The Karachi Electric Supply Company, in a press release issued here on Wednesday, stated that the DHA Cogen (DCL) had started reliability test on Tuesday, as per the procedure agreed by both parties under the directions of the Cabinet Committee on the Energy Crisis. Commenting on a news item appearing in Business Recorder on October 14, the press release said that the KESC had suspended capacity payments to DCL in September 2008 for failure by DCL to supply electricity.
Furthermore, following the consistent failure of DCL to cure its defaults under the PPA, KESC terminated the PPA in April 2009, and submitted a claim of over Rs 700 million for liquidated damages due from DCL for failure to provide capacity, the release added. There has been no reduction in the penalty amount and KESC has not withdrawn its claim for liquidated damages, as claimed by the said news item, the release added.-PR