PAKISTAN
Altern Energy Limited has requested the Central Power Purchasing Agency (CPPA) to terminate its power purchase agreement due to continuous financial losses caused by the lack of dispatch demand from the off-taker.
In a notice to the Pakistan Stock Exchange, the company stated:
“In view of continuous operational losses suffered by the company as a result of no dispatch demand from the off-taker during the past several years, the Board of Directors has considered and agreed to submit a request to the Central Power Purchasing Agency (Guaranteed Limited) [CPPA] for the early termination of:
(i) the Power Purchase Agreement (PPA) entered into with CPPA,
(ii) the Implementation Agreement (IA) entered into with the President of the Islamic Republic of Pakistan on behalf of the Government of Pakistan, and
(iii) the guarantee issued by the Government of Pakistan.”
The Board of Directors has referred the proposal for early termination of the agreements to the company’s stakeholders for consideration and approval in the upcoming shareholders’ meeting.
Altern Energy Limited was incorporated in Pakistan as a listed public company limited by shares under the Companies Ordinance, 1984 (now the Companies Act, 2017. The principal activity of the Company is to build, own, operate and maintain a gas fired power plant. The Company has a Power Purchase Agreement (‘PPA’) with its sole customer, Central Power Purchasing Agency (Guarantee) Limited (‘CPPA-G’) for thirty years. . The Company also holds direct and indirect investments in other companies engaged in power sector. – Engineering Review Report
