Finance ministry, IPPs signal Rs450bn cost deal

• Two dozen IPPs, together with HUBCO, entered right into a preliminary settlement with govt
• Finance ministry to pay IPPs 40% instantly, remaining 60% within the subsequent monetary yr
• Beneath the settlement, IPPs to be paid dividends in Pakistani rupees as a substitute of US {dollars}

ISLAMABAD: The Ministry of Finance and Impartial Energy Producers (IPPs) have inked a deal for cost price Rs450 billion to the latter, Geo Urdu reported on Monday.

In keeping with the deal paperwork, two dozen IPPs, together with the Hub Energy Firm Restricted (HUBCO), had entered right into a preliminary settlement with the federal government beneath which the finance ministry would pay the IPPs 40% of the Rs450-billion cost — or Rs180 billion — instantly, whereas the remaining 60% — or Rs270 billion — might be paid within the subsequent monetary yr.

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The IPPs, as per the paperwork, have apprised the Pakistan Inventory Alternate (PSX) of the preliminary settlement, whereas the HUBCO submitted details about the settlement with the Central Energy Buying Company (CPPA).

The paperwork additional said that late cost surcharge can be slashed beneath the settlement and would quantity to 2% for the primary 60 days after the deal.

The doc additionally underscored that beneath the settlement, IPPs can be paid dividends in Pakistani rupees as a substitute of US {dollars}, whereas a closing approval of the deal can be sought from the committee and the Cupboard.

Learn extra: IPPs refuse to cut back tariff system beneath govt ToRs