Pakistan State Oil (PSO) has waived its late payment interest charges on overdue fuel supply payments from five Independent Power Plants (IPPs), whose agreements with the government have been terminated. The agreements for terminating the Power Purchase Agreements (PPAs) and Implementation Agreements (IAs) of these IPPs—HUBCO, Lalpir, Saba Power, ROUSCH, and Atlas Power—were formalised through Negotiated Settlement Agreements (NSAs). One of the key outcomes of these negotiations is the upcoming transfer of the ROUSCH power plant to the government of Pakistan by December 31, 2024. Key termsUnder the settlement agreements, the government and the IPPs have agreed on several important points. A notable concession made by the IPPs is the waiver of past late payment interest, and the parties have agreed that no payments will be made in relation to any expert determinations or arbitration awards in favour of the IPPs.

Source: The Express Tribune October 22, 2024 15:41 UTC