Capacity payments or the money paid to independent power producers (IPPs) is the most discussed issue in the media and the society these days in Pakistan. The question is who owns these IPPs? According to Pakistan’s senior most news anchor Hamir Mir, the government owns 52 percent of these IPPs while 48 percent are owned by private investors.
Mir claims that the total number of IPPs working in Pakistan is 100 and 51 of these are owned by private companies and groups. Seven of these IPPs are owned by the influential politicians while 18 are owned by international companies from China, Singapore and Norway.
According to Mir’s report, the Mian Mansha Group owns four IPPs and they have been paid Rs4 billion in capacity payments. Abdul Razzaq Dawood’s Rousch (Pakistan) Power Limited (RPPL) too owns a power plant in Pakistan. The power plant produced 4 percent power last year and it was paid Rs6.88 billion in the name of capacity charges.
Nadeem Babar has partnership in an IPP with Orient Power Project owner Mahmood Group. The company produced 32 percent power and it was paid Rs.5.80 billion capacity charges.
Jahangir Khan Tareen owns two IPPs. JDW Sugar Mills Unit 2 was paid Rs1.9 billion and JDW Unit 3 was paid Rs77 crore in the name of capacity charges last year.
Prime Minister Shehbaz Sharif’s son Salman Shehbaz owns the Chiniot Power Limited IPP, which produced 33 percent power last year and it was paid Rs1.55 billion in the name of capacity charges.
