Nishat Chunian Power Limited (NCPL), an Independent Power Producer (IPP), has formally executed an Amendment Agreement related to the ‘Hybrid Take and Pay’ model, as previously communicated to the Pakistan Stock Exchange (PSX) in December 2024.
In a notice issued to the PSX on Tuesday, the company confirmed that the agreement has been finalised in accordance with the disclosed terms.
“Further to our letter No. NCPL/PSX/10081-82 dated December 04, 2024, we would like to inform you that the Company has formally executed the Amendment Agreement on the terms already disclosed to the PSX through the above-referred letter,” read NCPL’s notice.
On December 04, 2024, NCPL board approved amendments to its Power Purchase Agreement (PPA), Implementation Agreement, and tariff structure. The amendments include converting the existing tariff to a ‘Hybrid Take and Pay’ model.
NCPL entered into a Power Purchase Agreement (PPA) with its sole customer, Central Power Purchasing Agency (Guarantee) Ltd (CPPA-G) on July 21, 2010, for twenty-five years.
The revised agreement, effective from November 1, 2024, introduces changes to the indexation mechanism, rebases tariffs for operations and maintenance (O&M), and implements a hybrid return on equity model.
Key terms of the amendments include capping the insurance premium tariff at 0.9% of EPC cost, profit sharing until FY23 to be adjusted against receivables, and unconditional withdrawal of arbitration under Arbitration Submission Agreements (ASA) by the government.
Nishat Chunian Power Limited is a public company incorporated on February 23, 2007 under the repealed Companies Ordinance, 1984 (now Companies Act, 2017). The principal activity of the company is to build, own, operate and maintain a fuel fired power station having gross capacity of 200 MW and net capacity of 195.722 MW.
Moreover, Pakgen Power Limited has also formally executed the Negotiated Settlement Agreement to terminate the Power Purchase Agreement, Implementation Agreement, and Guarantee.
Pakgen Power owns, operates and maintains an oil-fired power station with a gross capacity of 365 MW in Mehmood Kot, Muzaffargarh, Punjab.
