May 24, 2021 (MLN): Kot Addu Power Company Limited (KAPCO), has informed via notification to Exchange that the Facilitation Agreement and the Amendment to the GoP Guarantee both dated May 21, 2021 have been executed between the Company and the President of the Islamic Republic of Pakistan for and on behalf of the Islamic Republic of Pakistan.
Accordingly, the effectiveness of the Master Agreement dated Feb 11, 2021, the Third Amendment to the Power Purchase Agreement dated Feb 11, 2021 and the Novation Agreement dated Feb 15, 2021 have been completed.
The aforesaid announcements were made by KAPCO in continuation of the notices dated Feb 01, 2021 and Feb 16, 2021 and approvals obtained at the Extraordinary General Meeting of the Company held on March 24, 2021.
The Company and the Power Purchaser will, inter alia, progress matters for settlement of the outstanding liquidated damages arbitration dispute on terms approved by the shareholders at the EGM; and consequently, the expiry of the term of the Power Purchase Agreement will be extended for 485 days with effect from June 27, 2021.
