Islamabad: In a significant development, The Hub Power Company Limited has announced a negotiated settlement agreement that will see the accelerated expiry of its 1292 MW power generation project agreements at Gaddani, scheduled for March 2027, now concluding on October 1, 2024. This adjustment follows a directive from a Task Force under the Prime Minister's Office, emphasizing the project's national importance.

The agreement involves the early termination of specific contractual obligations related to the Gaddani project, which achieved commercial operation in 1996. The settlement was ratified following negotiations between the Government of Pakistan (GOP), the Company, and the Central Power Purchasing Agency Guarantee Limited (CPPAG).

According to information available from the Pakistan Stock Exchange (PSX), the terms of the settlement include the resolution of outstanding receivables due by October 2024. The Board of Directors of Hub Power Company has endorsed the definitive agreement terms, which are aimed at conclusively settling the company's financial accounts associated with the project.

As part of the disclosure obligations, the company has committed to keeping the Pakistan Stock Exchange informed of any further material developments concerning this settlement. The Exchange members have been advised to disseminate this information accordingly, ensuring transparency and compliance with regulatory requirements.

This strategic move is expected to streamline the operational and financial framework of the Hub Power Company, aligning its resources towards more viable ventures and enhancing shareholder value in the long term.