ISLAMABAD, Pakistan: The federal government has signed a deal with a Chinese Company, handing over 425-megawatt Nandipur Power Project to the Company for a period of 10 years.
The 10-year Contract was signed by the Secretary to Ministry of Water and Power Zaffar Iqbal, Muzaffargarh Thermal Power Station Chief Executive Officer (CEO) Nadeem Rabbani and Head of the Hydro Electric Power System Engineering Company of China (HEPSEC).
The government, as per the contract, is responsible to pay all the federal as well as withholding taxes which happen to be 16 percent.
Moreover, Pakistan Electric Power Company (PEPCO) will provide required items and repair work to the HEPSEC for the whole tenure. Furnace oil, high speed oil and gas will also be supplied by PEPCO.
The Chinese Company can be fined on daily basis if electricity production is delayed. The custom duty on mechanical parts that will be imported is to be paid by Chinese company, the agreement said.
However, the government will cooperate completely to lessen the custom duty or to issue any license or permit.
The Company is bound to pay remaining balance of those workers who will be terminated.
According to officials, legal regulations of this contract have been fulfilled completely.