Independent Power Producers (IPPs) in the country that invoked sovereign guarantees have no other option but to seek legal course as their outstanding dues are yet to be cleared by the government despite five legal notices served to the latter, so far.
Sources said 8 IPPs (Atlas Power, Nishat Power, Nishat Chunian, Liberty Tech, Orient Power, Saif Power, Halmore Power and Sapphire Electric) have so far served 5 legal notices to the government for recovery of their outstanding dues of Rs 65.83 billion, out of which they have received only Rs 22.5 billion, that too to keep them generating electricity.
"Electricity more than this amount has already been dispatched to the power purchaser while the IPPs are still awaiting their remaining Rs 43.34 billion," sources added. Sources said that out of these five notices, the sovereign default has occurred in four while the sovereign default on fifth notice would occur on June 17, 2012, if the government fails to make payment. "The government has not released Rs 18.45 billion to these IPPs even after approval by the cabinet meeting about a month ago," sources added.
According to the sources at IPPAC, the overdue amount of Atlas Power is Rs 7.99 billion after the payment of Rs 3.635 billion by the government against five notices to recover Rs 11.625 billion. Nishat Power's outstanding amount is Rs 8.014 billion after getting Rs 3.510 billion against five notices while the outstanding payment of Nishat Chunian is Rs 8.690 billion, Liberty Tech Rs 8.093 billion, Orient Power Rs 4.283 billion, Sapphire Electric Rs 2.383 billion, Saif Power Rs 2.495 billion and Halmore Power Rs 1.295 billion.
According to the details, first legal notice (for the payments of the month of January) was served on 5 May this year for total claimed amount of Rs 30.434 billion that included capacity payment of Rs 9.758 billion, energy payment of Rs 18.785 billion, and other payment of Rs 1.891 billion.
After the first notice, the IPPs received Rs 19.019 billion from the government and still have to receive Rs 11.415 billion. The 2nd legal notice was served on 22 May for total claimed amount of Rs 8.648 billion, out of that they received Rs 2.374 billion and the balance payment as on 6 June is Rs 6.274 billion. Similarly, the 3rd legal notice was issued on 30 May for total claimed amount of Rs 1.403 billion, but they have not received yet a single penny in this regard.
Against 4th legal notice for total claimed amount of Rs 14.309 billion, they received only energy payment of Rs 1.107 billion. The balance payment of this notice is Rs 13.202 billion. The expiry date of the 5th legal notice is 17 June for total claimed amount of Rs 11.045b, including the capacity payment of Rs 291m and energy payment of Rs 1.922b. This all amount is yet to be payable by the government.