LAHORE - Ministry of Water and Power and Independent Power Producers (IPPs), which have recently withdrawn the sovereign guarantee encashment demand, are going to meet on Thursday (today) to settle the payment issues.

Ministry of Water and Power Secretary Yousaf Naseem Khokhar and the IPPs representatives will meet in Islamabad to settle the various issues between the government/power purchaser and the IPPs including the overdue verified and audited amounts due to IPPs under the Power Purchase Agreement.

Power and Finance Joint Secretary Zargham Eshaq Khan, Private Power and Infrastructure Board managing director, National Transmission and Despatch Company (NTDC) managing director and Central Power Purchase Agency (CPPA) chief financial officer will also attend the meeting. “This meeting is a step in the right direction by the government as it shows its resolve to settle the issues with the IPPs,” said a source. “Power shortage is already becoming an issue and the increase in power production is a must to avert a crisis. IPPs are a major contributor to power grid and the issues with them must be resolved amicably,” he added. It is pertinent to mention here that 13 independent power producers (IPPs) of the country have invoked sovereign guarantees of the government to recover unpaid overdue invoices of more than Rs48 billion (out of total outstanding of Rs414 billion at that time) by submitting the final notice to the government through PPIB on March 2, 2017.