ISLAMABAD (PEN) : Mira Power Limited (MPL), the South Korean company behind the 102 MW Gulpur power project, has signaled its readiness to take legal action on an international stage if the National Electric Power Regulatory Authority (Nepra) does not comply with the Power Purchase Agreement (PPA) terms regarding tariff calculations and dollar indexation.
In a recent letter to the Power Division, MPL voiced concerns about Nepra’s handling of the Commercial Operations Date (COD) tariff adjustment, highlighting inconsistencies with the agreed-upon PPA terms. According to the agreement, signed on September 3, 2015, with the Central Power Purchasing Agency (CPPA-G), MPL is entitled to an EPC-stage tariff, which Nepra approved in 2015. The company insists that any adjustments should follow the contractual mechanisms outlined in the PPA.
MPL argues that calculating the COD tariff is a matter of contract, not Nepra’s discretion. This stance is supported by a recent arbitration decision concerning another hydropower project in Azad Jammu and Kashmir.
The company’s main concern is that Nepra might convert costs incurred in US dollars to Pakistani Rupees without proper foreign exchange indexation, which they believe violates both the PPA and the Power Generation Policy of 2002.
The South Korean Embassy has also stepped in, writing to Nepra’s Chairman and urging adherence to the original PPA terms. The embassy cautioned that non-compliance could compel MPL to seek arbitration to safeguard its contractual rights.
While MPL hopes for a peaceful resolution through the Power Division’s involvement, they are prepared to take legal action to protect their interests if necessary.
