Rousch (Pakistan) Power Limited (RPPL), an Independent Power Producer (IPP), has handed over its complex to the designated government entity following the receipt of all agreed amounts from Central Power Purchasing Agency (Guarantee) Limited (CPPA).
The development was shared by Altern Energy Limited (AEL), the parent company of RPPL, in its notice to the Pakistan Stock Exchange (PSX) on Monday.
“It is hereby informed that the subsidiary of the company, Rousch (Pakistan) Power Limited (RPPL), as per terms of its Negotiated Settlement Agreement (NSA), has terminated its Power Purchase Agreement (PPA) entered into with the CPPA, Implementation Agreement entered into with the President of Islamic Republic of Pakistan on behalf of the Government of Pakistan (IA), and the guarantee issued by the Government of Pakistan.
“As per terms of the NSA, RPPL has received all the agreed amounts from CPPA and has handed over the Complex to the designated entity of the Government of Pakistan namely National Power Parks Management Company Limited on 31st December 2024,” read the notice.
Back in November, RPPL had approved the early termination of its long-term agreements with the government and authorised its management to execute a negotiated settlement agreement.
The development came as the government sought to renegotiate or scrap contracts with IPPs in a bid to address financial challenges and streamline the power sector.
Earlier this month, Minister for Power Division Sardar Awais Ahmad Khan Leghari claimed that “successful negotiations” with IPPs had resulted in saving Rs1.1 trillion for the national treasury.
Speaking at the 4th International Hydropower Conference in Islamabad, Leghari revealed plans that a competitive electricity market would be launched in March 2025, where electricity prices would be determined by market dynamics, with the government acting only as a facilitator.
Comments
Comments are closed for this article.