The Private Power & Infrastructure Board (PPIB) has issued an extension for the Letter of Support (LoS) to 700-MW M/s Azad Pattan Hydropower Project for another year starting from January 1, 2022.
The company had 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 had 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.
According to the terms of the new LoS 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