IPPs start renewing previous governments’ contracts: Rs 836 billion savings possible

 

ISLAMABAD: Renewal of previous governments’ agreements with IPPs has started: Rs 836 billion is likely to be saved. According to reports, implementation of revised agreements with IPPs has started, plants will save Rs 182 billion for the rest of their lives. The rate of return on local investment has been raised to 17%.

According to sources from Islamabad, the return on equity of foreign investment has been reduced from 15 to 12 percent.

It is also learned that the renewal has resulted in reduction of tariffs for 12 thermal power plants under the 2002 power generation policy. Foreign investor’s return equity has been reduced from 15 to 12 percent

It was also reported that the rate of return on local investment was 17% and the dollar was frozen at Rs 148. The decision will save the plants Rs 182 billion for the rest of their lives.

Earlier, on February 8, the Economic Co-ordination Committee (ECC) had approved the agreements with IPPs. The statement said that the ECC had approved the payment of dues to 46 IPPs by November 30, 2020.

Government will save Rs 836 billion because of the Agreements with IPPs. Federal Cabinet will approval  payments to IPPs..

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