LAHORE - The Independent Power Producers are dismayed that the NTDC and government are not serious in resolving their outstanding dues as the overdue amount continues to increase, touching the figure of Rs53 billion despite payment of Rs8 billion last week.
The eight IPPs said that the outstanding amount against the NTDC for electricity supplied continued to increase as it failed to make payments of current invoices. “Now the situation is that even after payment of Rs8 billion the outstanding dues against the NTDC have accumulated to Rs53 billion” and it happened against the direction of the supreme court that the 24 billion should be paid in addition to payment of current billing so that outstanding amount of these IPPS be reduced, they said adding that if the government continued retiring its debt at current pace the outstanding amount would go on increasing and inhale the liquidity problems for these IPPs. “They would have no cash to meet the fuel requirement and other current obligation” they deplored.
They point out that after reconciliation of outstanding amount at the direction of Supreme Court their net outstanding dues stood at Rs45 billion. They said the govt on behalf of NTDC committed to the court to make part payment of Rs24 billion to these IPPs in equal monthly installments of Rs8 billion starting from July. They said the first installment of the payment was released on August 8, instead of July.
The IPPs appealed the government to implement its contract with the IPPs in letter and spirit. “The image of the country has already suffered badly due to the failure of this government to honor its sovereign guarantees.” They said foreign financiers have shown reluctance in providing finances for the Neelam Jehlum hydro Electric Power Project as the sovereign guarantees of the government have become doubtful. This, they added, has resulted in suspension of work on this vital power project. Similarly they added banks are reluctant to provide credit to new power sector projects that does not auger well for energy security of the country.
The IPPs claimed that government is running inefficient thermal plants at very high cost against the IPPs that could produce double electricity from the same amount of resources that the government is providing to public sector power plants.