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Cabinet approves termination of contract with 5 IPPs in first pahse

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Digital Desk

ISLAMABAD: The federal cabinet has approved the termination of the contract with five independent power producers (IPPs) in the first phase, Prime Minister Shehbaz Sharif said on Thursday.

Addressing the cabinet meeting in Islamabad, PM Shehbaz said that the government’s move will help consumers save Rs60 billion overall annually, which will bring down electricity prices. “These five IPPs kept the nation’s interests first and their interests aside. The take and pay system has ended for them,” the PM said.

The Prime Minister informed the Cabinet that only the outstanding amounts owed to these IPPs will be paid, without any interest, state-run Radio Pakistan reported.

The premier added that the contracts were being terminated with mutual agreement of the government and the companies that would save Rs 411 billion for the national exchequer.

Praising the five IPPs, the premier told the cabinet members that they played a key role in initiating public relief like the first drop of rain.

Earlier, the five IPPs — HUBCO, LALPIR, Saba Power, Rousch Power, and Atlas Power — agreed to terminate their contracts as demanded by the task force on the power sector overhaul.

Digital Desk

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