Altern Energy Subsidiary Decides to Terminate Power Contract With Govt

Rousch (Pakistan) Power Limited (RPPL), a subsidiary of Power Management Company (Private) Limited, has referred the federal government’s proposal for early termination of its Power Purchase Agreement (PPA) to the shareholders for consideration and approval in the Shareholders’ Meeting. The Power Management Company (Private) Limited is a subsidiary company of Altern Energy Limited (PSX: ALTN). RPPL has a Power Plant established under the 1994 Power Policy. It has been engaged with the Task Force for Power Sector Reforms formed by the Government of Pakistan (the Task Force). RPPL has received a proposal from the Task Force for Early Termination of its Power Purchase Agreement (PPA) entered into with the Central Power Purchasing Agency (Guarantee) Limited (CPPA), Implementation Agreement entered into with the President of the Islamic Republic of Pakistan on behalf of the Government of Pakistan (IA), and the Guarantee issued by the Government of Pakistan (Guarantee), (the PPA, IA, and the Guarantee are hereinafter collectively referred to as the Agreements), before the end of their term in 2032. Under the terms being contemplated, RPPL will be paid its receivables by the off-taker, CPPA, and its Complex will be handed over to the Government as per the terms of the PPA. On October 18, 2024, RPPL’s Board of Directors referred the proposal for early termination of the Agreements to the Shareholders of RPPL for consideration and approval in the Shareholders’ Meeting.