A consortium led by the UK’s National Power has submitted the highest bid for a 26 per cent stake in the state-owned Kot Addu power plant. Bidding took place on 27 March for the 1,600-MW power station near Multan in Punjab. National Power valued the plant at $1,583 million. Industry sources say that National Power’s bid has been accepted.
The second highest evaluation was submitted by Southern Electric of the US, at $1,355 million. AED Consortium, led by CMS Energy Corporation of the US, valued the plant at $1,355 million and British Gas (BG) submitted an evaluation of $1,119 million. The government’s Privatisation Commission has released the bidders’ evaluations of the plant but not the actual amounts bid. Both AED and BG have attached conditions to their bids.
The successful bidder will assume the plant’s management and debts amounting to $756 million. The deal will include a power purchase agreement with the Water & Power Development Authority (WAPDA) and fuel supply agreements with Pakistan State Oil and Sul Northern Gas Pipelines.
WAPDA will retain a 74 per cent stake in the plant. The Privatisation Commission hopes to conclude the deal in May (MEED 15:3:96).