SPL seeks CPPA-G support for release of pending sales tax refund

Saif Power Company Limited (SPL), which owns a 225MW power plant, has sought support from Central Power Purchasing Agency (Guarantee) Limited (CPPA-G) for the release of its pending sales tax refund from the Federal Board of Revenue (FBR). In a letter to the Chief Executive Officer of CPPA-G, the Chief Financial Officer of SPL referred to the Power Purchase Agreement (PPA) dated April 30, 2007, and the Master Agreement (MA) of February 11, 2021, signed between the company and CPPA-G, the power purchaser, as novated through a Novation Agreement involving National Transmission and Despatch Company. According to the company, its financial position has significantly deteriorated following the amendment agreement signed on February 28, 2025, particularly due to the one-time waiver of delay payment interest amounting to Rs1.36 billion.