Hub Power Company Signs Settlement to Terminate Contract With Govt

The Hub Power Company Limited (PSX: HUBC) has signed a settlement agreement to terminate its contract with the federal government for its 1292 MW power generation project in Balochistan. “Upon the request of the Task Force constituted under the Prime Minister’s Office, The Hub Power Company Limited, in the greater national interest, has initialed a Negotiated Settlement Agreement with regard to the accelerated expiry on October 1, 2024, of its relevant agreements scheduled to expire in March 2027, relating to the Company’s 1292 MW power generation project located at Mouza Kund, Post office Gaddani, District Lasbella, Balochistan. This project achieved COD in 1996. Pursuant to the terms of the Agreement, GOP and CPPAG have agreed to settle the Company’s outstanding receivables up till October 1, 2024. The Board has agreed to the terms of the settlement and authorized the execution of a definitive agreement in respect thereof. The Company shall accordingly keep the PSX informed in respect of material developments in this regard, if any, the filing added. The settlement amount to IPPs that are being terminated will be received in 90-120 days, Topline Securities said in a brief note.