February 16, 2021 (MLN): Kot Addu Power Company Limited, and the Pakistan Water and Power Development Authority have executed the Master Agreement and the Third Amendment to the Power Purchase Agreement.
According to a notification issued in this regard, the terms and conditions of the agreements remain materially and substantially the same as earlier intimated in the company’s disclosure of February 1, 2021.
KAPCO, WAPDA and the Central Power Purchasing Agency (Guarantee) Limited have also entered into a Novation Agreement to transfer the rights, obligations and liabilities of WAPDA under the Power Purchase Agreement (as amended by the Third PPA Amendment Agreement) in favor of CPPA-G.
CPPA-G is the Market Operator, inter alia, facilitating the power market transition from the current single buyer to competitive market. The Power Purchase Agreements of IPPs are with/have been novated to CPPA-G. Hence, the Company’s PPA is also being novated to CPPA-G.
‘The Agreements and the Novation Agreement require shareholders’ approval in general meeting to become effective’, the notification added.
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