stop capacity payment charges to Pakistan Gas Port Consortium Limited (PGPCL) for allegedly not implementing their decisions, well informed sources told Business Recorder.
On October 4, 2021, Ministry of Maritime Affairs proposed Pakistan Gas Port Consortium Limited be directed to undertake capital dredging of berthing basin as per report of M/s DNV.GL (Germany) by the 1st week of November 2021; and the Port Qasim Authority (PQA) to be directed to recover the amount of Rs921,591,597 from the PGPCL by the 1st week of November, 2021.
The Petroleum Division informed the CCoTL that the PGPCL will implement the decision as proposed by the Maritime Affairs ministry. However, the payment of PQA dues has been linked by PGPCL subject to the settlement of account with PPL.
PQA stated that it is a different entity and the stance of PGPCL to link it with settlement of account with PLL is a delaying tactic.
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It was further noted by Petroleum Division that the PGPCL has gone into arbitration in London and sought a stay order from Islamabad High Court (IHC). The forum agreed that all efforts should be made to get vacated the stay order sought by the PGPCL. Furthermore, it was agreed to recommend to the Petroleum Division to stop further capacity payment charges to the PGPCL in case of non-compliance of the decision taken on the summary.
Petroleum Division will seek legal opinion from the Law & Justice Division on implications of stopping capacity payment charges to PGPCL by the GoP and share the progress through summary for consideration of the CCoTL in its next meeting.
Copyright Business Recorder, 2021
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