Lalpir Power and Hubco to terminate key agreements before term

Lalpir Power is considering early termination of several critical agreements. These include the Implementation Agreement, Power Purchase Agreement, and Guarantee with the Government of Pakistan and the Central Power Purchasing Agency.

Originally set to expire on November 28, 2028, these agreements may now conclude ahead of schedule, subject to shareholder approval, company’s board of directors discussed at an extraordinary meeting on October 9^th.

Lalpir board has decided to present the proposed terms to shareholders for ratification and has authorized senior executives to organize an Extra-Ordinary General Meeting (EOGM).

The early termination is contingent upon shareholder consent and the formal execution of the agreement with the power purchaser and the government.

In a related move, the Board of Directors of the Hub Power Company (Hubco) has also called an emergency meeting on Thursday. They will consider the premature termination of their company implementation agreement, power purchase agreement, fuel supply agreement, and guarantee, which were initially scheduled to expire in March 2027.

Earlier reports suggest that the government has successfully negotiated early termination agreements with four Independent Power Producers (IPPs): Atlas Power, Saba Power, Rousch Power, and Lalpir Power. HUBCO is anticipated to join this list shortly.

The Task Force on Power Sector, comprising senior security officers, legal experts, and representatives from SECP, PPIB, CPPA-G, and Nepra, was instrumental in these negotiations.