A participant of the meeting on condition of anonymity stated that total amount on account of damages was estimated at Rs 1.5 billion and the meeting decided that the plant would be provided gas against the damages. A statement issued after the meeting stated that the CCoE approved settlement of liquidated damages of Rousch Power (Pakistan) Limited on the principles that the period during which the operation of the power plant remained suspended due to non-availability of fuel would be declared as 'Other Force Majeure Event (OFME)' and the term of the PPA would be extended correspondingly to OMFE period.
The capacity payments made during the period would be recovered through adjustment against the late payment interest invoices of the company along with the late payment interest at the rate of 50% of the total interest worked-out up to the date of settlement agreement in lieu of waiving off right of the company to claim interest.
The meeting decided that the period during which the IPP was unable to make available the capacity and net electrical output on account of non-supply of gas would be treated as an 'Other Force Majeure Event (OFME)' under the PPA.
Accordingly, the company would not be entitled to capacity payments during such period and the power purchaser would not be entitled to impose LDs on the company.
On a summary submitted by the Ministry of Water Resources, the CCoE also approved a report of the Ministry of Water Resources for mitigating adverse effects on the quality of river water because of less flows and reduction in water supply for Muzaffarabad city due to Neelum-Jhelum Hydropower project. The CCoE further approved amendments to decisions of the Cabinet Committee on Energy held on February 27 2019.