HUBC finalizes settlement agreement for early expiry of power contracts

October 10, 2024 (MLN): The Directors of Hub Power Company Limited (PSX: HUBC), in the greater national interest, have decided to initiate a Negotiated Settlement Agreement with regard to the accelerated expiry on October 1, 2024.

These agreements were originally scheduled to expire in March 2027 and relate to the company's 1292 MW power generation project located at Mouza Kund, Post Office Gaddani, District Lasbella, Baluchistan.

To recall, this project achieved COD in 1996.

According to the terms of the Agreement, GOP and CPPAG have agreed to settle the company's outstanding receivables up till October 1, 2024.

The Board has agreed to the terms of the settlement and authorized the execution of a definitive agreement in respect thereof.

The aforementioned resolution follows discussions initiated by a Task Force constituted under the Prime Minister's Office, along with other Independent Power Producers (IPPs).

It is worth noting that HUBC called for an emergent board meeting yesterday to discuss the premature termination of some critical contracts.

The contracts reviewed include the Implementation Agreement, Power Purchase Agreement, Fuel Supply Agreement, and related Guarantee.

An early termination of these contracts reflects a strategic shift related to power generation, payments, or fuel supply.

Copyright Mettis Link News