Rift Among IPPs Raises Doubts Over Landmark MoU

Independent Power Producers (IPPs) have split as a result of the landmark MoU signed last month between the former and the Federal government.

According to details, two influential groups of IPPs have turned against each other due to mutual mistrust since the signing of the agreement. Not just this, Khalid Mansour, head of the IPP Advisory Committee (IPPAC) which represented the IPPs during the negotiations over the MoU, has also tendered his resignation.


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Khalid Mansour’s resignation letter states that IPPs feel that I did not act in their best interests during negotiations with the government.

Although I have not seen it myself, I have been told that Nishat Power Ltd, Nishat Chunian Power Ltd, Liberty Power, and Attock Gen Ltd have written a letter to the IPP Negotiations Committee instituted by the Federal government, raising objections over me as the head of IPPAC during the negotiations over MoU.

The MoU proving as a bone of contention has slashed the profit margin of IPPs from 15% to 12% and they are no longer entitled to capacity payments.

Moreover, IPPs are now bound to share the maximum proportion of the additional profit with the government in case the profit margin increases from 12%.


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The government has also successfully negotiated to repeal the clause of disbursing profit to the local investors in the IPPs in US dollars, though foreign investors will continue to receive the profit in US dollars.

The MoU is valid for the 6 months and will be terminated once the government and IPPs officially sign an agreement.

Nishat Power Ltd, Nishat Chunian Power Ltd, Liberty Power, and Attock Gen Ltd are now reportedly contemplating to renegotiate the terms of the MoU with the government in individual capacities.

Via: Dawn



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