Moving towards new power purchase agreement with K-Electric

On Sunday, Federal Minister Azhar announced the move to the signing of a new Power Procurement Agreement (PPA), the federal government, and K-Electric.

Hammad Azhar went on to Twitter to declare that the Federal Government and K-Electric agreed on guidelines for resolving much of their longstanding disagreements over additional payment, production, and subsidy disbursements.

"We will move quickly to sign a PPA InshAllah," he said as previously signed by other IPPs worldwide.

On 5 May, the ECC approved 35 Independent Power Producers (IPPs) out of a total of 47 to pay the first installment of Rs89 billion.

The ECC, chaired by finance minister Shaukat Tarin, met in Islamabad with RS89 billion accepted for 35 IPPs, though due to NAB inquiries payments for the remaining 12 could be declined.

As reports say that the delay is caused by the National Accountability Bureau (NAB) taking its time to nod it, the federal government previously declined a default impression with IPPs on negotiated payments.

The hue and cry raised by several independent power producers (IPPs), according to government sources, were designed to pressure the government and generate an impression of default.

The representatives who did not want to receive the nomination said the payment would be cleared as soon as the NAB authorities gave the summary clarification.