Rousch (Pakistan) Power Limited (RPPL), an Independent Power Producer (IPP), has approved an early end to its long-term agreements with the government of Pakistan.
This decision was disclosed by RPPL’s parent company, Altern Energy Limited, in a notice to the Pakistan Stock Exchange (PSX) on Wednesday.
In a recent extraordinary general meeting held on November 11, 2024, RPPL shareholders approved the early termination of the Power Purchase Agreement (PPA) with the Central Power Purchasing Agency (Guarantee) Limited (CPPA), along with the Implementation Agreement (IA) and a government-issued guarantee. The RPPL management has been authorized to pursue a negotiated settlement for this termination.
The settlement outlines that agreements scheduled to end in 2032 will now terminate retroactively from October 1, 2024. CPPA will clear agreed receivables by December 31, 2024, and RPPL will transfer control of the complex to the government by the same date.
Last month, Rousch (Pakistan) Power Limited (RPPL) received a proposal from the government’s Task Force for Power Sector Reforms to terminate its power purchase agreements (PPA) early, ahead of their original 2032 expiration. This development was initially shared by Crescent Steel and Allied Products Limited, RPPL’s parent company, in a notice to the Pakistan Stock Exchange (PSX) under regulatory requirements.
Altern Energy Limited (AEL) holds a majority share of 59.98% in RPPL through its subsidiary, Power Management Company (Private) Limited, with Crescent Steel and Allied Products Limited and CS Capital (Private) Limited collectively holding 17.6% of shares in AEL.
