ISLAMABAD: The Ministry for Energy Thursday presented an initial estimate of Rs856 billion of potential saving to the Cabinet Committee on Energy due to memorandums of understanding (MoUs) with Independent Power Producers (IPPs), it is learnt.

The Cabinet Committee on Energy met with Federal Minister for Planning, Development and Special Initiatives Asad Umar in the chair here in Islamabad. According to the sources, it was told to the Cabinet Committee that the IPPs that signed MoUs with the government to mutually alter the Power Purchase Agreements (PPAs) had refused to sign final agreements unless and until their dues were not cleared, which run into Rs300-400 billion.

They said that an initial estimate of Rs856 billion of potential savings was also presented to the Cabinet Committee on Energy. The sources said that the meeting also discussed the threat of the IPPs for approaching an international arbitration court and the government's special audit of the IPPs.

The Cabinet Committee on Energy reviewed the report by the committee for negotiation with the IPPs. The Chairman of the Committee, Babar Yaqoob Fateh Muhammad, presented its findings, highlights of the memorandums of understanding (MoU) reached with the IPPs and its recommendations to the CCoE.

The Cabinet Committee on Energy discussed various facets of the MoUs and its implementation. An initial estimate of potential savings was also presented to the CCoE. An implementing committee under the chairmanship of the Minister for Energy was formed to pursue the finalization of agreements based on the MoUs and develop an implementation roadmap.

The CCoE will regularly review the progress of the committee. The meeting was attended by the Minister for Energy, Omar Ayub Khan, Federal Minister for Information and Broadcasting Shibli Faraz, the SAPM on Petroleum, Nadeem Babar, SAPM on Mineral Resources Shahzad Qasim, and officials of various divisions.

Copyright Business Recorder, 2020