Projected circular debt accumulation declining: CCoE

ISLAMABAD, Feb 4 (APP):The Cabinet Committee on Energy (CCoE) Thursday noted that the projected circular debt accumulation was decreasing as a result of the Circular Debt Management Plan being implemented by the government.
The committee also appreciated the efforts of the Power Division for regular monitoring of circular debt situation and directed them to timely issue the monthly data for the committee to review.
The meeting of the CCOE was held here under the Chairmanship of Minister for Planning, Development and Special Initiatives Asad Umar.
The Power Division presented the latest circular debt status and the projections. The CCoE was briefed about the situation of circular debt from July 2020 to December 2020.
The CCOE in its meeting considered the report of the sub-committee constituted by the CCOE vide its decision dated January 18, 2021 regarding allocation of pipeline capacity to new LNG Terminals.
The CCOE decided that in order to provide fair and level playing field to new LNG terminal, the existing available capacity in pipeline will be allocated to any applicant including CNG, meeting the requisite criteria for three months rolling basis till such time the new Terminals achieve commercial operatios date.
The Power Division submitted the summary on Payment mechanism and Agreement with Independent Power Producers ( IPPs). Power Division informed the committee that out of 47 MoUs the implementation committee has agreed the payment mechanism with 44 IPPs; Secretary Power Division briefed the Committee on the purposed mechanism. Certain members of the committee sought more time to study the proposals in detail. It was therefore decided that the committee would be reconvened on Feb 08 for a final decision in the matter.
The meeting was attended by Minister for Finance Dr Abdul Hafeez Shaikh, Minister for Energy Omar Ayub Khan, Federal Minister for Information and Broadcasting Shibli Faraz, Federal Minister for Maritime Affairs Syed Ali Haider Zaidi, SAPM on Petroleum Nadeem Babar and official of various divisions.