ENERGY
Narowal Energy Limited has formally executed the Amendment Agreement reached with the government last month, the Hub Power Company Limited (HUBCO) said in a notice to the Pakistan Stock Exchange (PSX) on Wednesday. Narowal Energy Limited is a wholly owned subsidiary of HUBCO.
The company’s notice said: “Upon the request of the task force constituted under the Prime Minister’s Office, to revise the tariff and to convert the existing tariff to ‘Hybrid Take and Pay’ model, Narowal Energy Limited (NEL), a wholly owned subsidiary of the HUBCO, has executed an Amendment Agreement dated February 14, 2025 with the Government of Islamic Republic of Pakistan (GoP) and the Central Power Purchasing Agency (Guarantee) Limited (CPPA) to implement the proposed amendments.”
Salient terms and conditions disclosed by the company:
– The Amendment Agreement shall be effective from November 1, 2024.
– The 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
– CPPA will make the payment of outstanding receivables as of October 31, 2024, within 90 days of approval of the agreement by the cabinet
– Waiver of outstanding late payment interest as of October 31, 2024, and
– LCIA Arbitration clause in PPA will be substituted with Islamabad-seated arbitration under the local laws
ER REPORT
