ISLAMABAD: 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.
PPIB willing to revive 330MW SEL project
Managing Director PPIB, in his letter stated that in order to decide a way forward regarding cancellation of LoS by PPIB, the matter was submitted to PPIB Board’s Project Committee held on December 12, 2022 duly attended by representatives of CPPA-G and NTDC.
The Project Committee after detailed deliberations decided that NTDC & CPPA-G to provide: (i) estimated amount of receivables in respect of LDs which may not be received, if SEL’s LoS is terminated and (ii) legal position on these receivables. Managing Director PPIB has requested NTDC and CPPA-G to provide the required information on priority so that it may be submitted for consideration of PPIB Board.
Prime Minister’s Special Assistant on Governance Effectiveness, Dr Jehanzeb Khan made considerable effort to convince PPIB for revival of project, but the latter’s top brass apparently is unwilling. The PPIB Board has exhibited rigidity on the issue of SEL and decided to take action against its own officials employed in the legal section for being lenient with the company during court hearings.
Copyright Business Recorder, 2023
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