ISLAMABAD, Feb 08 (APP): The Cabinet Committee on Energy (CCoE) Monday approved the report of the sub-committee constituted by the CCOE vide its decision on January 18, 2021 regarding allocation of pipeline capacity to new LNG Terminals, with an aim to encourage investment and provide a level playing field to the LNG terminals.
The meeting of the Committee was held under the Chairmanship of Minister for Planning, Development and Special Initiatives Asad Umar here.
The Power Division submitted the summary on Payment Mechanism and Agreement with Independent Power Producers (IPPs).
The summary was based on the output of the implementation committee that was constituted to convert the MoUs with the IPPs into legally binding agreements.
The committee completed its task and agreed on a detailed implementation mechanism with all the IPPs. Secretary Power Division briefed the CCoE on the salient features of the agreements and other details.
He further briefed that the agreements will result in significant savings over the life of these projects, as envisioned in the MoUs. The CCoE approved the summary with recommendations to send the summary to ECC & Cabinet for further approval.
The Power Division requested the CCoE approval for ratification of a mistake made in previous summaries submitted to CCoE in its meetings held on February 27,2019 and August 28,2019, whereby three companies were erroneously included in two different categories at the same time.
The committee took a serious view of the matter. The Ministry was asked to rectify the mistake immediately and extent full facilitation to the private investors.
The meeting was attended by Minister for Energy Omar Ayub Khan, Minister for Information and Broadcasting Shibli Faraz, Minister for Finance and Revenue Abdul Hafeez Sheik, Asvisor to Prime Minister on Commerce and Investment Abdul Razak Dawood, SAPM on Petroleum Nadeem Babar and official of various divisions.