ISLAMABAD-The Economic Coordination Committee (ECC) of the Cabinet on Wednesday has approved $142 million for meeting the financial requirements of hotel Roosevelt and also increasing tariff for K-electric limited consumers.

The ECC, which was chaired by Adviser to the Prime Minister on Finance and Revenue Abdul Hafeez Shaikh, has approved funds for Pakistan International Airlines Corporation Limited (PIACL) owned Roosevelt Hotel in Manhattan, New York. In order to meet the financial challenges faced by Roosevelt Hotel, New York, the ECC approved the amount up to $142 million for PIACL on the recommendation of the Committee constituted in an earlier meeting of the ECC, headed by Deputy Chairman Planning Commission and including Secretaries of Finance Division, Aviation Division and Law and Justice Division.

Earlier, in last month, the ECC had approved the payment of all liabilities and responsibilities resulting from a debt of $105 million secured by Roosevelt Hotel. The government is appointing the Financial Adviser (FA) to undertake the envisaged leasing of Roosevelt Hotel site for setting up a joint venture project for prospective mixed use development. The Privatisation Commission would appoint the FA through the best suited mode of Privatisation as delineated in the Privatisation Commission (PC) Ordinance, 2000. According to the law/rules /regulations of PC as well as PPRA, the Privatisation Commission will hire the services of FA Consortium which will recommend the best suited Transaction Structure under the modes of privatisation provided in the PC Ordinance /Rules and in consultation with relevant stakeholders.

The ECC has also approved the summary moved by the Power Division for the rationalisation of eleven quarterly adjustments of K-Electric Limited from July 2016 to March 2019. The quarterly adjustments of K-Electric (K-E) for period from July 2016 to March 2019 will be notified with effect from 1st September 2020 to bring the tariff K-Electric at par with what is currently in filed for consumers of (ex-WAPDA) DISCOS.

Power Division had proposed of Rs2.39 per unit average increase with immediate effect to bring K-Electric at par with uniform national tariff currently applicable for all the distribution companies of ex-Wapda. That would mean about Rs1.09 - Rs2.90 per unit increase for different consumer categories.

The ECC had considered a summary submitted by the Power Division on March 4, 2020 for quarterly tariff adjustments for K-Electric Limited for the period July 2016 to March 2019 and had formed a committee, headed by the energy minister, for examining the issue and submitting a report with viable recommendations to the ECC for approval. The committee submitted its recommendations through a summary with the ECC on March 18, 2020. It recommended that the quarterly adjustment to the tune of Rs4.877 per unit – being the differential between the schedule of tariff recommended by Nepra for April to June 2019. Power Division has suggested that the remaining part of about Rs2.59 per unit should be sent back to the Nepra to be dealt under Prior Year Adjustment (PYA) mechanism for gradually making part of the base tariff.