ISLAMABAD: The Economic Coordination Committee of the Cabinet (ECC), under the chairmanship of by Finance Minister Ishaq Dar, has approved granting of government’s sovereign guarantee against financing facility of Rs10.40 billion from local banks for interconnection of imported coal based 1320 MW power plants at Bin Qasim).
The ECC also considered proposals from Ministry of Water & Power, Ministry of Petroleum and Natural Resources and Revenue Division.
On a proposal submitted by Ministry of Water and Power, the ECC accorded approval in principle for transfer of all hydropower projects (based on BOOT model) being implemented under 2002 Power Policy, to the respective Provincial/AJK/Gilgit-Baltistan Governments after expiry of the term of the Implementation Agreement. The ECC also approved enhancement of Water use charges (WUC) from Rs. 0.15/kwh to Rs. 0.425/kwh for all upcoming private sector hydropower projects being implemented under the 2002 Power Policy which have not yet achieved Financial Close. It was also decided that the WUC would be reviewed every five years to determine if an increase is required.
ECC also approved proposal of Revenue Division for extending reduced withholding tax rate of 0.4% for non-filers up to 31st July 2016.
