ISLAMABAD: Nishat Power Limited (NPL) has served notice of payment of overdue amount of Rs4.4 billion to the government of Pakistan (GoP) along with interest at delayed payment rates as provided under the applicable provision of Power Purchase Agreement (PPA).
According to the power firm, National Transmission and Despatch Company Limited (NTDCL) under the Power Purchase Agreement, dated November 13, 2007 between the Power Purchaser and Nishat Power Limited, has failed to make payment to the company as required under the PPA. Consequently, written demand for payment has been served on the Power Purchaser.
Therefore, in accordance with section 1.5.1 of the guarantee, CPPA-G has been notified that an amount of Rs4.4 billion is due and payable by the power purchaser under the PPA.
The power firm, in its letter has stated that it is constrained to deliver upon power purchaser this demand for payment as contemplated in terms of 1.5.1 of the Guarantee of January 3, 2008 in favour of the company issued by the President of Pakistan for and on behalf of the government of Pakistan. Capitalized terms used and not otherwise defined shall have the meanings given to them in the power purchase agreement of November 13, 2007 between the power purchaser and the company.
Section 9.6 (payment) of the PPA stipulates that the power purchaser must pay the company the undisputed amount shown on an invoice delivered in accordance with section 9.5 (billing) of the PPA on or before the 30th day following the day the invoice is received by the purchaser (due date). However, the power purchaser has failed to make payments of invoices amounting to Rs4,366,819,575 by the due dates of such invoices. Consequently, a payment default of the power purchaser has occurred and is continuing.
In view of the foregoing, the company has called upon the power purchaser to make payment to the company of the overdue and unpaid amount of Rs4,366,819,575 with the interest at delayed payment rate as provided under the applicable provisions of the PPA.
Copyright Business Recorder, 2022