Sources said that the ECC meeting presided over by Finance Minister Ishaq Dar approved a proposal of Ministry of Water and Power, titled power sector reform - draft tripartite power purchase agreement among Central Power Agency (Guarantee) on behalf of ex-Water and Power Development Authority (WAPDA) distribution companies and National Transmission and Dispatch Company Limited (NTDCL) with the power producers.
The Ministry of Water and Power in the proposal, a copy of which is available with Business Recorder, stated that a meeting of the ECC dated June 17, 2015 approved a revised comprehensive plan for operationalisaion of CPPA-G.
Subsequently, the ECC of the Cabinet dated June 30, 2015 defined the specified benchmarks for phase (II) plans wherein it was recommended to complete signing of new power purchase agreements (PPAs) with public sector generation companies (GENCOs), independent power producers (IPPs) and WAPDA hydel within two years after signing of business transfer agreement (BTA).
The Central Power Purchasing Agency, Guarantee Limited (CPPA-G) held a series of meetings with the relevant stakeholders and formulated a new draft tripartite power purchase agreement, which will be used as standard template for the future power purchase agreements to be signed between the power purchaser and the power producer.
The Ministry of Water and Power further stated that the draft summary was circulated to Finance as well as Law and Justice Divisions for views and comments on April 20, 2017, however, in view of time paucity, they were requested to give their views and comments during the ECC meeting.
The ECC was requested that its approval is solicited to the draft standard power purchase agreements.