PSO waives interest for five IPPs

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 decision was announced after extensive negotiations between the Power Division, a task force, and the IPPs involved. 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). Under the settlements, PSO will receive a principal payment of approximately Rs14.8 billion from the power purchaser, which will offset the accrued late payment interest related to the HUBCO PPA and reverse a previous deduction made under an arbitration award. 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.