In another positive development,  Chinese authorities have also indicated to Pakistan’s top notches that they would also review the power purchase agreements (PPAs) of the independent power producers (IPPs) installed under China Pakistan Economic Corridor (CPEC) umbrella keeping in view the rising circular debt and other power sector financial woes adversely impacting the country's economy, a senior top official at Power Division told The News.

The official said the coal-based Port Qasim Power Plant, Sahiwal Power Plant, Hubco Power Project, Hub Balochistan, Engro Thar and UEP wind power plant have been installed under CPEC and their agreements will be discussed with Chinese authorities to get maximum concessions in agreements. The said projects were set up under the 2015 power policy with 15 percent rate of return plus the US dollar indexation.

The official said Pakistan will engage the Chinese authorities on the government to government level for maximum relief in the PPAs once the finalisation of the agreements with the IPPs established under various power policies are completed and signed. Shahzad Syed Qasim, Special Assistant to Prime Minister on Power sector, told The News once the MoUs signed with IPPs and Gencos, RLNG-based power plants, Wapda hydro projects set up under power policies 1994 and 2002 and its impact on end consumers are finalised, then government will initiate talks with Chinese government for required changes in plants installed under CPEC umbrella. However, he avoided sharing further information terming it is a sensitive issue.

https://www.thenews.com.pk/print/701392-positive-vibes-from-china-for-review-of-ppas-with-ipps