Recent reports indicate that the Pakistani government is facing troubling communications from various foreign nations regarding perceived ‘one-sided’ agreements with certain Independent Power Producers (IPPs), as revealed by sources.
According to these sources, the German government has expressed concerns about the Rousch Power Project Limited (RPPL), a company linked to former Minister Abdul Razak Dawood. Under the current Negotiated Settlement Agreement (NSA) with RPPL, a few key points were established:
- The company will transfer its facility to the Government of Pakistan at a nominal fee of $1, payable in PKR at the current exchange rate.
- The company will receive Rs 5.5 billion due to an early termination period.
- Additionally, Rs 2.8 billion will be paid for the upkeep of the facility until its official transfer.
Reports also highlight that Georg Klussmann, from the German Federal Foreign Office, has communicated to Pakistan’s embassy in Germany expressing the German government’s unease regarding how negotiations with RPPL and Siemens are unfolding. Siemens has deemed the current Settlement Agreement as problematic for foreign investors but is open to negotiating a workable resolution.
Berlin is worried that this ongoing issue might negatively impact future diplomatic relations between Germany and Pakistan. The German side has emphasized the potential risk to the confidence of German businesses operating in Pakistan, which could strain broader economic ties. In response, Pakistan’s Charge d’Affaires in Berlin has suggested increased dialogue with the German side to seek a mutually beneficial resolution.
