AGL 5.60 Decreased By ▼ -0.18 (-3.11%)
ANL 8.90 Increased By ▲ 0.02 (0.23%)
AVN 76.85 Decreased By ▼ -2.07 (-2.62%)
BOP 5.26 Decreased By ▼ -0.02 (-0.38%)
CNERGY 4.63 Decreased By ▼ -0.07 (-1.49%)
EFERT 81.27 Decreased By ▼ -0.33 (-0.4%)
EPCL 50.08 Decreased By ▼ -0.83 (-1.63%)
FCCL 13.16 Decreased By ▼ -0.22 (-1.64%)
FFL 5.69 Decreased By ▼ -0.03 (-0.52%)
FLYNG 7.07 Decreased By ▼ -0.08 (-1.12%)
FNEL 4.79 Decreased By ▼ -0.03 (-0.62%)
GGGL 8.80 Decreased By ▼ -0.10 (-1.12%)
GGL 14.55 Decreased By ▼ -1.33 (-8.38%)
HUMNL 5.69 Decreased By ▼ -0.08 (-1.39%)
KEL 2.63 Decreased By ▼ -0.03 (-1.13%)
LOTCHEM 28.60 Decreased By ▼ -0.45 (-1.55%)
MLCF 24.49 Decreased By ▼ -0.61 (-2.43%)
OGDC 72.43 Decreased By ▼ -0.02 (-0.03%)
PAEL 15.36 Increased By ▲ 0.01 (0.07%)
PIBTL 5.00 Decreased By ▼ -0.05 (-0.99%)
PRL 16.10 Decreased By ▼ -0.19 (-1.17%)
SILK 1.08 Decreased By ▼ -0.01 (-0.92%)
TELE 9.14 Decreased By ▼ -0.23 (-2.45%)
TPL 7.23 Decreased By ▼ -0.10 (-1.36%)
TPLP 18.61 Decreased By ▼ -0.34 (-1.79%)
TREET 21.68 Decreased By ▼ -0.32 (-1.45%)
TRG 136.71 Decreased By ▼ -4.44 (-3.15%)
UNITY 16.88 Decreased By ▼ -0.14 (-0.82%)
WAVES 9.86 Decreased By ▼ -0.04 (-0.4%)
WTL 1.41 No Change ▼ 0.00 (0%)
BR100 4,225 Decreased By -29.6 (-0.7%)
BR30 15,518 Decreased By -214.7 (-1.36%)
KSE100 42,150 Decreased By -243.4 (-0.57%)
KSE30 15,588 Decreased By -75.7 (-0.48%)
Follow us

ISLAMABAD: Kot Addu Power Company (Kapco) has expedited its efforts for renewal of its Power Purchase Agreement (PPA), saying that the plant can be available for another 10 years.

In a letter to Secretary Power Division, Rashid Langrial, Chief Executive, Kapco, Aftab Mahmood Butt, has cited an earlier letter of June 13, 2022, titled Power Purchase Agreement of Kapco which is set to expire on October 24, 2022, a mere few weeks from the present.

The CE of the company argued that in accordance with the provisions of the PPA, Kapco formally notified the power purchaser to enter into good-faith negotiations for the renewal of the PPA in June-2019 and has since then been continuously pursuing a consent letter. Unfortunately, the matter has not been concluded due to various reasons including the pandemic (Covid-19) as well as reasons attributable to the power sector of Pakistan.

He further claimed that Kapco has been continuously supporting the system by providing the necessary required power despite its overdue receivables from the power purchaser being in the tens of billions of rupees.

CPPA-G links support for Kapco PPA to NTDC analysis

“We have conducted a comprehensive study on a plan for its remaining and technical life which suggests that it can be operated for at least another 10 years,” he maintained.

Keeping in view the condition of the plant, flexibility of fuel, system constraint, the company is confident that it can still play/contribute to national interest at very attractive and beneficial terms.

In addition, Kapco’s switchyard is being used by the power purchaser/NTDC for 220kV-132kV step-up/step-down facility, irrespective of generation from Kapco power plant. The timely conclusion of the commercial arrangements will ensure its availability to serve (including switchyard). Any failure or delay can create a significant disruption in the system especially for southern Punjab.

Copyright Business Recorder, 2022

Comments

Comments are closed.

Shareholder Sep 22, 2022 08:35am
Plant life long over. But CEO taking package over pkr 150 million per year for last 10 years? Is SECP sleeping.
thumb_up Recommended (0)
DR.ABDUL BASHIR Sep 23, 2022 02:12pm
NEW AGREEMENT MUST NOT INCLUDE CAPACITY PAYMENTS,!!!!!!!!!!!!???(
thumb_up Recommended (0)
Aamer Sep 28, 2022 10:17pm
@Shareholder, r u blind ??plant life still 10 years
thumb_up Recommended (0)

Plant may be available for 10 more years: Kapco steps up efforts for renewal of its PPA

PM terms IK’s remarks ‘undemocratic’

Sindh will rise again against ‘the tyrant’: IK

FBR set to fix minimum value for sugar supply

JPL seeks exemption from IFRS-9

Govt urges Turkiye to expedite TGA

Pakistani embassy in Kabul: IS-KP claims responsibility for attack

‘We must act resolutely to defeat the menace’: FO

Wheat quota of three flour mills suspended

Six coal miners killed in gas explosion in Harnai

Police granted 5-day remand of Swati