IPPs withdraw guarantee notices


Four Independent Power Producers (IPPs), Nishat Chunian, Nishat Power, Liberty and Atlas Power have withdrawn their earlier notices invoking sovereign guarantees after meeting with Minister Water and Power Naveed Qamar and WAPDA officials.
Sources informed that IPPs have taken back the notice as a goodwill gesture and in larger national interest as the NTDC has paid Rs5 billion today and promised to pay the remaining amount by 28 June.
The sources said that for the time being, the government has only made a temporary arrangement as the overdue amount to power producers is likely to escalate to the same level unless the long term solution is provided. There is a continuous deficit between WAPDA payments and invoices of the plants which is not going to narrow down unless the government finds a long-term solution and ensures the timely delivery of payments to the IPPs, otherwise, the IPPs will be in the same situation again.
Sources said that the IPPs never ceased to produce electricity for the country in order to avoid a near shut down situation due to power shortage.