By Staff Reporter
ISLAMABAD: The Economic Coordination Committee of the cabinet on Friday approved a plan to settle inter-corporate circular debt, rationalise tariffs for six nuclear plants and wind down Power Holding Ltd., a shell entity set up to park legacy liabilities.
Finance Minister Muhammad Aurangzeb chaired the meeting, which issued Rs660 billion in sovereign guarantees to back Rs1.225 trillion in local-bank loans for debt clearance and gas diversion to fertilizer plants.
The committee endorsed a Power Division summary for “rationalisation of tariffs and payment adjustments for nuclear power plants (NPPs), government-owned power plants (GPPs), OGDCL and SNGPL,” mirroring earlier deals with private and state plants this year, a statement said.
Memorandums of understanding were signed with the Pakistan Atomic Energy Commission; the Central Power Purchasing Agency was authorised “to execute negotiated settlement agreements based on these MoUs.” The agency and commission may now amend power-purchase agreements for Chashma units C1-C4 and Karachi units K2-K3, totaling 3,500 megawatts.
The government will assume some contractual obligations, with facilitation measures approved; the atomic energy commission will file separate tariff petitions reflecting agreed debt adjustments. The Central Power Purchasing Agency will settle government-plant liabilities from the Rs1.225 trillion facility. Power Holding will receive Rs23.6 billion in loan repayment; Rs119.5 billion in late-payment interest from LNG plants Bhikki, Balloki and Haveli Bahadur Shah will be waived. Remaining dues to Oil and Gas Development Co. will be paid via the two Uch plants, combined capacity over 1,000 megawatts.
Guidelines issued to the Oil and Gas Regulatory Authority under Section 21 of its ordinance allow Rs22 billion in LNG supply costs to enter consumer tariffs, subject to audit. The Finance Ministry said the moves will boost sustainability, streamline payments and cut power-sector costs.
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