RLNG power plants owned by NPPMCL: BoI engaging ADQ and IHC to ascertain their interest

ISLAMABAD: The Board of Investment (BoI) is reportedly engaging Abu Dhabi Development Holding Company (ADQ) and International Holdings Company (IHC) to ascertain their interest in acquiring RLNG power plants owned by National Power Parks Management Company - Private Limited (NPPMCL), well-informed sources told Business Recorder.

The NPPMCL was put on active privatisation list on October 31, 2018 and the due diligence for the transaction was timely completed by Financial Advisory Consortium (N/s Credit Suisse) in Sept 2019. The Road Shows were also held at UAE and Qatar in December 2020. The privatization process was interrupted by COVID- 19 outbreak (in 2020 & 2021) and due to the encumbrances associated with the entity.

Presently efforts are underway to ascertain interest from potential investors globally. To facilitate investors and for expeditious processing of the transaction, Government has also enacted Inter-Governmental Commercial Transactions Act 2022, and meetings have been held with potential international investors.

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Prime Minister, in the meeting held on February8, 2023 has also directed Power Division to follow up with TAQA-UAE.

Meanwhile, the BoI in its correspondence of March 6, 2023 emphasized that ADQ and IHC will be engaged to assess their interest in acquiring NPPMCL.

Privatisation Commission in a letter to BoI claimed that it is making all out efforts for sale of NPPMCL, adding that PC also looks forward to BoI to facilitate as per its mandate in the maximum outreach to potential investors. As per the advice from BoI, PC will be available for conducting investor conference/road show along with Power Division at the destination(s) recommended by Board of Revenue.

According to sources, previous efforts of Privatisation Commission to sell two RLNG-fired power plants to Qatar or Saudi Arabia have not succeeded, after which more focus is being given on UAE companies.

Copyright Business Recorder, 2023