Rousch (Pakistan) Power Limited (RPPL), a subsidiary of Power Management Company (Private) Limited, has referred a federal government proposal for the early termination of its Power Purchase Agreement (PPA) to its shareholders for consideration and approval. This decision will be discussed in an upcoming Shareholders’ Meeting.

Power Management Company (Private) Limited operates as a subsidiary of Altern Energy Limited (PSX: ALTN). RPPL’s power plant, established under the 1994 Power Policy, has been actively engaged with the Government of Pakistan’s Task Force for Power Sector Reforms.

The Task Force has proposed the early termination of RPPL’s agreements, which include the Power Purchase Agreement with the Central Power Purchasing Agency (Guarantee) Limited (CPPA), the Implementation Agreement with the President of the Islamic Republic of Pakistan on behalf of the Government of Pakistan, and the Government-issued Guarantee. These agreements are collectively referred to as the Agreements and are originally set to expire in 2032.

According to the proposed terms, RPPL would receive payment for its receivables from CPPA, and its power complex would be transferred to the government as stipulated in the PPA. On October 18, 2024, RPPL’s Board of Directors decided to forward this proposal to its shareholders for further consideration and approval.