The Central Power Purchasing Authority (CPPA) has disbursed Rs. 142 billion to Independent Power Producers (IPPs) in order to reduce the stock of circular debt.
The development is in line with the International Monetary Fund’s (IMF) recommendation of reforms and progress in the energy sector in a recently signed staff-level agreement for the SBA facility amounting to $3 billion, according to a report by Arif Habib Limited (AHL).
To recall, the government also paid Rs. 385 billion to IPPs of PP 1994 and PP 2002 last year.
Port Qasim Electric Power Company Ltd (PQEPC) got Rs. 8.32 billion, Engro Powergen Thar Limited Rs. 4.31 billion, National Power Parks Management Company Private Limited Rs. 22 billion, China Power Hub Generation Company (Private) Limited Rs. 9.21 billion, and Karachi Nuclear Power Plant-Unit-2 Rs. 8.75 billion. The full breakup of disbursements is as follows:
| Company Name | Amount in Millions |
|---|---|
| ACT Wind (Pvt) Limited | 40 |
| AJ Power (Private) Ltd. | 10 |
| Appolo Solar Development Pakistan Limited | 257 |
| Artistic Energy (Pvt.) Limited | 75 |
| Atlas Power Limited | 2,700 |
| Attock Gen Limited | 2,750 |
| Best Green Energy Pakistan Limited | 137 |
| Chanar Energy Limited | 15 |
| China Power Hub Generation Company (Pvt.) Ltd | 9,210 |
| Chiniot Power Limited | 350 |
| Crest Energy Pakistan Limited | 184 |
| Daral Khwar HPP | 100 |
| Engro Powergen Qadirpur Limited | 1,000 |
| Engro Powergen Thar (Pvt) Limited | 4,310 |
| Fauji Kabirwala Power Company Ltd. | 500 |
| FFC Energy Limited | 100 |
| Foundation Power Company Daharki Ltd. | 2,500 |
| Foundation Wind Energy-I Limited | 350 |
| Foundation Wind Energy-II (Pvt.) Limited | 350 |
| Gul Ahmed Wind Power Ltd | 400 |
| Halmore Power Generation Company Limited | 1,600 |
| Hamza Sugar Mills Limited | 20 |
| Harappa Solar (Pvt) Limited | 15 |
| Hawa Energy (Private) Limited | 50 |
| Huaneng Shandong Ruyi Energy (Pvt) Ltd | 10,004 |
| Hydrochina Dawood Power (Private) Limited | 295 |
| JDW Sugar Mills Ltd. | 20 |
| JDW Sugar Mills Ltd. | 70 |
| Jhimpir Power (Private) Limited | 50 |
| Karachi Nuclear Power Plant-Unit-2 | 8,751 |
| Karachi Nuclear Power Plant-Unit-3 | 2,668 |
| Karot Power Company (Pvt.) Limited | 631 |
| Kohinoor Energy Ltd. | 800 |
| Kot Addu Power Company Ltd. | 4,250 |
| Lalpir Power (Private) Limited | 2,000 |
| Laraib Energy Limited | 125 |
| Liberty Daharki Power Limited | 1,500 |
| Liberty Power Tech Limited | 2,050 |
| Lucky Electric Power Company Limited | 5,500 |
| Master Wind Energy Limited | 50 |
| Metro Power Company Ltd | 50 |
| Narowal Energy Limited | 2,500 |
| National Power Parks Management Company Private Limited | 9,000 |
| National Power Parks Management Company Private Limited | 13,000 |
| Neelum Jhelum Hydropower Company (Pvt.) Ltd. | 2,200 |
| Nishat Chunian Power Limited | 1,600 |
| Nishat Power Limited | 2,000 |
| Orient Power Company (Private) Limited | 1,600 |
| Pak Gen Power Limited | 2,500 |
| Pakhtunkhwa Energy Development Organization (Malakand-III) | 250 |
| Port Qasim Electric Power Company (Pvt.) Limited | 8,317 |
| Punjab Thermal Power Private Limited | 750 |
| Quaid E Azam Solar Power Pvt Ltd | 50 |
| Quaid-e-Azam Thermal Power (Pvt) Limited | 7,000 |
| Rousch Pak Power Ltd. | 1,750 |
| RYK Mills Limited | 20 |
| Sachal Energy Development (Private) Limited | 139 |
| Saif Power Limited | 2,250 |
| Sapphire Electric Company Limited | 2,500 |
| Sapphire Wind Power Company Limited | 15 |
| Star Hydro Power Limited | 100 |
| Tenaga Generasi Limited | 600 |
| Thal Industries Corporation Ltd | 50 |
| ThalNova Power Thar (Pvt.) Ltd | 1,302 |
| Thar Coal Block-1 Power Generation Company (Pvt) Limited | 3,325 |
| Thar Energy Limited | 2,716 |
| The Hub Power Company Limited | 2,000 |
| Three Gorges First Wind Farm Pakistan (Private) Limited | 25 |
| Three Gorges Second Wind Farm Pakistan Limited | 98 |
| Three Gorges Third Wind Farm Pakistan (Private) Limited | 110 |
| Tricon Boston Consulting Corporation (Private) Limited | 25 |
| Tricon Boston Consulting Corporation (Private) Limited | 25 |
| Tricon Boston Consulting Corporation (Private) Limited | 25 |
| Uch Power Ltd. | 1,000 |
| Uch-II Power (Pvt.) Limited | 7,000 |
| UEP Wind Power (Pvt)Ltd | 149 |
| Yunus Energy Limited | 100 |
| Zephyr Power (Pvt.) Limited | 40 |
| Zorlu Enerji Pakistan Limited | 25 |
| Total | 141,993 |
As per the Ministry of Energy monthly report, during 11MFY23, the stock of circular debt increased by Rs. 394 billion to Rs. 2,646 billion (Monthly average: Rs. 35.8 billion) compared to a decline of Rs. 27 billion during the same period last year.
Out of the total Rs. 394 billion increase, Rs. 249 billion has been added by recovery losses of DISCOs followed by Rs. 171 billion of quarter tariff adjustments (QTA) and fuel charges adjustments (FCA). Moreover, an amount of Rs. 128 billion has also been provided through fiscal space.
Listed IPPs
Among the listed IPPs, HUBC, NEL (a subsidiary of HUBC), TEL (a subsidiary of HUBC), LEL (a subsidiary of HUBC), NPL, LPL, KAPCO, ROUSCH (a subsidiary of ALTN), NCPL, EPQL, PKGP, and SPWL received the payment, said AHL in its report. The details of payments are given below:
Besides the listed IPPs, CPHGC (an associate of HUBC), LEPL (a subsidiary of LUCK), EPTL (a subsidiary of ENGRO), and TNPL (an associate of HUBC) also received an amount of Rs. 9.2 billion, Rs. 5.5 billion, Rs. 4.3 billion, and Rs. 1.3 billion, respectively.
According to the report, NPL has a room of Rs. 5.65 per share (Rs. 11.17 at zero payment of liabilities) for dividend payment after paying its all liabilities. HUBC can pay Rs. 10.79 per share if the company does not pay its liabilities.
KAPCO also received Rs. 4.3 billion and may announce a dividend amounting Rs. 5.0 per share. NCPL received Rs. 1.6 billion but it has Rs. 6.2 billion for short-term borrowings and payables.
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