Advertisement
News

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

Sindh Declares May 1 Public Holiday for Labour Day

The Sindh government has announced a public holiday on Thursday, May 1, in recognition of…

3 minutes ago

Shehbaz Sharif Orders Timely PIA Privatisation, Urges Transparency Through Public Broadcasts

Prime Minister Shehbaz Sharif on Friday instructed authorities to complete the privatisation of Pakistan International…

9 minutes ago

Pakistan Responds to India with Border Closures, Trade Suspension, and Diplomatic Expulsions

Prime Minister Shehbaz Sharif convened a high-level meeting of Pakistan’s National Security Committee (NSC) on…

23 hours ago

Indian Soldier Detained After Border Breach as Pakistan Closes Airspace and Cancels Visas

An Indian Border Security Force (BSF) soldier has been taken into custody by Pakistan Rangers…

23 hours ago

In a First for Pakistan, Senior Malaysian Banking Delegation Explores Meezan Bank’s Model for Islamic Banking Insights

Meezan Bank, Pakistan’s first and largest Islamic bank, welcomed a high-level delegation from Malaysia to…

23 hours ago

OICCI express concerns over shipment delays and crippling financial losses due to highway blockade in Sindh

The six-day blockade of the National Highway in Sindh has brought local trade and industrial…

23 hours ago