ECC Gives nod for repayment of loans, approves standard for transmission line projects

A meeting of the Economic Coordination Committee (ECC) of the Cabinet was held at the Prime Minister's Office on Tuesday. The meeting was chaired by the Finance Minister, Senator Mohammad Ishaq Dar.

During the meeting, the ECC considered and approved four proposals of the Ministry of Water and Power for the issuance of new sovereign guarantees by Ministry of Finance in respect of Fresh Syndicated Term Finance Facilities for Power Holding (Private) Limited in order to set off / adjust existing facilities. Ministry of Finance will provide government guarantee for the repayment of loan as well as interest for the fresh facilities. In all four cases, the principal installment payments shall be deferred for a further period of 2 years from the date of execution of
the fresh facilities.

The ECC also approved a proposal of the Ministry of Water and Power, regarding an existing Term Finance Facility for Power Holding (Private) Limited, to restructure the facility by extending the tenor of the facility from 7 years to 10 years, including extension in grace period from 3 years to 6 years.

The ECC, after considering and deliberating upon another proposal of the Ministry of Water and Power, approved the Standard Implementation Agreement (IA) for transmission line projects under Policy Framework for Private Sector Transmission Line Projects, 2015. As per the same proposal, the ECC also approved the TSA for HVDC Transmission Project (*660 kV Matiari-Lahore).