The Privatization Commission informed that they has continued to keep foreign investors engaged in the government’s privatization plan for two RLNG-based power plants despite COVID-19 situation in Pakistan
Federal Minister Muhammad mian Soomro along with the Advisor to PM on Energy, Nadeem Baber attended number of meeting via video conferences during the current week with pre-qualified investment parties for the privatization of two RLNG-based power plants i-e Haveli Bahadur Shah and Balloki power plants.
National Electric Power Regulatory Authority (NEPRA) chairman also participated in the discussion, while Baber answered the queries raised by the investors.
The privatization of the two power plants, run by National Power Plant Management Company Limited (NPPMCL), was being carried out on priority basis. The impending legal and technical issues have been sorted out cordially with the provincial governments and line ministries.
These include true-up tariff by NEPRA, amendment in land conversion rules and water use agreement for power plants by government of Punjab, and alignment of gas supply and power purchase agreements by Power Division and Petroleum Division in the context of RLNG agreements, prevalent till 2025.
The relevant information has been uploaded on Virtual Data Room (VDR) for due diligence by the pre-qualified bidders. Presently investors’ due diligence was in progress, but physical site visits of the pre-qualified bidders could not be planned due to the current national and international lock-down situation as well as travel restrictions.
Pre-qualified bidders have requested for extension in the timelines due to the wake of the pandemic. The federal minister has indicated to review/reconsider the timelines based on facts/situational analysis and rapidly changing national and international market scenarios.