The United Arab Emirates (UAE) has expressed its objective to get combined cycle 747-MW Guddu Power Plant (GPP), sources in Privatisation Commission told the media.
This intention came from the Department of Projects, headed by Sheikh Hamad Bin Khalifa Bin Mohammed Al Nahyan in a letter to Prime Minister Imran Khan.
“We understand that the Government of Pakistan is in the process of privatization of Guddu Power Plant and has already advertised, commenced, and appointed Financial Advisor. We express our intention in compliance with all procedural requirements to acquire the plant and look forward to working with Pakistan,” says the letter.
In this regard, Imran Khan is looking forward to undertaking an official visit to UAE shortly as the Ministry of Foreign Affairs has begun its preparation.
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Last month, Federal Cabinet approved the financial appraisal of the 747-MW Guddu Power Plant and 425-MW Nandipur Power Plant (NPP) (with the potential of 525 MW) for subsequent privatization.
The Privatisation Division also updated the Cabinet Committee on Privatisation (CCoP) regarding its procedures of both the combined cycle power plants and wanted to issue essential direction to the Ministry of Energy to get the decision of the Cabinet Committee on Energy (CCoE).
While approving the proposal, the CCoP directed Privatisation Division to carry on the procedure of financial evaluation of Nandipur and Guddu power plants in addition to their assets.
Meanwhile, after discussion with the Power Division and Finance Division, the Petroleum Division may examine the matter of equity transfer to PSO against its receivables and submit the issue to CCoE.
After the discussion, the Cabinet also approved the decision of CCoP in the case titled ‘Privatisation of Guddu Power Plant & Nandipur Power Plant’ with the condition that the financial appraisal of Nandipur and Guddu power plants be continued subsequent to CCoE’s decision.
Besides, Minister for Finance Shaukat Tarin and Minister for Energy Hammad Azhar emphasized that the privatization process should not be delayed and the PSO receivables could be settled from the profits of privatizing the two power plants.
