Independent power producers (IPPs) are in a state of frustration to continue producing power as their outstanding amount has reached Rs 230.6 billion. They have requested the finance minister to take notice of this critical condition. A letter signed by all 22 major IPPs sent to Finance Minister Ishaq Dar asking him to save them from total collapse.
The letter states that they have exhausted all their resources to keep update with their loan liabilities that has damaged their shareholders' interest. The letter states that the IPPs do not need working capital if the payments are made according to the schedule agreed in power purchase agreement.
Even the capacity payments have been withheld which are needed to service the long and short-term project loans, insurance payments and salaries of the staff. The cumulative amount of CPP has reached Rs 54.138 billion of which Rs 27.945 billion are overdue for more than 90 days, the letter revealed. Similarly, it reveals that the huge amount of Rs 50.6 billion has accumulated as interest because of long delays in the payment of power purchased by the IPPs.
Out of total over dues of Rs 231.558 billion bulk amount of Rs 131.308 due to Hubco and Kapco. The 22 IPPs that signed the letter include HUBCO, KAPCO, AES Lalpir, AES Pakgen, KEL, Liberty (gas), UCH, Rouch, Fauji, Habibullah, AGL Power, HUBCO Narowal, Atlas Power, Nishat Power, Nishat Chunian, Liberty Tech, Orient Power, Saif Power, Sapphire Power, Halmore Power, Uch II Power, and Engro Power. The outstanding dues statistics according to the letter does not include overdue amount of Saba Power, Foundation Power and New Bong Hydropower.
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