ISLAMABAD: Ministry of Power Division has strongly contradicted a news item appeared in a section of media about agreement with Independent Power Producers (IPPs) and termed it contrary to the facts.
The ministry clarifies that under section 5 of the agreement, the IPPs would suspend the reduced tariff if the government failed to pay the dues within scheduled time period. However, the IPPs could revoke the agreement by serving 7-day notice, if payment in default were not ratified within 70 days. Therefore, it would not only be premature but also contrary to the spirit of the agreement to say that the agreement was revoked, said a statement issued here Monday.
The government wished to complete transparency in utilization of all public funds and all legal procedures were being completed in this regard, it further said.
The government has 70 days to make payment to the IPPs for carrying forward the agreement. The government has made all relevant institutions including economic coordination committee part of this process to ensure transparency. The 1st instalment of Rs 85 billion was due today to pay to HUBCO, KAPCO and IPPs installed under 1994 Power Policy.