Pakistan appoints committee
The government of Pakistan has pledged to keep seeking agreement with independent power producers (IPPs) with which it is involved in a long-running dispute over power tariffs. The dispute has severely harmed the country`s investment climate.
At the end of July, the government appointed a new committee to negotiate an end to the dispute which began when the IPPs were accused of bribing officials in order to raise tariffs paid by the Water and Power Development Authority (Wapda). One power producer, Japan Power Generation Ltd., recently agreed to cut its tariff to ¢5.56/kWh.
Another IPP, Hub Power Co., has promised to continue talks with the government to end the dispute. The government wants Hubco to reduce its internal rate of return to 15.76 per cent from 18 per cent, thus reducing the tariff that Wapda pays.