Islamabad - The country is likely to save around Rs 856 billion within next 10 years as a result of revision of the agreements with Independent Power Producers (IPPs) and government owned power plants.

The disclosure was made here in the Cabinet Committee on Energy (CCOE), which met under the chairmanship of Federal Minister for Planning, Development and Special Initiatives Asad Umar here Thursday.

Cabinet Committee on Energy reviewed the report by the committee for negotiations with Independent Power Producers (IPPs). The Chairman of the Committee Babar Yaqoob Fateh Muhammad presented its findings, highlights of the MoUs reached with the IPPs and its recommendations to the CCoE. The CCoE discussed various facets of the MoUs and its implementation. An initial estimate of potential savings was also presented to the CCoE. An implementing committee under the chairmanship of energy ministry was formed to pursue the finalisation of agreements based on the MoUs and develop an implementation roadmap. The CCoE will regularly review the progress of the committee.

The financial impact of agreements with IPPs, government-owned IPPs and closure of old power plants would be around Rs 856 billion over a period of around 10 years, official sources said.

The savings from the new agreement with IPPs will be around Rs 675 billion, said the source. From the IPPs under power policy 1994 Rs 225 billion will be saved, IPPs under policy 2002, Rs 200 billion and under power generation policy 2006 around Rs 250 billion can be saved during the remaining lifetime of these projects. The remaining savings will come from the government-owned power plants. Impact due to revision in agreements of power plants established under China-Pakistan Economic Corridor (CPEC) is not included in the calculations.

The meeting was attended by Minister for Energy Omar Ayub Khan, Federal Minister for Information and Broadcasting Shibli Faraz, SAPM on Petroleum Nadeem Babar, SAPM on Mineral Resources Shahzad Qasim and official of various divisions.