AIRLINK 187.11 Increased By ▲ 2.19 (1.18%)
BOP 10.27 Increased By ▲ 0.66 (6.87%)
CNERGY 7.50 Increased By ▲ 0.24 (3.31%)
FCCL 37.19 Increased By ▲ 0.76 (2.09%)
FFL 14.60 Increased By ▲ 0.26 (1.81%)
FLYNG 24.40 Increased By ▲ 0.12 (0.49%)
HUBC 129.63 Increased By ▲ 3.22 (2.55%)
HUMNL 13.50 Increased By ▲ 0.70 (5.47%)
KEL 4.43 Increased By ▲ 0.14 (3.26%)
KOSM 5.96 Increased By ▲ 0.02 (0.34%)
MLCF 43.39 Increased By ▲ 1.12 (2.65%)
OGDC 201.29 Increased By ▲ 2.78 (1.4%)
PACE 6.09 Increased By ▲ 0.01 (0.16%)
PAEL 39.69 Increased By ▲ 1.94 (5.14%)
PIAHCLA 16.99 Decreased By ▼ -0.10 (-0.59%)
PIBTL 7.82 Increased By ▲ 0.08 (1.03%)
POWER 9.04 Decreased By ▼ -0.18 (-1.95%)
PPL 172.39 Increased By ▲ 4.30 (2.56%)
PRL 34.78 Increased By ▲ 2.03 (6.2%)
PTC 22.39 Decreased By ▼ -0.03 (-0.13%)
SEARL 105.21 Increased By ▲ 3.33 (3.27%)
SILK 1.07 No Change ▼ 0.00 (0%)
SSGC 35.32 Decreased By ▼ -0.21 (-0.59%)
SYM 17.55 Decreased By ▼ -0.37 (-2.06%)
TELE 8.25 Increased By ▲ 0.08 (0.98%)
TPLP 11.75 Increased By ▲ 0.05 (0.43%)
TRG 66.30 Increased By ▲ 0.18 (0.27%)
WAVESAPP 11.70 Decreased By ▼ -0.09 (-0.76%)
WTL 1.54 Increased By ▲ 0.01 (0.65%)
YOUW 3.74 Decreased By ▼ -0.05 (-1.32%)
BR100 11,742 Increased By 132.8 (1.14%)
BR30 34,638 Increased By 522.4 (1.53%)
KSE100 111,433 Increased By 1110.2 (1.01%)
KSE30 34,814 Increased By 402.4 (1.17%)

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

Comments

Comments are closed.