Pakistan Power Division prepare recommendations for 11 oil-fired power plants Early termination


The Power Division has created a nine-member cross-functional committee to prepare recommendations for early termination of 11 oil-fired power plants of 3,300 MW installed under various policies committee will conduct legal, technical, and commercial due persistence of plants and offer a future course of action after carrying detailed analysis within the parameters of Implementation Understanding (IA) and Power Purchase Agreements.

“The committee negotiated with 11 oil-fired power plants and submitted its report to Secretary Power Division. It will also submit periodic status/ action report on monthly

basis,” the sources added.

among fears of NAB research as in a few other cases, well-informed sources told Business Recorder.

Headed by Additional Secretary-II of Power Division, the board will comprise of Managing Director PPIB, Director Legal, PPIB, General Manager, NPCC, General Manager( Power System Planning), NTDC, Chief Financial Officer, CPPA-G, Chief Legal Officer, CPPA-G, Chief Technical Officer, CPPA-G and Manager, Policy and Devising, CPPA-G.


The sources said, the government will buy all the 11 oil-fired power plants and shut them down.

“Early termination/buyout of these plants at discounted value estimated at Rs 150-200 billion to be paid via PIBs, Sukuks, etc will be a good deal for the government,” the sources continued.

According to Special Assistant to Prime Minister, Power and Petroleum, Tabish Gauhar, the government has also informed World Bank that the government was working on early termination/buyout of 11 oil-fired power plants at a decrease ted value, estimated at $ 1 billion. World Bank is examining this proposal and may lengthen financial support for it.

“If this solution is not adopted these projects would have to be paid Rs 450 billion in aggregate capacity changes over the remaining average seven years of their contracts,”the sources said

adding that with disposal of 11 oil-fired plants, a benefit of Paisa 60 per unit can be passed on to the consumers or at least the predicted increase can be done away with.