CCoE Approves MoUs Between Govt and IPPs to be Converted Into Formal Contract

The Federal Cabinet has granted its explicit approval to convert the Memoranda of Understanding (MoUs) signed between the Independent Power Producers (IPPs) and the Government of Pakistan (GoP) into formal agreements.

Four dozen MoUs have been signed between the GOP and the IPPs whereby the issue of the mode and duration of payments are still contentious issues.


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The Cabinet Committee on Energy (CCoE) approved the conversion of the MoUs into agreements to facilitate their transformation into practical contracts.

According to the draft Master Agreement for the MoUs in question, “the power purchaser shall work towards providing access to the bilateral market at the earliest, and the GoP shall actively support the creation of a competitive power market”.


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It also stated that “The company [IPP] agrees to be bound by the decision or determination of NEPRA for the mechanism for recoveries where applicable, pursuant to the reconciled numbers between the committee and the company to assess if the company has made any excess profit as filed before NEPRA”.