ECC Issues Rs. 111 Billion Sovereign Guarantees for Ministry of Water and Power

The Economic Coordination Committee (ECC) of the Cabinet on Tuesday approved the issuance of sovereign guarantees of Rs 110.95 billion for four projects for the Ministry of Water and Power.

The ECC held a meeting at the Prime Minister’s Office on Tuesday which was chaired by the Finance Minister, Senator Mohammad Ishaq Dar.

The committee considered and approved four proposals of the Ministry of Water and Power for the issuance of new sovereign guarantees by Ministry of Finance in respect to Fresh Syndicated Term Finance Facilities for Power Holding (Private) Limited in order to set off / adjust existing facilities.

Individually the projects are worth:

  • Rs. 30.95 billion
  • Rs. 40 billion
  • Rs. 25 billion and
  • Rs. 15 billion

The Ministry of Finance will provide government guarantee for the repayment of loan as well as interest for the facilities. In all four cases, the principal installments shall be deferred for a period of 2 years from the date of execution of the fresh facilities.

The ECC also approved a proposal of the Ministry of Water and Power, regarding an existing Term Finance Facility for Power Holding (Private) Limited, to restructure the facility by extending its tenure from 7 years to 10 years, including extension in grace period from 3 years to 6 years.

After considering and deliberating upon another proposal of the Ministry of Water and Power, the ECC approved the Standard Implementation Agreement (IA) for transmission line projects under Policy Framework for Private Sector Transmission Line Projects, 2015.

According to the same proposal, the ECC also approved the TSA for HVDC Transmission Project (*660 kV Matiari-Lahore).

ECC also approved another proposal to extend tenure and grace period in respect to Term Finance Facility of Rs. 82 billion for Power Holding (Private) Limited.

ECC accorded approval of Standard Implementation Agreement under Policy Framework for Private Sector Transmission Line Projects, 2015 and Project Specific Transmission Services Agreement.