PPI agreements under CPEC cannot be renegotiated, government told Senate committee
Islamabad – The government has categorically told the Standing Senate Committee on Power that the China-Pakistan Economic Corridor PPI agreements cannot be renegotiated, just like other PPIs, as Chinese companies could take the matter to arbitration international.
The Standing Senate Committee on Electricity which met under the chairmanship of Senator Saifullah Abro was informed by the head of the electricity division that he could not openly brief the committee on tariff issues for installed power plants by Chinese PPIs under the CPEC. However, it has been said that the power division is ready to brief the committee’s closed-door meeting on the matter.
Some Chinese companies do not support the idea of making the details of CPEC’s PPI deals public, Energy Division additional secretary Waseem Mukhtar told the committee. He said that CPEC’s PPIs were installed as part of the 2013-14 energy policy and the government of Pakistan is the guarantor of the agreements. The Additional Secretary further said that they could not open the tariff issues of CPEC’s PPIs just like other PPIs, as this could lead the country to international arbitration.
Senator Saifullah Abro said residents of areas around nuclear power plants should receive royalties modeled on oil and gas producing areas. He said NEPRA protects consumers and there should be protection for people living in nuclear power plants. areas. However, the NEPRA chairman said he was not an expert in nuclear technology and could brief the committee after discussing it with the Atomic Energy Commission. Saifullah Niaz asked the NEPRA chairman to provide the committee with the authority’s recommendation on the royalty issue. also showed dissatisfaction with the Genco-II misconduct report and said incorrect information was provided to the committee. Managing Director Genco told the forum that the independent panel’s investigation report has been provided to the committee, while the internal investigation report will also be provided shortly.
The chairman of the committee said that it is strange that private power plants operate for 30 years without any fault, but the government-owned plant develops a huge fault within 7 years. The CEO said that Genco-II will pay the expenses incurred by the repair of the Guddu power plant and the matter is submitted to the Board for approval. Senator Saifullah Abro said that when the US company GE directly checked the machine, then why would Genco-II pay for the repair? From the start, the Guddu maintenance contract has been with GE. Guddu’s interim CEO is of the opinion from day one that the repair costs will be paid by Genco-II, which is not true, he added. The chairman of the committee said that there was no technical expert on the boards of state production companies (Gencos). How is it possible that the boards of Gencos can make a correct decision in the absence of technical experts, he added. Saifullah Abro added that eight former CEOs of KE are the chairmen of the Disco board. He alleged that KE controlled all the nightclubs.