ISLAMABAD: The Ministry of Finance and Independent Power Producers (IPPs)have inked a deal for payment worth Rs450 billion to the latter, *Geo Urdulink-* reported on Monday.

According to the deal documents, two dozen IPPs, including the Hub PowerCompany Limited (HUBCO), had entered into a preliminary agreement with thegovernment under which the finance ministry would pay the IPPs 40% of theRs450-billion payment — or Rs180 billion — immediately, whereasthe remaining 60% — or Rs270 billion — will be paid in the next financialyear.

The IPPs, as per the documents, have apprised the Pakistan Stock Exchange(PSX) of the initial agreement, while the HUBCO submitted information aboutthe agreement with the Central Power Purchasing Agency (CPPA).

The documents further stated that late payment surcharge would be slashedunder the agreement and would amount to 2% for the first 60 days after thedeal.

The document also underscored that under the agreement, IPPs would be paiddividends in Pakistani rupees instead of US dollars, while a final approvalof the deal would be sought from the committee and the Cabinet.

Source:link