Engro Powergen Qadirpur signs amendment agreement with GoP, CPPAG

February 17, 2025 (MLN): Engro Powergen Qadirpur Limited (PSX: EPQL) has entered into an Amendment Agreement with the Government of Pakistan (GoP) and Central Power Purchasing Agency (Guarantee) Limited (CPPAG).

Under this agreement, the Company will implement a Hybrid Take-and-Pay Model, effective retrospectively from November 1, 2024.

As part of this model, the Power Purchase Agreement (PPA) will be updated to include several key changes, the company's filing on PSX revealed today. 

The Company will receive 35% of the Return on Equity (ROE) and Return on Equity During Construction (ROEDC) as part of the Capacity Payment, with the right to claim any differential if the net electrical output exceeds this threshold.

Additionally, the Company has waived all claims related to late payment interest as of October 21, 2024.

In return, the GoP has committed to facilitating a back-to-back waiver of late payment interest with Sui Northern Gas Pipelines Limited (SNGPL), with CPPAG responsible for any unrecovered amounts.

As part of the settlement, CPPAG will pay the Company Rs8.04 billion for receivables accumulated up to November 1, 2024, within 90 days.

Furthermore, all claims under the Arbitration Settlement Agreement executed in June 2022 have been settled.

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