ISLAMABAD: The government and 17 Independent Power Producers (IPPs) of Power Policies of 1994 and 2002 are said to have signed hybrid take and pay model ‘amicably’ after two weeks’ extensive and hard discussions in Rawalpindi in the presence high ups.
The Task Force headed by the Minister for Power, Sardar Awais Khan Leghari and comprising SAPM on Power, Muhammad Ali, National Coordinator, Lt. General, Muhammad Zafar Iqbal, Chairman NEPRA, CEO CPPA-G, Managing Director, PPIB, and experts from NEPRA, CPPA-G and SECP, is engaged with the IPPs of 1994 and 2002.
Some of the IPPs, however, informally, complaining of highhandedness by some of the officials who are supporting the Task Force. The government is expecting a saving of upto Rs 200-300 billion.
According to the PPIB’s website, the individual capacity of each IPP, with whom negotiation had been start are as follows Uch-I Power Limited of 586 MWs( COD, October 18, 2000) Pakgen Power Limited of 365 MWs( COD, February 1, 1998), Liberty Power Daharki Ltd 235 MWs (COD September 10, 2001), Kohinoor Energy 131 MWs (COD, June 20, 1997), Fauji Kabirwala Power Company Limited 157 MWs (COD October 21, 1999), Attock Gen Limited (165 MWs)(COD, March 17, 2009), Engro Power Gen Qadirpur Limited 227 MWs( March 27, 2010), Foundation Power (Daharki) of 185 MWs( COD May 16, 2011), Halmore Power Generation Company 225 MWs (COD June 25, 2011), Liberty Power Tech Limited 200 MWs (COD, January 13, 2011, Hubco Narowal Energy Tech Limited 220 MWs(COD April 22, 2011), Nishat Chunian Power Limited 200 MWs (COD, July 21,2010, Nishat Power Limited 200 MWs (COD, June 9, 2010), Orient Power Company 229 MWs (COD May 24, 2010, Saif Power Limited 229 MWs( COD, April 27, 2010), Saphire Power Limited 225 MW(COD October 5, 2010) the first hydropower project i.e. New Bong Hydel IPP 84 MW of Laraib Energy Limited, (COD, March 03, 2013 and Uch-II Power Project of 404 MWs(COD April 4, 2014).
Nishat Chunian Power Limited (NCPL) has formally informed the Pakistan Stock Exchange (PSX) that it has agreed on ‘Hybrid Take and Pay, model. The Company has informed Pakistan Stock Exchange that the Board of Directors of Nishat Chunian Power Limited Company their emergent meeting held on December 04, 2024 has approved the amendments to Power Purchase Agreement, Implementation Agreement and to revise tariff as proposed by the Task Force constituted by the Prime Minister of Pakistan to convert the existing tariff to ‘Hybrid Take and Pay model. The Board also approved to execute Amendment Agreement with the Government of Pakistan (“GoP”) and the Central Power Purchasing Agency (Guarantee) Limited (CPPA-G) to implement the proposed amendments.
Some salient terms and conditions are as under: (i) the Amendment Agreement shall be effective from November 01, 2024; Indexation mechanism of O&M has been changed; (ii) tariff of cost of working capital and O&M has been rebased; (iii) return on equity tariff component, will be paid in a hybrid take and pay mode; (iv) insurance premium tariff is capped at 0.9% of EPC cost; (v) the Company will share profits till FY’23 and it will be adjusted, against receivables from CPPA; (vi) GoP will unconditionally withdraw Arbitration under Arbitration Submission Agreements; (vii) the undertaking provided to the Power Purchaser by the Company to retain its receivables till the conclusion of Arbitration under ASA shall be returned; (viii) payment of outstanding receivables as on Oct 31, 2024 within in 90 days of approval of the Agreement by the Cabinet; (ix) waiver of Delay Payments till Oct 31, 2024; and (x) LCIA Arbitration clause in PPA will be substituted with Islamabad seated Arbitration under the local laws.
