Govt Convinces All 47 IPPs to Sign Master Agreements

[Morpheus]

Govt Convinces All 47 IPPs to Sign Master Agreements

Posted 4 seconds ago by Syeda Masooma

All 47 independent power producers (IPPs), who had signed memorandums of understanding (MOUs) with the Federal Government in August 2020, have now initialed legally-binding Master Agreements.

​

These MoUs were signed to pave the way for a discounted tariff of Rs. 836 billion in the next 10-12 years. While most IPPs had already come on board in the past weeks, the process was completed today, with the last batch of six IPPs also initialing the Master Agreements on Monday.

These six IPPs were holding out the initialing of the agreement because they were seeking resolution of the issue of excess profit of Rs. 53 billion through a local arbitration tribunal.
These six IPPs signed the Master Agreements after written assurance from the government that the alleged Rs. 53 billion excess profit made by these IPPs would be resolved by the local arbitration tribunal within five months.

However, now with them on board, along with other IPPs that had already signed agreements, the Economic Coordination Committee (ECC) and Federal Cabinet will approve the new power purchase agreements (PPAs) after IPPs get the nod from their board of directors (BODs).

The IPPs and the government have also agreed that the government would pay the dues worth Rs. 450 billion, owed to the IPPs, in two installments.

The official statement says that the government negotiation teams and the remaining six IPPs have also agreed to the terms of the legally-binding Master Agreement.

This is a milestone achievement for the government as all the 47 IPPs are on board. The formal signatures will be done between government officials and IPPs after the approval of the Federal Cabinet and the respective boards of the IPPs.

Govt Convinces All 47 IPPs to Sign Master Agreements

All 47 independent power producers (IPPs), who had signed memorandums of understanding (MOUs) with the Federal Government in August 2020,

propakistani.pk

+++++++++++

 

[Pakistansdefender]

Govt Convinces All 47 IPPs to Sign Master Agreements

Posted 4 seconds ago by Syeda Masooma

All 47 independent power producers (IPPs), who had signed memorandums of understanding (MOUs) with the Federal Government in August 2020, have now initialed legally-binding Master Agreements.

​

These MoUs were signed to pave the way for a discounted tariff of Rs. 836 billion in the next 10-12 years. While most IPPs had already come on board in the past weeks, the process was completed today, with the last batch of six IPPs also initialing the Master Agreements on Monday.

These six IPPs were holding out the initialing of the agreement because they were seeking resolution of the issue of excess profit of Rs. 53 billion through a local arbitration tribunal.
These six IPPs signed the Master Agreements after written assurance from the government that the alleged Rs. 53 billion excess profit made by these IPPs would be resolved by the local arbitration tribunal within five months.

However, now with them on board, along with other IPPs that had already signed agreements, the Economic Coordination Committee (ECC) and Federal Cabinet will approve the new power purchase agreements (PPAs) after IPPs get the nod from their board of directors (BODs).

The IPPs and the government have also agreed that the government would pay the dues worth Rs. 450 billion, owed to the IPPs, in two installments.

The official statement says that the government negotiation teams and the remaining six IPPs have also agreed to the terms of the legally-binding Master Agreement.

This is a milestone achievement for the government as all the 47 IPPs are on board. The formal signatures will be done between government officials and IPPs after the approval of the Federal Cabinet and the respective boards of the IPPs.

Govt Convinces All 47 IPPs to Sign Master Agreements

All 47 independent power producers (IPPs), who had signed memorandums of understanding (MOUs) with the Federal Government in August 2020,

propakistani.pk

+++++++++++

This is unachievable achievement by this government.
Not even government with 2/3 majorities can do that.
This is remarkable.

 

[IceCold]

Aisi news per mout per jati ha aik khas community ko...

 

[Black.Mamba]

Kathpotli. Itna bhi nahi socha kiya hou ga becharay IPP owners aur unki aulad ka?

 

[Patriot forever]

Govt Convinces All 47 IPPs to Sign Master Agreements

Posted 4 seconds ago by Syeda Masooma

All 47 independent power producers (IPPs), who had signed memorandums of understanding (MOUs) with the Federal Government in August 2020, have now initialed legally-binding Master Agreements.

​

These MoUs were signed to pave the way for a discounted tariff of Rs. 836 billion in the next 10-12 years. While most IPPs had already come on board in the past weeks, the process was completed today, with the last batch of six IPPs also initialing the Master Agreements on Monday.

These six IPPs were holding out the initialing of the agreement because they were seeking resolution of the issue of excess profit of Rs. 53 billion through a local arbitration tribunal.
These six IPPs signed the Master Agreements after written assurance from the government that the alleged Rs. 53 billion excess profit made by these IPPs would be resolved by the local arbitration tribunal within five months.

However, now with them on board, along with other IPPs that had already signed agreements, the Economic Coordination Committee (ECC) and Federal Cabinet will approve the new power purchase agreements (PPAs) after IPPs get the nod from their board of directors (BODs).

The IPPs and the government have also agreed that the government would pay the dues worth Rs. 450 billion, owed to the IPPs, in two installments.

The official statement says that the government negotiation teams and the remaining six IPPs have also agreed to the terms of the legally-binding Master Agreement.

This is a milestone achievement for the government as all the 47 IPPs are on board. The formal signatures will be done between government officials and IPPs after the approval of the Federal Cabinet and the respective boards of the IPPs.

Govt Convinces All 47 IPPs to Sign Master Agreements

All 47 independent power producers (IPPs), who had signed memorandums of understanding (MOUs) with the Federal Government in August 2020,

propakistani.pk

+++++++++++

These are IPP's under policies before 2015. This is in itself a great achievement, but the elephant in the room is CPEC IPP's under 2015 policy. They are the ones responsible for around 2/3 capacity payments by 2023.

There are some hints of willingness from China, but let's see how that unfolds.

 

[ziaulislam]

These are IPP's under policies before 2015. This is in itself a great achievement, but the elephant in the room is CPEC IPP's under 2015 policy. They are the ones responsible for around 2/3 capacity payments by 2023.

There are some hints of willingness from China, but let's see how that unfolds.

Lets see what china does

I believe they will be under pressure once the rest of the IPPs chip in
So why govt set up so many plants?
Without investing a penny in distribution

 

[Verve]

So why govt set up so many plants?
Without investing a penny in distribution

Optics ... news ... without giving a damn about future costs and consequences. Sahiwal Coal Plant is one prime example.

 

[Patriot forever]

Lets see what china does

I believe they will be under pressure once the rest of the IPPs chip in
So why govt set up so many plants?
Without investing a penny in distribution

Yes that's what the government is hoping for.

Commissions and incompetence in agreements. (People don't realize the actual structure of CPEC ( especially IPP's, they are on state backed commercial loans given not low interest concessionary loans by government of China). The PPA is in cents, I will give an example of RLNG plants under CPEC ( the PPA is around 7-8 cents/kwh and in this agreement the capacity component is calculated at 92% production and almost 3 cents in this agreement is due to guranteed ROI, interest component etc). The dollar was around 100 at that time (artificially valued, I mean who signs agreements in dollar terms when you are yourself subsidizing dollar in the first place) now it's at 160, and to further add to the insult generation is a lot lower than 92% so a hit of additional capacity payment surcharge on top of it because of transmission capacity and actual demand. To the common public they sold the lie of 8Rs.

Yes in fact no significant work has been done on transmission in Plmn tenure. The main transmission project under CPEC was Lahore Mitiari transmission line was started and completed in this government. (Feasibility was done in 2013 by a Canadian company but the construction started in Dec 2018 in such projects there is little political publicity and commission).

 

[ziaulislam]

With IPPs deal govt should be able to plug in new circular debt
But retiring old circular debt it self is impossible task(2.4 trillion rupees)

But first thing first

 

[Norwegian]

These are IPP's under policies before 2015. This is in itself a great achievement, but the elephant in the room is CPEC IPP's under 2015 policy. They are the ones responsible for around 2/3 capacity payments by 2023.

CPEC is not debt trap lol @Muhammad Omar

Energy sector circular debt touches Rs 2 trillion

The country's energy sector circular debt has touched whopping level of Rs 2 trillion as failures are witnessed starting from generation, transmission distribution and recovery.

www.brecorder.com

So why govt set up so many plants?
Without investing a penny in distribution

PMLN expert team, that's why

Optics ... news ... without giving a damn about future costs and consequences. Sahiwal Coal Plant is one prime example.

Khata Hai Par Lagata Bhi To Hai

I mean who signs agreements in dollar terms when you are yourself subsidizing dollar in the first place

Behind every bad financial deal there is an Ishaq Dollar with his expert team

@Mav3rick @POPEYE-Sailor @FOOLS_NIGHTMARE @muhammadhafeezmalik @syedtalhamaududi

 

[Norwegian]

But retiring old circular debt it self is impossible task(2.4 trillion rupees)

Ask China for concessions

 

[Muhammad Omar]

CPEC is not debt trap lol @Muhammad Omar

Energy sector circular debt touches Rs 2 trillion

The country's energy sector circular debt has touched whopping level of Rs 2 trillion as failures are witnessed starting from generation, transmission distribution and recovery.

www.brecorder.com

PMLN expert team, that's why

Khata Hai Par Lagata Bhi To Hai

Behind every bad financial deal there is an Ishaq Dollar with his expert team
View attachment 713245
@Mav3rick @POPEYE-Sailor @FOOLS_NIGHTMARE @muhammadhafeezmalik @syedtalhamaududi

IPP agreements were signed by Benazir in 90's

 

[Norwegian]

IPP agreements were signed by Benazir in 90's

Not 2015 IPP agreement under CPEC

 

[Patriot forever]

12 more power projects: Nepra reduces RoE, RoEDC, O&M, insurance components
Mushtaq Ghumman 10 Apr 2021

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ISLAMABAD: National Electric Power Regulatory Authority (Nepra) on Friday reduced Return on Equity (RoE), Return on Equity during Construction (RoEDC), Operation & Maintenance (O&M) and insurance components of 12 more power projects, which will result in an estimated saving of Rs 150 billion over the term of these projects.
Of these, 12 power projects have already signed revised agreements with the Federal Government, seven bagasse, three wind and two solar PV Independent Power Producers (IPPs) having cumulative capacity of around 355MW.
The names of power projects whose RoE and RoEDC have been reduced from 17 to 12 percent, O&M by 10 percent and insurance from 1 percent to 0.7 percent are as follows: (i) JDW-II, 26.35MW; (ii) JWD-III, 26.35MW; (iii) Rahimyar Khan Mills Limited (RKML), 30MW; (iv) Hamza Sugar Mills Limited, 15MW; (v) Thal Industries Corporation Limited (TICL), 41MW; (vi) Al-Moiz Industries Limited, 36MW; and (vii) Chanar Energy Limited Limited, 22MW.
The names of three wind power projects whose RoE and RoEDC have been slashed from 17 percent to 13 percent, O&M by 20 percent and insurance from 1 percent to 0.7 percent are as follows: FFC Energy Limited (FFCEL) 49.5MW, Act Wind Power Limited 30MW and Artistic 49.3MW.
The RoE and ROEDC of AJ Power Private Limited (AJPPL) 12MW and Harappa Solar Limited 18MW have been reduced from 17 percent to 13 percent, O&M by 15 percent and insurance from 1 percent to 0.7 percent.
The tariff share of these IPPs, for energy generation beyond their respective annual plant factors, has also been reduced. The reduction in tariff will result in estimated savings of around Rs150 billion over the remaining life of the projects.
The Authority under the prevailing rules and regulations admitted the applications submitted by Central Power Purchasing Agency (CPPA-G) for tariff adjustments of these plants and subsequently conducted hearings in the matter on March 03, 2021. After detailed deliberations, the Authority finalized their decision to revise the tariff components of these power plants. These savings are in addition to the recent tariff reduction of 12 thermal power plants estimated to save Rs 182 billion over the remaining life of the projects. So, total saving including these and earlier determination of the 12 thermal power plants is of around Rs 332 billion.
The revised agreements of these 12 projects are under probe at the National Accountability Bureau (NAB) and the Power Division has already made it clear that it will not release agreed amount to the power projects until a clear chit is received from the anti-graft body.
However, NAB, in its letter, has conveyed to Power Division that it has nothing to do with the agreements as these do not fall within the ambit and purview of Section 9 of the National Accountability Ordinance (NAO), 1999 but in the jurisdictional domain of the Power Division.
Any delay in payments to IPPs is a default by government and will further exacerbate circular debt as the government will have to pay late payment interest on all the amounts not paid.
The IMF has urged the government to pay Rs 180 billion (40 percent of Rs 403 billion agreed amount) to the IPPs by end May 2021. It has been argued that a NAB case can be registered even if they write categorically that Power Division can make the payments as their work is related to criminal investigation and not civil decision making.

12 more power projects: Nepra reduces RoE, RoEDC, O&M, insurance components

ISLAMABAD: National Electric Power Regulatory Authority (Nepra) on Friday reduced Return on Equity (RoE), Return on...

www.brecorder.com

Nepra revises tariff for 2nd batch of IPP's. IPP's under 1992 policy framework remain. (A part from 2015 IPP's)

 

[ziaulislam]

12 more power projects: Nepra reduces RoE, RoEDC, O&M, insurance components
Mushtaq Ghumman 10 Apr 2021

Facebook

Twitter

Whatsapp

Comments

ISLAMABAD: National Electric Power Regulatory Authority (Nepra) on Friday reduced Return on Equity (RoE), Return on Equity during Construction (RoEDC), Operation & Maintenance (O&M) and insurance components of 12 more power projects, which will result in an estimated saving of Rs 150 billion over the term of these projects.
Of these, 12 power projects have already signed revised agreements with the Federal Government, seven bagasse, three wind and two solar PV Independent Power Producers (IPPs) having cumulative capacity of around 355MW.
The names of power projects whose RoE and RoEDC have been reduced from 17 to 12 percent, O&M by 10 percent and insurance from 1 percent to 0.7 percent are as follows: (i) JDW-II, 26.35MW; (ii) JWD-III, 26.35MW; (iii) Rahimyar Khan Mills Limited (RKML), 30MW; (iv) Hamza Sugar Mills Limited, 15MW; (v) Thal Industries Corporation Limited (TICL), 41MW; (vi) Al-Moiz Industries Limited, 36MW; and (vii) Chanar Energy Limited Limited, 22MW.
The names of three wind power projects whose RoE and RoEDC have been slashed from 17 percent to 13 percent, O&M by 20 percent and insurance from 1 percent to 0.7 percent are as follows: FFC Energy Limited (FFCEL) 49.5MW, Act Wind Power Limited 30MW and Artistic 49.3MW.
The RoE and ROEDC of AJ Power Private Limited (AJPPL) 12MW and Harappa Solar Limited 18MW have been reduced from 17 percent to 13 percent, O&M by 15 percent and insurance from 1 percent to 0.7 percent.
The tariff share of these IPPs, for energy generation beyond their respective annual plant factors, has also been reduced. The reduction in tariff will result in estimated savings of around Rs150 billion over the remaining life of the projects.
The Authority under the prevailing rules and regulations admitted the applications submitted by Central Power Purchasing Agency (CPPA-G) for tariff adjustments of these plants and subsequently conducted hearings in the matter on March 03, 2021. After detailed deliberations, the Authority finalized their decision to revise the tariff components of these power plants. These savings are in addition to the recent tariff reduction of 12 thermal power plants estimated to save Rs 182 billion over the remaining life of the projects. So, total saving including these and earlier determination of the 12 thermal power plants is of around Rs 332 billion.
The revised agreements of these 12 projects are under probe at the National Accountability Bureau (NAB) and the Power Division has already made it clear that it will not release agreed amount to the power projects until a clear chit is received from the anti-graft body.
However, NAB, in its letter, has conveyed to Power Division that it has nothing to do with the agreements as these do not fall within the ambit and purview of Section 9 of the National Accountability Ordinance (NAO), 1999 but in the jurisdictional domain of the Power Division.
Any delay in payments to IPPs is a default by government and will further exacerbate circular debt as the government will have to pay late payment interest on all the amounts not paid.
The IMF has urged the government to pay Rs 180 billion (40 percent of Rs 403 billion agreed amount) to the IPPs by end May 2021. It has been argued that a NAB case can be registered even if they write categorically that Power Division can make the payments as their work is related to criminal investigation and not civil decision making.

12 more power projects: Nepra reduces RoE, RoEDC, O&M, insurance components

ISLAMABAD: National Electric Power Regulatory Authority (Nepra) on Friday reduced Return on Equity (RoE), Return on...

www.brecorder.com

Nepra revises tariff for 2nd batch of IPP's. IPP's under 1992 policy framework remain. (A part from 2015 IPP's)

Incompetence

Moving fast is also important

Time itself is money

Major investors are awaiting power problem resolution as it is one of the most risky area