AIRLINK 59.59 Decreased By ▼ -0.26 (-0.43%)
BOP 6.27 Decreased By ▼ -0.03 (-0.48%)
CNERGY 4.29 Decreased By ▼ -0.09 (-2.05%)
DFML 15.74 Decreased By ▼ -0.23 (-1.44%)
DGKC 69.53 Decreased By ▼ -2.17 (-3.03%)
FCCL 18.48 Increased By ▲ 0.02 (0.11%)
FFBL 26.81 Increased By ▲ 0.51 (1.94%)
FFL 9.27 Increased By ▲ 0.07 (0.76%)
GGL 10.25 Decreased By ▼ -0.07 (-0.68%)
HBL 115.97 Increased By ▲ 1.47 (1.28%)
HUBC 114.14 Increased By ▲ 1.44 (1.28%)
HUMNL 6.71 Increased By ▲ 0.06 (0.9%)
KEL 4.90 Increased By ▲ 0.07 (1.45%)
KOSM 4.69 Increased By ▲ 0.01 (0.21%)
MLCF 38.70 Decreased By ▼ -0.29 (-0.74%)
OGDC 125.12 Increased By ▲ 1.72 (1.39%)
PAEL 21.61 Decreased By ▼ -0.39 (-1.77%)
PIAA 10.80 Decreased By ▼ -0.20 (-1.82%)
PIBTL 6.03 Increased By ▲ 0.01 (0.17%)
PPL 113.48 Increased By ▲ 5.08 (4.69%)
PRL 27.96 Decreased By ▼ -0.24 (-0.85%)
PTC 10.96 Decreased By ▼ -0.11 (-0.99%)
SEARL 51.82 Increased By ▲ 0.37 (0.72%)
SNGP 68.30 Increased By ▲ 0.30 (0.44%)
SSGC 11.40 Decreased By ▼ -0.20 (-1.72%)
TELE 7.79 Decreased By ▼ -0.28 (-3.47%)
TPLP 11.60 Decreased By ▼ -0.10 (-0.85%)
TRG 72.48 Decreased By ▼ -3.23 (-4.27%)
UNITY 23.63 Increased By ▲ 0.88 (3.87%)
WTL 1.30 Increased By ▲ 0.02 (1.56%)
BR100 6,648 Increased By 103 (1.57%)
BR30 22,570 Increased By 271.7 (1.22%)
KSE100 64,579 Increased By 875.1 (1.37%)
KSE30 21,889 Increased By 381.2 (1.77%)

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)