Rousch Power in talks for early exit from power agreement

October 22, 2024 (MLN): Rousch (Pakistan) Power Limited (RPPL), a subsidiary of Altern Energy Limited (AEL), is in talks with the government to potentially terminate its Power Purchase Agreement (PPA) ahead of schedule.

Crescent Steel & Allied Products Limited (PSX: CSAP) and its subsidiary, CS Capital (Private) Limited, which collectively hold 17.6% shares in AEL, have reported this key development today. 

RPPL, a power generation company under the 1994 Power Policy, is in discussions with the Government of Pakistan for the early termination of its PPA.

In a notification to the Pakistan Stock Exchange on October 21, 2024, AEL informed that RPPL has engaged with the Task Force for Power Sector Reforms, following a request from the government.

The Task Force has presented a proposal for the early termination of RPPL’s PPA with the Central Power Purchasing Agency (CPPA), its Implementation Agreement with the President of Pakistan, and a Guarantee issued by the Government of Pakistan.

The terms under consideration include the payment of receivables by CPPA and the transfer of RPPL’s power complex to the government in accordance with the terms of the PPA.

Currently, the agreement is set to expire in 2032. RPPL’s Board of Directors, in a meeting on October 18, 2024, referred the proposal to its shareholders for further consideration and approval during the upcoming Shareholders' Meeting.

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