Rousch Power ‘fast-tracks’ exit from govt contract

KARACHI: Rousch (Pakistan) Power Limited (RPPL), an independent power producer (IPP), has approved the early termination of its long-term agreements with the government, initially set to expire in 2032. The decision was announced by RPPL’s parent company, Altern Energy Limited, in a notice submitted to the Pakistan Stock Exchange (PSX) on Wednesday.

It said that Rousch’s shareholders have decided to exit from their long-term contracts with the government earlier than the original end date of 2032, and they have given management the authority to negotiate the specific terms for this exit.

The notice read: “In pursuance of material information provided to the PSX via letter no AEL/BOD/25/24 dated October 21, 2024, it is hereby informed that the shareholders of…RPPL, in their extraordinary general meeting held on November 11, 2024, have approved the proposal for early termination of the power purchase agreement (PPA) with the Central Power Purchasing Agency (Guarantee) Limited (CPPA), the implementation agreement (IA) with the government of Pakistan, and the guarantee issued by the government of Pakistan. They have authorised the management to execute a negotiated settlement agreement in this regard.”

According to the notice, as per the agreed terms, all receivables as of September 30, 2024, will be paid by CPPA by December 31, 2024. RPPL is scheduled to transfer the power complex to the government by the same date.