ISLAMABAD: The government has disbursed Rs 200 billion amongst the power entities after formal approval from the Economic Coordination Committee (ECC) and Cabinet, well-informed sources told Business Recorder.

Power Division sources revealed that the amount has been distributed amongst 77 companies.

Around 20 percent have received 80 percent of the total amount: Port Qasim Electric Power got Rs 22.7 billion, Central Power Rs 15.2 billion, Wapda Hydel 15 billion, National Power Parks Management Rs 13.32 billion.

Power Division, in its summary suggested the following criteria for disbursement of Rs 200 billion: (i) all IPPs which are alleged in the Committee report headed by Muhammad Ali, will be paid in the manner that after disbursement of these funds the total payables to these IPPs remain equal or higher to the alleged excess profits reported or “systemic problems in above referred report.

However, after finalization/decision by competent forum, the payables will be adjusted accordingly; and (ii) for disbursement of funds following priority will be followed: (a) Energy Purchase Price inclusive of GST will be given preference, so that the fuel stock remain at its highest level, among these payments to RLKiG and coal-fired plants will be given preference; (b) capacity payments will be disbursed to meet the debt servicing, and taxation requirements for the quarter ending June 3020; and (c) payments to Wapda, Chasma Nuclear and partial settlement of import of power from Iran and NTDC transmission charges will be disbursed against capacity payments.

Power Division further recommended that these disbursements will strictly be followed for funds released under Rs.200 billion only.

As per existing disbursement methodology, CPPA-G is maintaining the overall percentage based on billings and payments since July 2017 and same will continue to be followed for other disbursements. Such IPPs where the percentage is higher due to what was disbursed in March 2020 for debt servicing, will get minor share to meet operational requirement from this allocation.

Copyright Business Recorder, 2020