ECC Approves guarantee for Dasu Hydropower, reduces imported fertilizer price

The Economic Coordination Committee (ECC) considered and approved proposals submitted by different ministries, in its meeting held on Friday, chaired by Finance Minister, Senator Mohammad Ishaq Dar.

The ECC approved the proposal of Economic Affairs Division (EAD) for grant  of exemption to Japan International Cooperation Agency (JICA) from all
levies and taxes for the loan extended by the Government of Japan / JICA on concessionary terms, amounting to JPY 2.665 billion (equivalent to US$ 26
million approximately), for the Islamabad – Burhan Transmission Line Reinforcement Project. The main objective of the project is to improve the
reliability of the national grid and to meet the growing demand for electricity transmission through reinforcement of transmission lines necessary for power supply to Islamabad Capital Territory and surrounding areas, thereby contributing to the improvement of economic infrastructure of
Pakistan.

ECC also considered and approved the draft standard Power Purchase Agreement (PPA), proposed by the Ministry of Water & Power, which will be
used as standard template for future PPAs. The draft PPA is a tripartite agreement between Central Power Purchasing Agency, Guarantee Ltd (CPPA) on behalf of ex-WAPDA Distribution Companies, National Transmission and Despatch Company Limited (NTDCL) and the Power Producers.

ECC approved the proposal of Ministry of Water & Power for GoP guarantee for repayment of loan amount of US$ 140 million, i.e. 40% of US
$350 million loan amount for the Dasu Hydropower Project. The World Bank will provide guarantee for the remaining US$ 210 million loan amount.

ECC also considered and approved the request of the Ministry of Industries & Production to reduce the price of imported Urea fertilizer lying with
National Fertilizer Marketing Limited (NFML) to Rs. 1,000/- per 50 kg bag in the interest of the public for disposal during kharif 2017.