Updated:
18/10/24 08:16
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News
Lalpir Power approves premature termination of key contracts
October 15, 2024 (MLN): The shareholders of Lalpir Power Limited (PSX: LPL) have approved the premature termination of certain critical contracts, effective October 1, 2024, based on the terms set by the Task Force.
The contracts terminated include the Implementation Agreement, Power Purchase Agreement, Fuel Supply Agreement, and related Guarantee.
The Company's Implementation Agreement was made on September 24, 1994, with the President of the Islamic Republic of Pakistan, for and on behalf of the Islamic Republic of Pakistan.
The Power Purchase Agreement was entered with WAPDA on November 03, 1994.
Moreover, the predecessor of the Central Power Purchasing Agency (Guarantee) Limited and the guarantee were issued by the President of the Islamic Republic of Pakistan on May 16, 1995.
This comes after Hub Power Company Limited (PSX: HUBC), in the greater national interest, also decided to initiate a Negotiated Settlement Agreement with regard to the accelerated expiry on October 1, 2024.
It is worth noting that LPL called for an emergent board meeting to discuss the premature termination of some critical contracts.
An early termination of these contracts reflects a strategic shift related to power generation, payments, or fuel supply.