The government’s Privatisation Commission says that bidding for a 26 per cent stake in the Kot Addu Power Company is expected to take place at the end of March. The company runs the 1,600-MW Kot Addu thermal power station near Multan in Punjab. The successful bidder will also take over management control of the plant.
The commission says that legal documents concerning the sale have now been completed after extensive talks with the bidders. The documents include a power purchase agreement with the Water & Power Development Authority (WAPDA);
fuel supply agreements with Pakistan State Oil and Sui Northern Gas Pipelines; a facilitation agreement with the government and a shareholders’ agreement, which guarantees the buyer management control, even though WAPDA will retain a 74 per cent stake in the company.
Four groups are prequalified to bid. They are: National Power and British Gas, both of the UK, the AED Consortium, which is led by CMS Energy Corporation of the US, and Mission Energy, also of the US.
Mission Energy has informed the commission that it will not be bidding, but is interested in submitting a bid for the Jamshoro power station. Prequalification for Jamshoro is due to take place after Kot Addu bidding has been completed (MEED 9:2:96).
The sale of Kot Addu should be closed in May, the commission says.