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Reading: Water and Power Secretary Refuses to Disclose IPP Agreements
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IPP Agreements Transparency
PhotoNews Pakistan > Pakistan > Water and Power Secretary Refuses to Disclose IPP Agreements
Pakistan

Water and Power Secretary Refuses to Disclose IPP Agreements

Web Desk
By Web Desk Published August 27, 2024 2 Min Read
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Chinese IPPs in Pakistan. Photo Credits: AP
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The Secretary of Water and Power has firmly declined to make the Independent Power Producers (IPPs) agreements public during Senator Zarqa Taimur’s chairing of the Senate’s Functional Committee on Devolution meeting.

The Secretary of Water and Power stated that IPPs represent a complex issue and are not transparent enough to disclose all details openly.

During the meeting, the Chairperson of the Committee pressed for specifics regarding the agreements with IPPs and the extent of payments made. In response, the Secretary indicated that the complexities of the agreements prevent their disclosure to the committee, highlighting a lack of transparency. The Chairperson challenged this stance, asserting that taxpayers deserve to understand the agreements and questioned why the names of individuals who may be exploiting the system are not revealed. She drew parallels to previous government subsidies to sugar sellers and questioned why IPPs have not undergone a forensic audit.

Read: Government to Shift IPP Payment Burdens to Public Amid Inflation

Further advocating for accountability, the Chairperson proposed the potential shutdown of IPPs, citing their significant profits and pointing out that many IPP owners are local figures, including a prominent investor from Lahore, a police officer.

Ministry officials reassured the committee of their serious approach to the IPP issue. They noted that consumers fully facilitate IPPs, including fuel provisions. The portfolio includes 16 China-Pakistan Economic Corridor (CPEC) projects, six under the Pakistan Atomic Energy Commission, and approximately 60 privately managed projects. In conclusion, the functional committee demanded detailed disclosures regarding all 104 IPPs, including standard contracts and capacity payments.

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