Islamabad, Oct 21: Altern Energy Subsidiary Moves to Terminate Power Contract with Government. A subsidiary of Power Management Company (Private) Limited, Rousch (Pakistan) Power Limited (RPPL), has sent the federal government’s proposal for an early termination of its Power Purchase Agreement (PPA) to its shareholders for review and approval at the Shareholders’ Meeting.
Altern Energy Limited (PSX: ALTN) owns the Power Management Company (Private) Limited as a subsidiary. In accordance with the 1994 Power Policy, RPPL has a power plant. It has been working with the Government of Pakistan’s Task Force for Power Sector Reforms (the Task Force).
Before the end of their terms in 2032, RPPL has been presented with a proposal by the Task Force for the Early Termination of its Power Purchase Agreement (PPA) with the Central Power Purchasing Agency (Guarantee) Limited (CPPA), Implementation Agreement with the President of the Islamic Republic of Pakistan on behalf of the Government of Pakistan (IA), and the Guarantee issued by the Government of Pakistan (Guarantee).
The off-taker, CPPA, will pay RPPL’s receivables per the terms under consideration, and the government will receive its complex in accordance with the PPA’s provisions. The request for an early termination of the agreements was sent to RPPL’s shareholders by the board of directors on October 18, 2024, for review and approval at the shareholders’ meeting.
