Islamabad, Oct 30; Government’s Renegotiation Efforts with IPPs Pakistan Spark Backlash from Foreign Investors
The government has been getting unsettling communications from various foreign nations regarding
“one-sided” agreements with certain IPPs Pakistan through the energy task force.
According to sources, M/s Rousch Power Project Limited (RPPL), a power corporation \
Owned by the family of former Minister of Commerce and Industries Abdul Razak Dawood, has expressed concerns to the German government.
(i) Because the business is operating on a BOOT basis,
It will transfer the Complex to the Government of Pakistan or its designated entity for one USD,
which will be paid in equivalent PKR at the current exchange rate.
(ii) it will receive Rs 5.5 billion in lieu of the OFME period because it terminated early; and
(iii) it will receive Rs 2.8 billion to preserve the Complex until it is transferred to the Government of Pakistan or its designated entity.
In an interview with Pakistan’s Embassy in Germany, Georg Klussmann, Head of Division for Pakistan at the German Federal Foreign Office,
The Germany is conscious of the threat this issue provides to the confidence of German investors and businesses,
And consequently, to the wider business ties between Pakistan and Germany.
