ISLAMABAD: Federal Minister for Energy (Power Division) Sardar Awais Ahmad Khan Leghari said that a total of 93 Independent Power Producers (IPPs) are currently operating in the country having a cumulative power generation capacity of 22,671 MW.
In a written reply to a question of MNA Muhammad Atif, Federal Minister Leghari, Monday, told the National Assembly that a total of 50 IPPs are based on local investment, 17 IPPs are based on foreign investment and 26 IPP are based on combination of local and foreign investments.
The minister said that the government has paid a total of Rs428.435 billion capacity payment during financial year 2023-24 of four IPPs; China Power Hub Generation Company (Pvt) Ltd (Rs137.035 billion), Huaneng Shandong Ruyi Energy (Pvt) Ltd (Rs113.707 billion), Port Qasim Eclectic Power Company (Pvt) Limited (Rs120.373 billion) and Lucky Electric Power Company Limited (Rs57.32 billion).
The minister said that the existing Power Purchase Agreements allow the IPPs to recover their fixed costs including debt servicing through Capacity Purchase Price which is absolutely on the basis of availability of plant for generation. He said that the Prime Minister has constituted a task force to identify and oversee implementation of structural reforms in the power sector of Pakistan, with a view to reduce electricity tariff for the consumers, as well as, the financial burden of the sector borne by the federal government.
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According to the written reply there are many sponsors/ shareholders such as Lucky Cement Mills Limited, Lucky Textile Mills Limited, Gadoon Textile Limited, Mustafa Tapal, Adnaan Tapal, Daanish Tapal, Maqsood Ismail, Muhammad and others of IPPs on Wind. Similarly, the shareholders of IPPs on fuel are Hub Power Company Limited, Kohinoor Energy Limited and Lucky Electric Power Company.
The foreign shareholders of IPPs are Korea Water Resources Corporation, Daewoo Engineering and Construction Co Ltd, KOEN, Dl E and C, Shanghai Electric Dubai, Shanghai Kaihal Industrial Co Ltd, Huaneng Shandong Power Generation Company Limited, Jining Chengjian Investment Co Ltd, Alo-Mirqab Capital SP, China Three Gorges South Asia Investment Limited, Zirlu Enerji Elektrik Uretium A.S, Super Success Investments Limited, JPL Holding Limited, Engie S.A France, Best Green Energy Limited, etc.
He said that there are five commissioned IPPs having install capacity 3,742-MW in Balochistan. He said that Hub Power Project, HUBCO on furnace oil located at Tehsil Hub, district Lasbela has capacity 1,292 MW, Habibullah Costal Power Project on gas/ RLNG at Quetta has installed capacity of 140 MW, Uch Power Project on low btu gas at Dera Murad Jamali district Nasirabad has installed capacity 586 MW, Uch-II Power Project at Dera Murad Jamali installed capacity 404 MW and China Power/ Hubco Power Project on imported coal, installed capacity 1,320 MW and upcoming 300MW coal-based power project on imported coal in December 25, 2024 in Gwadar. In another replay, the minister said that the government could not arrange of sources so far to pay circular debt of Rs2.3 trillion. However, he said that various measures are being taken to limit further increase in the circular debt stack.
Copyright Business Recorder, 2024
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