Lalpir Power evaluates early termination of power purchase agreement

October 10, 2024 (MLN): Lalpir Power Limited's ( PSX: LPL) Board of Directors in its emergent meeting discussed the terms proposed for the early termination of key agreements with the Government of Pakistan.

The Board discussed the terms proposed for the early termination of the company's Implementation Agreement dated September 24, 1994 (IA).

This agreement was made with the President of the Islamic Republic of Pakistan on behalf of the country.

The Board also reviewed the Power Purchase Agreement dated November 03, 1994 (PPA), which was entered into with the Central Power Purchasing Agency (Guarantee) Limited, referred to as the Power Purchaser.

Additionally, they considered the Guarantee dated May 16, 1995.

These documents, collectively known as the Agreements, were issued by the President of the Islamic Republic of Pakistan, for and behalf of the Islamic Republic of Pakistan, in light of the discussions between the Government of Pakistan (GOP), its entities and certain IPPs, including the company.

The agreements are scheduled to expire on November 28, 2028.

The Board recommended that the proposed terms for early termination of the agreements be placed before the shareholders for their approval.

The Board authorized the chairman of the Board of Directors and / or the Chief Executive and / or the Company Secretary to decide the date, time and venue for and issue notice for Extra-Ordinary General Meeting for seeking the shareholders' approval for the early termination of the agreements.

The termination of the Agreements will be subject to the approval of shareholders of the company and formal signing of the relevant agreement with the Power Purchaser and the GOP.

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