Another IPP signs amended agreement with govt

Independent Power Producer (IPP) PakGen Power Limited and the Central Power Purchasing Agency (Guarantee) Limited have signed the “PPA Amendment Agreement”.

The government and around two-dozen IPPs are said to have initialled the agreements. PakGen Power Limited, a public listed company, informed this to Pakistan Stock Exchange (PSX) on Tuesday.

Different arbitration disputes have been resolved through the signing of this settlement consisting of the following points: (i) the company has waived off interest on interest and in return would get payments based on First In First Out (FIFO) principle; (ii) the shutdown period of the complex on account of non-availability of fuel has been treated as Other Force Majeure Event under the Power Purchase Agreement and the Term of the PPA has been extended by 156 days. During this extended period the company will issue energy purchase price invoices only and will not issue capacity purchase price invoices for these 156 days, and accordingly Liquidated Damages amounting to Rs2.2 billion imposed on the company for this period shall be withdrawn by the Central Power Purchasing Agency (Guarantee) Limited; (iii) the company is entitled to procure fuel from any licensed oil marketing company other than Pakistan State Oil Company Limited.

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