ISLAMABAD - The Economic Coordination Committee of the Cabinet (ECC) on Friday approved granting of government’s sovereign guarantee against financing facility of Rs10.40 billion from local banks for interconnection of imported coal based 1320 MW power plants at Bin Qasim (near Karachi).
The ECC in its meeting Chaired by Finance Minister Ishaq Dar considered proposals from Ministry of Water & Power, Ministry of Petroleum and Natural Resources and Revenue Division.
On a proposal submitted by Ministry of Water and Power, the ECC accorded approval in principle for transfer of all hydropower projects (based on BOOT model) being implemented under 2002 Power Policy, to the respective Provincial/AJK/Gilgit-Baltistan Governments after expiry of the term of the Implementation Agreement. The ECC also approved enhancement of Water use charges (WUC) from Rs. 0.15/kwh to Rs. 0.425/kwh for all upcoming private sector hydropower projects being implemented under the 2002 Power Policy which have not yet achieved Financial Close. It was also decided that the WUC would be reviewed every five years to determine if an increase is required.
On another proposal from the Ministry of Water and Power, the ECC granted approval for authorizing CPPA to sign amendment to the modified and re-stated power purchase agreement with Fauji Kabirwala Power Company.
Considering the proposal submitted by Ministry of Petroleum and Natural Resources, the ECC allowed allocation of up to 9.5MMCFD gas from Badar-2 gas field to M/s SNGPL. The price of gas would be as per the applicable Petroleum Policy. The decision has been taken keeping in view request of SNGPL for allocation of gas from Badar-2 owing to increasing demand and supply gap on their system.
ECC also approved proposal of Revenue Division for extending reduced withholding tax rate of 0.4% for non-filers up to 31st July 2016.
