ISLAMABAD: The Central Power Generation Company Limited (CPGL) has decided to outsource the Operations and Maintenance (O&M) of the 747 MW Combined Cycle Power Plant (CCPP) at Guddu Power Plant. This plant has been the focus of discussions in various forums due to several incidents that have caused millions of dollars in financial losses to the national exchequer.
Well-informed sources told NewzShewz that CPGL has formally submitted a proposal to the Privatization Commission regarding the outsourcing of the plant’s O&M. The Commission has made several recommendations for the O&M agreement.
According to sources, the Privatization Commission has proposed reducing the notice period for termination at the company’s convenience from 180 days to 90 days or less for the O&M contractor. This reference is made in clause 24.1 B of the draft agreement.
Additionally, the Commission believes that, given the agreement period of 12 years, there should be no early termination penalty if the company chooses to terminate the agreement at any time during the contract period, provided a termination notice is given.
Furthermore, the Privatization Commission has suggested that the agreement include a “safe exit” clause, ensuring that there will be no financial impact on the company’s financial statements in the event of early termination, which must be unconditional. Ends
