ISLAMABAD: Ministry of Finance (MoF) has sought revised draft of Tariff Differential Subsidy (TDS) agreement with K-Electric (KE), well informed sources told Business Recorder.
Saudi investors, who had sent a legal notice to Pakistan, recently met Prime Minister Shehbaz Sharif and other concerned officials and urged for a speedy resolution of KE’s issues. Pakistan has requested Saudi investors of KE to first withdraw the legal notice and then it will sort out pending issues of KE.
KE’s investors from Europe have serious differences with investors of Saudi Arabia and Kuwait, who expressed their views at one of the meetings of K-Electric.
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According to Finance Ministry, draft TDS agreement is due to be signed between Ministry of Finance, Power Division and K-Electric as recommended by the Task Force headed by former Prime Minister, Shahid Khaqan Abbasi.
The sources said, Power Division was reluctant to share the draft of the agreement with Abbasi-led Committee but at a recent meeting Abbasi directed concerned officials to share the draft with the Committee forthwith so that the draft pacts may be placed before the Cabinet for final approval.
Finance Ministry maintains that the draft TDS agreement shared with Finance Division was deliberated during the meeting held on March 3, 2023, attended by the representative of K-Electric, Power Division, budget and corporate finance wings from Finance Division.
“It was observed that comments/ views of Power Division and CPPA-G have not been shared along with the TDS agreement,” the sources quoted Finance Ministry as saying.
Finance Division has requested that necessary views of Law and Justice Division and Nepra on the draft TDS Agreement be sought. And the Power Division should also provide the following for further processing of the case: (i) Power Purchase Agreement (PPA) between KE and CPPA-G; (ii) Interconnection Agreement between KE and NTDC; (iii) Mediation Agreement regarding payable and receivables issues; and (iv) Views of Power Division and CPPA-G on the TDS Agreement.
Copyright Business Recorder, 2023
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