Private Power & Infrastructure Board (PPIB) has sought viewpoints of CPPA-G and NTDC on estimated Liquidated Damages (LDs) in case of termination of Letter of Support (LoS) of M/s Siddiqsons Energy Limited (SEL).
In a letter to Chief Executive Officer (CEO) and Managing Director NTDC, Managing Director PPIB, Shah Jahan Mirza has said that Siddiqsons Energy Limited, after obtaining seven extensions in the Financial Closing (FC) date, through amendments in Letter of Support, failed to achieve FC by the extended FC Date. Accordingly, Performance Guarantee (PG) amounting to US$ 3,500,000 was en-cashed in August 2022 and termination of LoS was initiated.
According to Managing Director, as per SEL’s Power Purchase Agreement (PPA) executed with CPPA-G on March 8, 2018 pursuant to section 9.4(d), SEL was required to pay by way of Liquidated Damages, a pro rata amount equivalent to Transmission Service Charge (TSC) payable by NTDC to Pak Matiari-Lahore Transmission Company Limited (PMLTC). HVDC transmission line constructed by PMLTC has achieved COD in September 2021.