Experts regret that the Government of Pakistan has over years lost all the cases filed by independent power producers against it in last five years, which had badly tarnished the image of the country. They said the government should have taken notice of the situation and confront those that advised the state to fight cases in the international courts instead of settling them through negotiations inside the country.
They said fighting cases in international courts is a costly job, adding the loser not only had to pay the disputed amount but also the litigation charges borne by the winners. They said perhaps a chance to visit London instigates the legal advisors to advise the state to challenge a losing cause. Lack of accountability of the advisors, they added, has landed the government in trouble. They said all the cases filed by the IPPs were related to the inability of the government to fulfil its contractual liabilities.
They said government has wasted million in contesting unwinnable cases that were filed against the state of Pakistan by Rouche, Liberty, Orient and Saba Power. Still it contested the case filed by Japan Power and lost again. Who benefited from the process they asked.
Was it the government or those that motivated the government to fight for a lost cause? Power purchase agreements, they added, are whetted by not only the local but global legal experts to protect the interests of the investors. Any default on contractual liability they added is bound to be defeated in any court. They said a similar case is brewing up again. They pointed out that when the previous PPP government failed to fulfil its contractual obligations to the IPPs they were forced to move to the international courts. However they added the PML-N government after assuming power settled the matter out of court by agreeing to arbitration.
He said the government raised a dispute over the dues of Rs 5 billion which was referred to a respected arbitrator Justice Sair Ali a retired judge of Supreme Court of Pakistan. The arbitrator they said gave the verdict in favour of the IPPs. He ordered the government to pay the held up amount of Rs 5 billion to IPPs. However he waived the interest on that amount.
The government was again hoodwinked by some tricky advisor to take stay order from a lower court. He said finding it difficult to get the stay order vacated the IPPS have again decided to move to the London Court of Arbitration as is provided in power purchase agreements they signed with the state. Experts said the government is again likely to lose the case. They said this time around in case of defeat it would have to again bear all legal charges from both sides and may be it had to pay the interest of several years on withheld amount of Rs 5 billion.