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.
Source: Pro Pakistani