Kot Addu Power Company Limited (KAPCO) has received shareholder approval to sell its Gas Turbines GT-3 and GT-4, along with associated components, to Rizwan Steel (Private) Limited for Rs800 million.
The power producer disclosed the development in its notice to the Pakistan Stock Exchange (PSX) on Wednesday.
“The consent of shareholders of Kot Addu Power Company Limited be and is hereby accorded to the disposal of plant and machinery of the company comprising Lot-1 (Gas Turbines (GT-3 and GT-4)) along with associated parts and components to Rizwan Steel (Private) Limited at a price of Rs800 million, subject to requisite approval(s) as per details given in statement of material facts,” read the notice.
KAPCO informed that Shahab Qader Khan, Chief Executive and/or Adolf Anthony Rath, company secretary, are authorised to dispose of the plant and machinery and to act on behalf of the company “in doing and performing all acts, matters, things and deeds to implement the disposal and the transaction contemplated by it”.
Last month, KAPCO signed a Tri-Partite Power Purchase Agreement (TPPA) along with the schedules with the Central Power Purchasing Agency (Guarantee) Limited (CPPA-G) and National Grid Company of Pakistan Limited to govern electricity sales from KAPCO’s power plant.
Incorporated in Pakistan on April 25, 1996, as a public limited company, KAPCO’s principal activities are to own, operate and maintain a multi-fuel fired power station with fifteen generating units with a nameplate capacity of 1,600 MW in Kot Addu, Punjab.
The company sell the electricity produced to a single customer, the Water and Power Development Authority (WAPDA) under a Power Purchase Agreement (PPA).
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