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Hubco denial

RECORDER REPORT

KARACHI: Hub Power Company (Hubco) on Wednesday denied reports, that due to amendments to the Power Purchase Agreement (PPA) Wapda would have to pay an additional five billion dollars over the 30-year life of the project.

"These numbers are based on assumption and allegations with which we do not agree", said Hubco.

Wapda is most incorrect in its statement that no injustice has been done to Hubco. Arbitrary reduction in payment of over half a billion rupees of the GST, and filing of bogus and mala fide FIRs, leading to intimidation of Hubco officials as well as sealing of Hubco's records are some of the well known acts of coercion which cannot be denied, said Hubco.

Hubco also contested that the levellised tariff of 12 IPPs is 4.5 cents. The individual tariffs of IPPs are different as they represent differences in project costs and technology. It is also not correct, the power company said, that Hubco was the only beneficiary of the amendments to the PPA. The removal of the Iqra surcharge of approximately 15 million dollars in amendment two reduced the project cost and was to Wapda's exclusive benefit.

It referred to several foreign independent consultants' report in which they unanimously rated the Pakistani IPPs as competitive as in any other developing country.