Hubco initiates settlement agreement for termination of contracts

The Hub Power Company Limited (Hubco) has initiated a negotiated settlement agreement regarding the accelerated expiry of its agreements on October 1, 2024, it said in a filing to the Pakistan Stock Exchange (PSX).

These agreements, originally scheduled to expire in March 2027, relate to Hubco's 1292 megawatts power generation project at Mouza Kund, Post office Gaddani, District Lasbela, Balochistan, which achieved COD in 1996.

In the backdrop of the Pakistani government's ongoing efforts to terminate contracts with Independent Power Producers (IPPs) to alleviate financial burdens, the government and Central Power Purchasing Agency (CPPA-G) have agreed to settle Hubco's outstanding receivables up till October 1, 2024.

Upon the request of the task force constituted under the Prime Minister's Office, the board has approved the terms of the settlement and authorized the execution of a definitive agreement.