Izzat Rubab
ISLAMABAD:
The federal cabinet’s Economic Coordination Committee (ECC) is likely to approve waiver of minimum 66% take or pay commitments in Power Purchase Agreement(s) of three Re-Gasified Liquefied Natural Gas (RLNG) based public sector power plants.
According to sources, ECC to be held on Wednesday will take up three summaries of finance, and power divisions and it is expected that the meeting will take important decisions regarding agenda points.
As per details, power division has solicited from ECC to take important decision regarding waiver of minimum of 66percent take or pay commitment in Power Purchase Agreement(s) & Gas Supply Agreement(s) of three Re-gasified Liquefied Natural Gas (RLNG) public sector power plants and placement of firm gas commitment finalized based on annual production plan of power sector.
Moreover, ECC will take another summary of power division seeking approval of amendments to the facilitation agreement and guarantee agreement with Kot Addu Power Company (KAPCO).
Earlier, the Cabinet Committee on Energy (CCoE) considered power division’s summary regarding waiver of 66percent take or pay commitments in Power Purchase Agreement(s) and Gas Supply Agreement (GSA) of three RLNG public sector power plants namely Quaid-e-Azam Thermal Power Plant, Balloki Power Plant, and Haveli Bahadur Shah Power Plant. And, CCoE approved the proposal.
The stakeholders including Privatization Commission, Petroleum Division, and Power Division undertook the implementation of the decision and relaxation/diminishing of the minimum 66pc take or pay commitment in the PPA and GSA of NPMCL projects comprising Quaid-e-Azam Thermal Power Plant, Balloki Power Plant, and Haveli Bahadur Shah Power Plant.
Sources also told that power division, in another summary, has also sought from the ECC to approve proposed amendments to the facilitation agreement and guarantee agreement with KAPCO.
The CCoE and ECC on 24th September 2020 had approved the report of the Implementation Committee which was mandated to convert the MoUs signed with IPPs into binding agreements. The cabinet has ratified the decisions of CCoE and ECC vide its decision dated 1st December 2020 and approved the report along with Master Agreement and PPA Amendment Agreement with KAPCO, an independent power producer privatized under the applicable privatization laws but operated outside the typical power generation policy framework for IPPs.
It is pertinent to mention that cabinet division has requested ministries/division to kindly ensure that in view of present wave of COVID-19, minimum number of participants may attend the meeting.
