Govt revives take-or-pay conditions

Ahead of the multi-billion-dollar sale of two power plants to a foreign nation, the government on Wednesday revived the compulsory take-or-pay conditions for the supply of gas and purchase of electricity aimed at making them attractive for buyers. The government also decided to increase the price of fertiliser by 9%, or Rs190 per bag, to cut subsidies. Headed by Finance Minister Ishaq Dar, the Economic Coordination Committee (ECC) of the Cabinet took these decisions. “The Petroleum Division tabled a summary on the change in take-or-pay commitments in power purchase agreements and gas supply agreements of three RLNG power plants namely Quaid-e-Azam Thermal Power Plant, Balloki Power Plant and Haveli Bahadur Shah Power Plant,” stated a finance ministry handout. The government is considering selling the Balloki and Haveli Bahadur Shah powerplants, owned by the National Power Parks Management Company Limited, to Qatar. These plants run on imported LNG. “In wake of the prevailing international economic conditions, and the unprecedented price hike of RLNG in the international market, and to optimise the utilisation of RLNG for the continued operations of these powerplants, the has ECC approved the Power Division’s proposal,” added the ministry.