Agreements of IPPs under CPEC cannot be renegotiated, Pak govt tells Senate Committee

INTERNATIONAL DESK: The Pakistan government has categorically told the Senate Standing Committee on Power that the agreements of the IPPs under China Pakistan Economic Corridor cannot be renegotiated, just like other IPPs, as the Chinese companies could take the matter for international arbitration.

The Senate Standing Committee on Power that met under Senator Saifullah Abro, was told by the official of the Power division that they cannot brief the committee openly regarding the tariff matters of the power plants installed by Chinese IPPs under CPEC. However it was told that the power division is ready to brief the in camera meeting of the committee on the issue.

Some Chinese Companies don’t support the idea of making the details of agreements on CPEC IPPs public, Additional Secretary Power Division Waseem Mukhtar told the committee. He said that the CPEC IPPs were installed under the 2013-14 Power Policy and government of Pakistan is guarantor to the agreements.

The additional secretary further said that they cannot open the tariff matters of the CPEC IPPs, just like other IPPs, as it could land the country in international arbitration.

Senator Saifullah Abro said that the people of the areas around the Nuclear power plants should be provided the royalty on the pattern of of Oil &Gas producing areas.He said that NEPRA protects the consumers and there should be protection of the people living the nuclear power plants areas.

However, Chairman NEPRA said that he is not an expert of the nuclear technology and can update the committee after discussing it with the Atomic Energy Commission.Saifullah Niaz asked Chairman NEPRA to provide the authority recommendation on the issue of royalty to the committee.

Chairman Committee also showed his discontent over the report on the fault in Genco-II and said that incorrect information was provided to the committee.

Chief Executive Genco told the forum that the enquiry report of the independent panel has been provided to the committee, while the report of the internal inquiry will also be furnished soon.

Chairman of the committee said that it is strange that the private power plants are working for 30 years without any fault but the government owned plant develop enormous fault within 7 years.The CEO said that Genco-II will pay for the expenses incurred by the repair of Guddu Power plant and matter is tabled before the BoD for approval.

Senator Saifullah Abro said that when the American Company GE was directly checking the machine, then why Genco-II will be paying for the repair? From the beginning the maintenance contract of the Guddu is with GE. The acting CEO of Guddu is of the opinion from day one that the expenses of the repair will be paid by Genco-II, which is wrong, he added.

Chairman of the committee said that there is no technical expert on the boards of the state owned Generation companies (Gencos).How is it possible that Gencos boards can make correct decision in the absence of technical experts, he added.

Saifullah Abro further said that eight former CEOs of KE are the board chairmans of the Discos. He alleged that KE is controlling all the Discos. (The Nation)