ISLAMABAD: The Private Power & Infrastructure Board (PPIB) has given fourth extension in Letter of Support (LoS) to 700-MW M/s Azad Pattan Hydropower Project for another year starting from January 1, 2022.
The company was issued Letter of Support on June 30, 2016 as amended on September 19, 2018, September 27, 2019 and April 26, 2021.
The company requested for an extension in the Financial Closing Date and the competent authority has approved grant of 12 month extension in the Financial Closing Date up to December 31, 2022.
The Project Company submitted Bank Guarantee on March 30, 2022 amounting to $3,503,500/- and its amendment of April 15, 2022 valid up to March 31, 2023 issued by Industrial & Commercial Bank of China Limited, Islamabad Branch as per the requirements of PPIB. The performance guarantee was paid as non-refundable processing fee to PPIB along with a detailed Bar Chart to the satisfaction of PPIB identifying major milestones and specifying timelines of various activities to be performed and delivered during the extended period for achieving Financial Closing.
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According to PPIB, now the LoS has been amended subject to following terms and conditions: (i) the Project Company shall achieve the Financial Closing no later than December 31, 2022 under and in accordance with the terms of the LoS provided that due to such extension in the Financial Close Date the Project Company shall not claim nor shall be entitled to any additional cost from GOP/ AJ&K entities; (ii) in case the project company delays, defaults, or fails to achieve the Financial Closing by the extended Financial Closing Date under and in accordance with the terms of the LoS, PPIB in addition to any other actions set out in the LoS and the project agreements shall be entitled to encash the Performance Guarantee in full amount without any notice to or demand on the Project Company in accordance with the terms of the LoS; (iii) no waiver by the PPIB of any default by the Project Company in the performance of any of the provisions of the LoS shall operate or be construed as a waiver of any other or further default whether of a like or different character; (iv) the failure by the PPIB to insist on any occasion upon the performance of the terms, conditions, and provisions of the LoS, or time or other indulgence granted by the PPIB to the Project Company, shall not thereby act as a waiver of the breach, as acceptance of any variation, or as the relinquishment of any such right under the Policy, the Performance Guarantee or LoS, which shall remain in full force and effect; (v) the grant of time through this Amendment shall not affect in any way whatsoever the beneficiary’s rights under the Performance Guarantee and shall not affect in any way whatsoever the Guarantor’s liability there under or discharge the Guarantor or the Project Company from its obligations under the Performance Guarantee. The Guarantor’s obligations and or liabilities under the Performance Guarantee shall continue to be in full force and effect; (vi) this Amendment No. 4 to the LoS shall be treated as an integral part of the LoS to which it should be attached. The provisions of this Amendment No. 4 shall supersede the provisions of the LoS only to the extent of any inconsistency in relation to matters contained therein; (vii) this Amendment No. 4 to the LoS shall be effective from January 1, 2022; (viii) the Project Company represents & warrants to PPIB that it is duly authorized to accept, agree and enter into this Amendment No. 4 to the LoS and deliver and perform the same in accordance with its terms; (ix) save for as amended herein, all other terms and conditions of the LoS shall remain unchanged; and (x) Capitalized terms not otherwise defined herein shall bear the meanings as attributed thereto in the LoS and Performance Guarantee, as the case may be.
Copyright Business Recorder, 2022
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