Independent power producers reject charges of unfair deals

Published April 13, 2020
Say witch-hunting will only have negative fallout for Pakistan. — AFP/File
Say witch-hunting will only have negative fallout for Pakistan. — AFP/File

ISLAMABAD: The Independent Power Producers Advisory Council (IPPAC) has said neither the IPPAC nor any Independent Power Producer (IPP) was consulted or approached in preparing the inquiry committee’s report over alleged losses in the power sector.

The allegations being levelled against the IPPs about un­fair agreements and misappropriation in tariff and fuel con­­sumption rates are ill-conceived, unfounded, baseless and disappointing, which are causing serious damage to their rep­utation, according to an IPPAC statement issued on Sunday.

It said the IPPs gave their sweat and blood for the country’s development at a time when no one was willing to invest in Pakistan. “The IPPs have empowered an uncertain economy, which had not witnessed such a sizeable quantum of Foreign Direct Investment ever in the past,” it added.

Say witch-hunting will only have negative fallout for Pakistan

The statement highlighted that the government had not paid the IPPs for years, with the result that the IPPs were at the brink of default being owed around Rs600 billion, yet they continued to remain available to provide uninterrupted power supply while keeping the greater national interest at the forefront.

Previously, the government had given a lot of relaxations to nine IPPs in the form of a settlement agreement in national interest. But it was the government that remained unable to obtain formal approval(s) to implement the same, the IPPAC said, adding that the opportunity had been lost. The Settl­ement Agreement was consented to by such IPPs that had won the Arbitral Award by the London Court of International Arbitration (LCIA) in 2017 for the recovery of unpaid capacity payments, which had been deducted in contravention of legally valid and binding power purchase agreements.

The statement recalled that similar witch-hunting exercises in the past had caused immense damage to the investment climate and economic prospects of the country and if nothing was learnt from the past mistakes, it would again lead to the same negative results.

The IPPs had always remained available to engage in a meaningful dialogue with the government to discuss and find an amicable solution to the most pressing needs of the country. In the prevalent conditions, given the Covid-19 pandemic, the IPPAC and IPPs were ready to do their part to help the Pakistan economy and nation during this time of need, in addition to providing uninterrupted power supply.

Published in Dawn, April 13th, 2020

Opinion

Educating merged districts
Updated 12 Apr 2021

Educating merged districts

The seven merged districts of KP, with a combined population of over five million, do not have a single university.
Greater visibility
12 Apr 2021

Greater visibility

It is not surprising that the custodians of patriarchy are fearful.
Rethinking executions
11 Apr 2021

Rethinking executions

One convict’s fight to escape the gallows exposes the deep flaws in our criminal justice system.

Editorial

Pakistan-India peace
Updated 12 Apr 2021

Pakistan-India peace

Experts note that everything — including Kashmir — can be resolved if there is a will in both capitals.
12 Apr 2021

Child abuse

IN its annual report, the NGO Sahil found that there has been a 4pc increase in documented cases of major crimes...
12 Apr 2021

New tax chief’s task

THE FBR got a new chairman on Friday. Asim Ahmed, a senior IRS officer who was serving as the Board’s IT member...
11 Apr 2021

Dissension within PTI

WITH the dust from the PDM’s implosion still not fully settled, the PTI is now faced with growing dissension from...
11 Apr 2021

Power to arrest

A SUPREME Court verdict announced on Thursday spelled out what might be considered a self-evident truth in any...
11 Apr 2021

Unequal vaccine distribution

IT is in times of crisis that we often see the best — or worst — of humanity. In this regard, the pandemic has...