Independent Power Producers Have Withdrawn Notices Immediately

Islamabad: Nine IPPs have withdrawn the notices served to power purchaser with immediate effect due to efforts made by the Ministry of Water and Power with the active support of other stakeholders.

The IPPs namely Atlas Power, Attock Gen, Halmore Power, Liberty Power Tech, Nishat Chunian, Nishat Power, Orient Power, Saif Power and Sapphire Electric Company had served notices to power purchaser on account of non-payment of their dues under sovereign guarantee.

In order to address the issue, detailed deliberations were held under Minister for Water and Power, Syed Naveed Qamar, Power Purchaser, PPIB and representatives of IPPs to find a way out to amicably resolve it so that these power plants remain operational and are able to service their debts to the lenders before 30th September and to avoid calling of the GoP guarantee in future.

After detailed discussion, it was agreed among all the stakeholders that the normal

daily payments to nine IPPs will be restored forthwith; The IPPs under Power Policy 2002 will be paid total outstanding Capacity Payments to service their debt towards the lenders on or before September 29, 2011; The nine IPPs shall withdraw the aforementioned notices to the Power Purchaser forthwith; The Implementation and Power Purchase Agreements with the nine IPPs under Power Policy 2002 will remain intact except for the aforementioned stipulations; and The GOP on or before 15th October 2011, shall pay or procure the payment of all remaining amounts of the Outstanding Amount, less amounts paid until October 14, 2011.

For more information, contact:
Haji Ahmed Malik
Principal Information Officer
Press Information Department (PID)
Tel: +9251 925 2323 and +9251 925 2324
Fax: +9251 925 2325 and +9251 925 2326