Hub Power Company Signs Settlement to Terminate Contract with Government
Ruhail Mohammad Appointed as CEO for Hub Power Holdings Limited
The Hub Power Company Limited (PSX: HUBC) has signed a settlement agreement to terminate its contract with the federal government for its 1292 MW power generation project in Balochistan.
“Upon the request of the Task Force constituted under the Prime Minister’s Office, The Hub Power Company Limited, in the greater national interest, has initialed a Negotiated Settlement Agreement for the accelerated expiry on October 1, 2024, of its relevant agreements scheduled to expire in March 2027, relating to the Company’s 1292 MW power generation project located at Mouza Kund, Post Office Gaddani, District Lasbella, Balochistan. This project achieved COD in 1996,” the company stated.
Pursuant to the terms of the Agreement, the Government of Pakistan (GOP) and Central Power Purchasing Agency (Guarantee) Limited (CPPAG) have agreed to settle the Company’s outstanding receivables up to October 1, 2024. The Board has approved the terms of the settlement and authorized the execution of a definitive agreement in respect thereof.
The Company will keep the Pakistan Stock Exchange (PSX) informed about any material developments related to this matter.
According to a brief note from Topline Securities, the settlement amount to independent power producers (IPPs) that are being terminated will be received within 90-120 days.
