HL Deb 13 April 1999 vol 599 cc117-8WA
Lord Avebury

asked Her Majesty's Government:

What representations they have made to the Government of Pakistan about the effects of action by the latter against the Hubco power project, a 1,200MW electricity generating plant part owned by National Power, and other "Independent Power Projects"; and when they expect those matters to be resolved. [HL1810]

Baroness Symons of Vernham Dean

We remain deeply concerned about the dispute between the Government of Pakistan and the Independent Power Producers, including Hubco. This dispute endangers a major investment by National Power, and has seriously damaged investor confidence in Pakistan. We have raised this problem on many occasions at various levels. My right honourable friend the Minister of State for Foreign and Commonwealth Affairs, Derek Fatchett, did so with the Pakistani Minister of Finance during his visit to Pakistan in February, urging him to reach an early and amicable settlement with the Independent Power Producers. Progress towards settling the dispute is one of the conditions for continued emergency IMF/World Bank lending to Pakistan. Failure to make such progress would jeopardise further disbursements. We shall continue to monitor progress closely.