Govt. to pay RS. 2 b for RPPs despite dissatisfaction

The federal government intends to pay RS. 2.2 billion rent for two rental power plants which according to their performance reports stand faulty.
The Karkey Karadeniz Electric (Karachi) and Gulf Rental (Gujranwala) are the fortunate companies which will have money despite their unsatisfactory performances, media reports reveal.
Karkey Karadeniz Electric failed to generate power as per its capacity but still the government sees no reason not to pay the company.
The Economic Coordination Committee (ECC) was informed on January 20 that the Central Power Purchase Agency (CPPA) was to pay Rs2.2 billion rent to two rental power plants – Karkey Karadeniz Electric (Karachi) and Gulf Rental (Gujranwala).
The agreement signed with Karkey said the company was to produce 436 megawatts of electricity. Contrary, it produced not more than 50MW. At present, it is generating 100MW per day. Earlier, Nepra had also observed that no significant power from Karkey had been made available to the national grid.
Karkey plant became operational on April 16, 2011, nearly a year after its scheduled date of coming on stream on May 2010.
ISLAMABAD: TP MD, Jan 29, 2012-01-29
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