Saturday , September 26 2020
Breaking News
Home / Breaking News / WAPDA writes letter to CPPA asking to clear Rs221b in dues
WAPDA writes letter to CPPA asking to clear Rs221b in dues

WAPDA writes letter to CPPA asking to clear Rs221b in dues

ISLAMABAD: Water and Power Development Authority (WAPDA) has written a letter to the Central Power Purchasing Agency-Guaranteed (CPPA-G) asking to clear its outstanding dues of Rs 221 billion.

According to media, CPPA-G is an arm of Power Division, to which WAPDA wrote the letter on April 8, 2020 denoting a substantial rise in receivables from the division. The letter also highlighted the status of implementation of the directives of the Supreme Court of Pakistan (SCP) in which division was asked to finalize payment schedule of receivables and release funds.

CPPA-G released an amount of Rs 15 billion to WAPDA in June, 2020 against demand of Rs 20 billion by WAPDA. This amount was required by the authority to pay off a commercial loan of Rs 17.5 billion and markup to Allied Bank Limited (ABL). This shortfall of Rs5 billion further compromised WAPDA’s capacity to absorb financial shocks and meet contractual obligations.

A WAPDA official said, “WAPDA has requested Power Division to direct CPPA-G for immediate clearance of its outstanding dues of Rs 221.019 billion enabling the entity to meet its operational and development needs”.