December 06, 2024 (MLN): The Board of Directors of Saif Power Limited (PSX: SPL) has approved a revision of the tariff to transition the existing model to a 'Hybrid Take-and-Pay' structure.
This revision will be applicable to the Power Purchase Agreement and Implementation Agreement, as recommended by the Task Force formed by the Prime Minister of Pakistan.
The Board also approved to execute Amendment Agreement with the Government and the Central Power Purchasing Agency (Guarantee) Limited (CPPA) to implement the proposed amendments.
Some salient terms and conditions are as under:
The Amendment agreement shall be effective from November 01, 2024;
Indexation mechanism of O&M has been changed;
Tariff of cost of working capital and O&M have been revised;
Return on Equity tariff component, will be paid in a hybrid take and pay mode;
Insurance premium tariff is capped at 0.9% of EPC cost;
GOP will unconditionally withdraw Arbitration under Arbitration submission Agreements;
Payment of outstanding receivables as on Oct 31, 2024 within in 90 days of approval of the Agreement by the Cabinet;
Waiver of late payment interest till Oct 31, 2024; and
LCIA Arbitration clause in PPA will be substituted with Islamabad seated Arbitration under the local laws.
