ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has reportedly approved Rs17 billion for RLNG-based power plants – Haveli Bahadur Shah, Bhikki, and Balloki –in order to meet their cash requirements.
Sources said that the Ministry of Energy submitted to the ECC meeting held on 22nd June while giving background that a meeting of the ECC on 31st March 2022 had approved Rs72.986 billion as a supplementary grant for the power sector in three equal monthly installments – April, May, and June 2022 – to be released at the beginning of each month.
The meeting also directed the Finance Division to ensure a budget allocation of Rs109.475 billion for the fiscal year 2023.
The meeting was informed that accordingly, payments were made to the Pakistan Atomic Energy Commission (PAEC), the Water and Power Development Authority (WAPDA), and the National Power Parks Management Company Limited (NPPMCL) in accordance with the decision of the ECC.
The ECC was informed that the Petroleum Division had approached the Power Division and that the CPPA-G had agreed to make payments of Rs98 billion and Rs119 billion in May and June, respectively but only Rs26 billion could be paid. The Petroleum Division requested to net off the dues of the SNGPL to avoid default on LNG/ RLNG payments and keep its supply chain intact.
The meeting was further informed that the RLNG power plants under the NPPMCL are included in the ongoing privatization program.
Privatization Commission vide letter dated 5th August 2021 highlighted that long outstanding receivables of the NPPMCL may impact the sentiments of potential lenders; therefore, payables to the NPPMCL need to be settled on priority. As of 14th June 2022, Rs213 billion are outstanding payables to public sector RLNG power plants –Haveli Bahadur Shah, Bhikki, and Balloki Power Plants – by the CPPA-G.
As per revised estimates, a saving of Rs17 billion is anticipated from Rs434 billion allocated for payment to the IPPs during the outgoing fiscal year.
The meeting was informed that budgeted subsidies under the head of the IPPs are Rs434 billion, which included Rs50 billion payment to the CPEC IPPs, Rs72 billion for government power plants, as well as, Rs134.78 billion second installment to the IPPs of 1994 and others, and first installment of 2002 and Rs64.09 billion for TNB Liberty.
After payment of Rs96.13 billion second installment of 2002 IPPs and TNB Liberty, a saving of Rs17 billion is anticipated; therefore, the ECC is requested for approval of and release of Rs17 billion during the current fiscal year from budgeted subsidies of the IPPs for payment to RLNG-based public power plants (Haveli Bahadur Shah, Bhikki and Balloki Power Plants) to meet the cash requirement.
Copyright Business Recorder, 2022