The Hub Power Company Limited has reached a Negotiated Settlement Agreement with the federal government for the early termination of its 1292 MW power generation project in Balochistan. This decision, made at the request of a Task Force under the Prime Minister’s Office, is aimed at serving the greater national interest.
The agreement pertains to the accelerated expiry of relevant contracts on October 1, 2024, which were originally set to expire in March 2027. The power project, located at Mouza Kund, Post Office Gaddani, District Lasbella, Balochistan, has been operational since achieving its Commercial Operation Date (COD) in 1996.
Under the terms of the settlement, the Government of Pakistan (GOP) and the Central Power Purchasing Agency (Guarantee) Limited (CPPAG) have agreed to settle the company’s outstanding receivables up to October 1, 2024. The Board of Hub Power Company has approved the settlement terms and authorized the execution of a definitive agreement.
The company has committed to keeping the Pakistan Stock Exchange (PSX) informed of any material developments related to this settlement. According to a brief note from Topline Securities, the settlement payments to Independent Power Producers (IPPs) affected by the termination are expected to be received within 90 to 120 days.
