The government on Friday did Rs89.2 billion transactions as the first installment of payments to 20 independent power producers (IPPSs) from the Rs403bn committed under a settlement agreement with 46 IPPs signed in February.
Payment to other IPPs was kept in delay as the National Accountability Bureau (NAB) had decided to examine the deal.
“The government has completed the first payment transaction of 40pc to 20 IPPs amounting to Rs89.2bn equally divided in cash, five years’ Sukuk and 10 years’ Pakistan Investment Bonds (PIBs),” the Ministry of Finance said, adding the transaction was coordinated by the State Bank of Pakistan, power division and its various organizations.
Of the 20 IPPs, six had been set up under the 1994 power policy, two before the 1994 policy, and 12 renewable energy (RE) projects based on wind, solar, and bagasse energy. Total payables to the 20 IPPs under the February 28 agreement stood at Rs225bn. Of this amount, Rs89.2bn has been cleared as the first (40pc) installment. The remaining 60pc will be paid within six months in a similar manner.