The government’s Task Force for Power Sector Reforms has approached Rousch (Pakistan) Power Limited (RPPL) for early termination of its power purchase agreements.
Crescent Steel and Allied Products Limited, the parent company, shared this development with the Pakistan Stock Exchange (PSX) through a notice on Tuesday under section 96 of the Securities Act 2015 and Clause 5.6.1(a) of the PSX Regulations of the PSX rules.
“RPPL has received a proposal from the task force for early termination of its Power Purchase Agreement entered into with the Central Power Purchasing Agency (Guarantee) Limited (CPPA), Implementation Agreement entered into with the President of the Islamic Republic of Pakistan on behalf of the Government of Pakistan, and the guarantee issued by the Government of Pakistan, before the end of their term in 2032,” read the notice.
Altern Energy Limited (AEL) owns 59.98% of shares of Rousch (Pakistan) Power through its subsidiary Power Management Company (Private) Limited which was established under the 1994 Power Policy.
Crescent Steel and Allied Products Limited and its subsidiary company CS Capital (Private) Limited collectively hold 17.6% of shares in Altern Energy Limited.
Under the terms being contemplated, RPPL will be paid its receivables by the off-taker, CPPA, and its complex will be handed over to the government as per the terms of the PPA.
On October 18, 2024, RPPL’s Board of Directors referred the proposal for early termination of the agreements to the shareholders of RPPL for consideration and approval in the shareholders’ meeting.
