The government’s Privatisation Commission has shortlisted six groups to bid for a 26 per cent stake with management control in the 880-MW Jamshoro power station. The companies will be invited to carry out due diligence during August and details of the transaction will be finalised by the end of September, clearing the way for bidding to take place in mid-October, the commission says.
The shortlisted companies, all US, are CMS Generation and Unical, which are to submit a joint bid, Southern Electric International, Eddison Mission Energy, Energy Initiative, NRG, and AES Pak Gen, which is a local subsidiary of AES of the US.
The commission expects to complete a transaction before the end of the year (MEED 7:6:96).
The commission says that a proposal to sell a larger stake in the plant was rejected by the government. However further stakes may be sold in the future and are likely to take the same form as future sales in the Kot Addu power station. The commission is currently examining the possibility of selling an additional stake in Kot Addu to the UK’s National Power (NP). NP purchased a 26 per cent stake in the station in June and submitted a bid for a further 10 per cent stake, which the commission is now examining. A 10 per cent stake may also be sold through a public offering that could raise about $100 million, although no final decision has been taken.