Advertisement
Categories: BusinessNewsPakistan

Govt to Pay Rs72 Billion to IPPs in Contract Termination Deal

Advertisement

The federal government has decided to pay around Rs72 billion to five Independent Power Producers (IPPs) as part of a deal for the early termination of their contracts.

The companies involved include Atlas Power, Saba Power, Rousch Power, Hubco, and Lalpir Power.

According to sources, the largest payout of Rs36.5 billion will go to Hubco, followed by Rs15.5 billion to Rousch Power, Rs12.8 billion to AES Lalpir, Rs6 billion to Atlas Power, and Rs1 billion to Saba Power. Collectively, the power plants being decommissioned had a total production capacity of 2,400 megawatts.

The decision to terminate these contracts was approved by the federal cabinet during a meeting on October 10, in Islamabad. The move is part of efforts to reduce electricity costs in the country.

Cabinet Approves Independent Electricity Market

These IPPs were previously criticized for receiving substantial payments from the government without delivering electricity. The agreements with the companies were reported to be flawed, leading to significant financial losses for both the government and the public.

Investigations revealed that the IPPs had over-invoiced, making wind power projects in Pakistan four times more expensive compared to similar projects in Bangladesh and Vietnam.

Advertisement
News Desk

Recent Posts

PDA and Arid Agriculture University Sign MoU to Strengthen Industry-Academia Collaboration in Dairy Sector

Pakistan Dairy Association (PDA) and Pir Mehr Ali Shah Arid Agriculture University, Rawalpindi have signed…

2 days ago

ZTBL and PDA Forge Strategic Alliance to Drive Pakistan’s Dairy Sector Modernisation

Zarai Taraqiati Bank Limited (ZTBL) and the Pakistan Dairy Association (PDA) have signed a memorandum…

3 days ago

Trump Cites Five Jets Downed in India-Pakistan Clash, Credits U.S. with Preventing Nuclear Crisis

U.S. President Donald Trump said up to five fighter jets were brought down during the…

1 week ago

Spotify Spotlights Pakistan’s Breakout Star Afusic as the RADAR Artist for Q3

Spotify's RADAR Pakistan returns this quarter, spotlighting Afusic as its latest featured artist. Afusic is…

1 week ago

OICCI Statement on the Recent Loss of Lives Due to Flooding and Extreme Weather Events in Pakistan

The Overseas Investors Chamber of Commerce and Industry (OICCI) is deeply saddened by the tragic…

1 week ago

Stopover in Dubai: what to do, where to eat and where to stay

If you’re planning a Dubai getaway that’s got a little bit of everything, world-class shopping,…

1 week ago