EXCLUSIVE: As the meeting between the representatives of Independent Power Producers (IPP) and the Ministry of Finance continued without any clear agreement in Islamabad, Chief Executive of Hub Power Company Limited (HUBCO) Khalid Mansoor told The Correspondent that the negotiations between the two parties are moving in the right direction.
The Chief Executive of HUBCO – independent power producer – said that it is a myth that IPPS are making excessive profits. He said the receivables of HUBCO alone ranged between 95 to 97 billion rupees.
When asked about the extraordinary benefit the rupee devaluation has had on the profitability of IPPs, Khalid Mansoor said the majority of IPPs had invested in dollars and that is why the return on their investment was linked with the dollar.
“Whatever returns we received was as per the contract with government. Fluctuation in exchange rates sometimes benefits you and at times has incurred losses as well,” he observed.
He pointed out that the IPPs had accepted the government’s demand to charge electricity in rupees instead of dollars in the interest of the country.
He said right now 47 IPPs are operating in the country, while HUBCO is operating three power plants, including one renewable energy plant. He added that HUBCO’s installed capacity is currently 2921 MW and they are considering enhancing it further depending on demand and the investment climate in the country.
