LAHORE - The independent power producers’ outstanding amount has reached Rs230.5 billion in September 2014.

A letter by all the 22 major IPPs to the Finance Minister Ishaq Dar states that they have exhausted all their resources to keep update with their loan liabilities that has disadvantaged their shareholders. The 22 IPPs that signed the letter include HUBCO, KAPCO, AES Lalpir, AES Pakgen, KEL, Liberty (gas), UCH, Rouch, Fauji, Habibullah, AGL Power, HUBCO Narowal, Atlas Power, Nishat Power, Nishat Chunian, Liberty Tech, Orient Power, Saif Power, Sapphire Power, Halmore Power, Uch II Power, and Engro Power.

The letter regretted that even the capacity payments have been withheld which are needed to service the long and short term project loans, insurance payments and salaries of the staff. The cumulative amount of CPP, the letter revealed, has reached Rs54.138 billion of which Rs27.945 billion are overdue for more than 90 days. Similarly, it reveals that the huge amount of Rs50.6 billion has accumulated as interest because of long delays in the payment of power purchased by the IPPs. Experts have pointed out that this huge unnecessary payment could have been avoided had the power purchaser honored its pledge of timely payment of power supplied.The letter revealed that out of total over dues of Rs231.558 billion bulk amount of Rs131.308 to due to Hubco and Kapco. The letter requested the finance minister to take notice of the critical condition of the IPPs and intervene accordingly. The outstanding dues statistics, according to the letter, do not include overdue amount of Saba Power, Foundation Power and New Bong Hydropower. It said that the working capital loans were serviced from the shareholders pocket. The letter states that the IPPs do not need working capital if the payments are made according to the schedule agreed in power purchase agreement.