Govt shuns plans to renegotiate $15b energy projects

[muhammadhafeezmalik]

exactly who made these contracts?

This is not a workable contract to buy fuel or electricity for longer period in PKR. What if next year the cost of production increases than selling price??

 

[AsifIjaz]

Benazir/Zardari followed by nawaz made these IPP contracts .. They have sovereign national guarantees till 2028 to 2030..
This means that as things stand the government is in a quagmire for almost whole or atleast better half of 2020s.
The circular debt will keep on growing unless you change the nature or the contracts or buy out the companies with its future potential and current and future liabilities. This will make it a smaller pill to swallow.
Similarly,
To bring the energy mix down in the world.. one needs competitive bidding for hydel and solar/wind projects followed by coal.. nuclear and LNG projects. The problem with Pakistan is that the CPEC projects, though cheaper than furnace and diesel projects are still on the higher side of the hydel rates. This is because no other nation was willing to invest 1 billion plus per most of these projects. These projects again have 25 to 30 years sovereign guarantees thus leading to a double whammy for Pakistan.
Even if we increase the power consumption via industrialisation, even then we can not decrease the electricity rates and the 9 cents per unit being sold to export industries will still be lower than the average electricity rate.
To conclude..
No matter who signed the contracts.. IPPs or CPEC ... the rates need to be decreased by one means or the other.

 

[AZ1]

This is not a workable contract to buy fuel or electricity for longer period in PKR. What if next year the cost of production increases than selling price??

Its too late to hide what pmln did. Now our generations will suffer and still suffering because of pmln contracts Thanks pmln and nawaz for destroying this country.