ISLAMABAD: The Directors of Hub Power Company Limited, in alignment with national interests, have decided to proceed with a Negotiated Settlement Agreement for the early termination of certain contracts, effective October 1, 2024.
These agreements, originally set to expire in March 2027, pertain to the company’s 1,292 MW power generation project located at Mouza Kund, Post Office Gaddani, District Lasbella, Balochistan, which commenced commercial operations (COD) in 1996.
As part of the settlement, the Government of Pakistan (GOP) and the Central Power Purchasing Agency Guarantee Limited (CPPAG) have agreed to resolve all outstanding receivables owed to the company up to October 1, 2024.
The Board of Directors has approved the settlement terms and authorized the execution of a definitive agreement, according to Mettis Global report.
This decision follows discussions initiated by a Task Force formed under the Prime Minister’s Office, in coordination with other Independent Power Producers (IPPs).
It is also noteworthy that HUBC convened an urgent board meeting yesterday to address the early termination of key contracts, including the Implementation Agreement, Power Purchase Agreement, Fuel Supply Agreement, and associated guarantees.
This early contract termination represents a strategic shift in areas related to power generation, payments, and fuel supply.
