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Hubco prays SC for Rs 1.75 bn payments by Wapda

RECORDER REPORT

ISLAMABAD: The independent power producer, Hubco, has petitioned before the Supreme Court to order the Water and Power Development Authority (Wapda) to deposit in the court over Rs 1.75 billion payable as capacity purchase price under the Power Purchase Agreement (PPA).

A petition moved by company lawyers here on Tuesday said that the amount has been short-paid by the Authority between June, 1998 and the current month. The petition, signed by Abdul Hafeez Pirzada and Makhdoom Ali Khan, was moved by Advocate on Record, Mehar Khan Malik, with the Registry's judicial branch.

The exact amount sought by Hubco is Rs 1,757,903,239 and all these payments are being deposited with the Supreme Court because of the current litigation between the IPP and the Authority.

The petition also seeks payment of Rs 8,676,546,229, in the Escrow Account. Hubco says the amount was due to it as project company's equity element of the fixed operating costs as laid down in the capacity purchase price. The IPP says it was also short-paid during this same period.

The third direction requested by the IPP is that Wapda should deposit in the Escrow Account by the first of next month (February), and then on the first day of each month "a sum equal to the difference between Rs 845 million and the CPP for the month, in accordance with their agreement, less any amount of the insurance costs including the foreign exchange risk insurance".

The company is also seeking payment on first of each calandar month, and thereafter, a sum equal to the insurance costs element including the foreign exchange risk insurance premium.

The last request made by the company is for permission from the Court to withdraw these amounts immediately after their deposit against the corporate guarantee of Hubco given to the Court to abide by the eventual decisions.

The petition is expected to come up for hearing on January 27 when the other petitions between the parties are also due.