The leaders of the eighteen independent power producers (IPPs) created under the 1994 and 2002 power generating plans are expected to be called by the government starting next week.
The objective, according to sources cited by Business Recorder, is to talk about options for changing their operational contracts from a “take or pay” paradigm to a “take and pay” model.
The government has previously stated that the cancellation of five IPPs’ power purchase agreements (PPAs) saved the national exchequer Rs. 411 billion. On October 10, 2024, the cabinet approved the final settlement and termination of such agreements; however, the official documents are still pending signature.
