Pakgen Power has received an amount of PKR5,535 million from the power purchaser in the form of one-third cash, one-third Government Ijara Sukuk, and one-third Pakistan Investment Bond.
This amount constitutes the first installment of 40 percent of receivables at the cut-off date of November 30 2020. As per management, amount received will be used to clear short term borrowing and clear company’s payables.
A L S O | R E A D
IPPs received first tranche of circular debt
Pakgen Power has received this amount as an agreement signed with Central Power Purchase Authority (CPPA-G).
According to the agreement, the Company has voluntarily reduced its Capacity Purchase Price (CPP) and Variable O&M by 11 percent. Furthermore, 50 percent of the reduced CPP shall not be indexed with USD Exchange rate and US CPI. Whereas remaining 50 percent of reduced CPP shall continue to be indexed with USD Exchange rate and US CPI.