AVN 68.28 Increased By ▲ 0.53 (0.78%)
BAFL 31.09 Increased By ▲ 0.11 (0.36%)
BOP 4.93 Increased By ▲ 0.12 (2.49%)
CNERGY 3.88 Increased By ▲ 0.12 (3.19%)
DFML 14.00 Increased By ▲ 0.02 (0.14%)
DGKC 42.77 Increased By ▲ 1.77 (4.32%)
EPCL 47.85 Increased By ▲ 0.80 (1.7%)
FCCL 12.22 Increased By ▲ 0.57 (4.89%)
FFL 5.28 Increased By ▲ 0.12 (2.33%)
FLYNG 6.26 Increased By ▲ 0.32 (5.39%)
GGL 11.09 Decreased By ▼ -0.20 (-1.77%)
HUBC 66.84 Decreased By ▼ -1.11 (-1.63%)
HUMNL 5.84 Increased By ▲ 0.14 (2.46%)
KAPCO 28.03 Decreased By ▼ -0.01 (-0.04%)
KEL 2.38 Increased By ▲ 0.11 (4.85%)
LOTCHEM 26.42 Increased By ▲ 0.22 (0.84%)
MLCF 22.44 Increased By ▲ 0.78 (3.6%)
NETSOL 87.60 Increased By ▲ 1.15 (1.33%)
OGDC 105.95 Increased By ▲ 5.46 (5.43%)
PAEL 11.43 Increased By ▲ 0.28 (2.51%)
PIBTL 4.28 Increased By ▲ 0.04 (0.94%)
PPL 83.84 Increased By ▲ 3.24 (4.02%)
PRL 13.66 Increased By ▲ 0.43 (3.25%)
SILK 0.95 Increased By ▲ 0.04 (4.4%)
SNGP 45.10 Increased By ▲ 1.20 (2.73%)
TELE 6.23 Increased By ▲ 0.16 (2.64%)
TPLP 16.10 Increased By ▲ 0.25 (1.58%)
TRG 124.38 Increased By ▲ 2.80 (2.3%)
UNITY 14.30 Increased By ▲ 0.30 (2.14%)
WTL 1.34 Increased By ▲ 0.02 (1.52%)
BR100 4,276 Increased By 95.2 (2.28%)
BR30 15,683 Increased By 412.9 (2.7%)
KSE100 42,467 Increased By 743.3 (1.78%)
KSE30 16,021 Increased By 275.4 (1.75%)
Follow us

ISLAMABAD: Finance Ministry has shown a willingness to pay Rs 93.438 billion to Government-owned Power Plants (GPPs) on the same mode adopted for payments to Independent Power Producers (IPPs), well-informed sources in Finance Ministry told Business Recorder.

The total amount of GPP receivables of Rs 93.438 billion will be paid equally as follows: Rs 31.146 billion as cash, Rs 31.146 billion as Pakistan Investment Bonds (PIB) and Rs 31.146 billion as Sukuk, the sources added.

Power Division, sources said, has informed Finance Ministry that out of the total amount of Rs 93.438 billion, it plans to clear payable of Pakistan Atomic Energy Commission (PAEC) amounting to Rs43.698 billion, Water and Power Development Authority (WAPDA) Rs 33.636 billion and National Power Parks Management Company Limited (NPPMCL) Rs 16.377 billion against pending claims of RLNG-fired plants.

According to sources, Power Division, in its proposal has sought Rs 93.438 billion as Technical Supplementary Grant (TSG) under-investment head A-014 under Power Division demand number 33 and its release as an investment in power Distribution Companies (Discos).

For issuance of Sukuk, assets to the tune of Rs 32 billion are currently available, which can be earmarked for this transaction. However, Finance Division should ideally be informed at least one month before the execution of the transaction to earmark the underlying asset and finalizing the issue structure.

However, Finance Ministry argues that funds to be provided through TSG from block allocation earmarked in Finance Division’s demand and TSG may be taken in the overall power sector subsidy demand number 33 for CFY 2022-23 instead of under investment head A-014; and accordingly, fund would be released and booked against outstanding subsidy claims, if any, and current/ advance subsidy claims of zero-rated subsidy.

Payments to Chinese IPPs: CPPA-G seeks Rs100bn

On October 19, 2022, Strategic Plans Division (SPD), in a letter reiterated that PAEC is facing serious financial challenges due to declining release of revenue payments against monthly billing, adding that despite repeated requests, regular release of revenue has not improved considerably.

Strategic Plans Division further stated that Central Power Purchasing Agency-Guaranteed (CPPA-G) only paid 39.51 per cent of the billed amount in past three months of Current Fiscal Year (CFY).

According to SPD, the amount being released is insufficient to meet the operational/ maintenance expenses of the plants and obligatory contractual payments (fuel, spares and loan).

SPD maintains that insufficient revenue release by CPPA-G may lead to default in repayment of sovereign guaranteed loans and other contractual payments.

Details of PAEC’s liabilities were at Rs 126 billion due to be paid from October 2022 to April as follows: (i) Exim Bank China (Rs 73 billion ($ 330.47 million); (ii) local banks (Rs 7.50 billion); (iii) fuel payment (Rs 38.50 billion); and (iv) O&M expense, Rs 7 billion.

SPD in its letter requested Secretary Power Division to direct CPPA-G to ensure payment of 80 per cent of the billed amount on monthly basis to ensure smooth functioning of base load plans and meet contractual obligations including repayment of foreign loan.

Water and Power Development Authority is continuously writing to Power Division and CPPA-G payment of agreed amount for on payment to provinces as Net Hydel Profit (NHP). The stock of WAPDA’s receivables is over Rs 300 billion, which is also affecting its development projects.

Copyright Business Recorder, 2022


Comments are closed.

IPPs payment mode: MoF willing to pay GPPs Rs93.4bn

Nation to hear good news about IMF programme soon: Ishaq Dar

Rupee gains 1.04%, closes at 270.51 against US dollar

'Baseless speculations': ISPR rejects claims about COAS Asim Munir visiting US

No shortage of petrol, govt to take action against hoarders: Musadik Malik

Pak Suzuki raises car prices for second time in a month

Not received LHC order suspending resignations of 43 PTI MNAs: NA speaker

Court discharges case against Amir Dogar, orders his release

Qatar agrees to buy OGDCL, PPL shares

Islamabad court rejects Sheikh Rashid’s second post-arrest bail

India says debt talks in focus at G20 finance meet