May 18, 2022 (MLN): The Board of Directors of Cherat Cement Company Limited (CHCC) has authorized the management of Madian Hydro Power Limited (MHPL) to negotiate and enter into an agreement for sale of feasibility study to Pakhtunkhwa Energy Development Organization (PEDO) for total consideration approximately Rs160 million, company in a notice to Exchange said.
MHPL was formed as a joint venture between Cherat Cement and Shirazi Investments Pvt Limited to build, operate and maintain a Hydro Power Generation plant at Madian, Swat.
MHPL has engaged international cisultants to develop the feasibility study of the project which was approved by Private Power and Infrastructure Board (PPIB) in 2008.
However, due to deterioration in law-and-order situation in Swat and adjoining areas, the construction work on the project could not be undertaken.
In view of the uncertainty involved, the management of the company was of the opinion that MHPL will not be a going concern in the foreseeable future and decoded to record full impairment loss on this investment in NHPL amounting to Rs107 million.
MHPL was subsequently approached by PEDO with the intention of purchasing the feasibility study for tis own use at a price of Rs160 million.
The company being a 50% shareholder of MHPL will eventually be entitled to 50% of total consideration when distributed by MHPL, the notice added.
