ISLAMABAD, Feb 20: Independent Power Producers (IPPs) have started pressing the government to make the Water and Power Development Authority (Wapda) pay their outstanding payments for power purchases that range between Rs8 to 10 billion.
The issue was taken up by the representatives of IPPs in their meeting with the minister for water and power, Liaqat Ali Jatoi, here on Tuesday.
Wapda chairman Tariq Hameed, and Private Power Infrastructure Board (PPIB) Managing Director Zafar Ali Khan were also present.
Sources said the government asked the IPP to avoid the practise of closing multiple plants for maintenance purposes at the same time as it created power shortage in the country.
The government was of the view that power producers should change their existing maintenance schedules in a way to ensure the required supply of power.
Sources in the Water Ministry said Mr Jatoi has assured the IPPs of playing his due role in resolving their genuine problems and facilitating prompt payments of power purchases by Wapda.
He said the ministry was working on developing a long-term mechanism to guarantee smooth flow of payments to the power producers in a prompt and transparent manner.
The representatives of IPPs urged the government to devise a mechanism for smooth flow of payments to encourage investment in the power sector.
They complained that tiresome delays in payments of power purchases were scaring away investors and Wapda should change its payment policy and realise the impact of this issue.
Mr Jatoi said a long -term policy was in the anvil and assured that there would be full support of his ministry and other entities to facilitate the IPPs.The independent power producers also briefed the ministry about their expansion plans to enhance their capacity.
Sources said that the meeting also discussed the proposed imported coal project of 1200 MW near Karachi.
A source privy to the meeting said the meeting discussed whether the country would remain heavily dependent on imported coal source for power generation after the implementation of the project. He said there was a common concern that the technology selected for the project would depend on coal analysis and characteristics and that the proposed plant could not be switched over to using indigenous coal at any stage of operations.
The meeting also discussed the cost of setting up an integrated project on imported coal and other short and long term implications.