ISLAMABAD: The Power Division has sought exemption from PPRA Rules for procurement of various services required by the NPPMCL for taking over of Rousch Power Plant Complex (RPPC).
Sharing the details, sources told Business Recorder that Prime Minister had constituted a Task Force on implementing structural reforms in the power sector on August 4, 2024.
Based on the recommendation of the System Operator, the Task Force in its presentation to the Prime Minister on September 2, 2024 and subsequent briefing to the Cabinet on September 4, 2024, made its submission to terminate 5 IPPs including Rousch Pakistan Power Limited (RPPL) in order to reduce capacity payments and consumer tariff.
Rousch Power transfers complex to government entity after CPPA settlement
Pursuant to negotiations, a settlement was reached with the 5 IPPs, including RPPL, whereby it was agreed that against payment of respective settled amount, Power Purchase Agreements (PPAs) and Implementation Agreements (IAS) shall be terminated.
As RPPL was built under Build Operate, Own and Transfer (BOOT) basis, therefore, in addition to above it was also agreed that the complex and site of RPPL shall be transferred to the Federal Government or its “designated entity” at the consideration of one United States Dollar.
Accordingly, while approving this settlement in the above terms, the Cabinet on a Summary initiated by Power Division, in Case No. 291/33/2024 dated October 10, 2024, also appointed National Power Parks Management Company Limited (NPPMCL) as the “Designated Entity”.
In response, NPPMCL gave a detailed presentation to the Task Force on November 19, 2024, and submitted a comprehensive taking-over plan with actions and timelines.
The Task Force advised NPPMCL to work out the cost required for taking-over the complex and site along with the facilitation required from the Federal Government to ensure timely compliance of Cabinet decision i.e. on or before December 31, 2024.
During another meeting of the Task Force held on December 06, 2024, NPPMCL apprised about the estimated cost required for taking-over the complex and site, transfer of land and preserving the plant for a period of 6 months, besides presenting various options for operating the plant.
However, as per Task Force’s directives, the plant was not required to be operated for the time being and accordingly, NPPMCL was required to rationalize the costs of maintaining the complex in dry-preservation mode for a period of 6 months only, which was to be scrutinized/examined by the Power Division.
NPPMCL presented rationalized costs to the Power Division vide letter dated December 09, 2024.
Accordingly, the Task Force deliberated the revised costs, actions required for compliance of Cabinet decision and the respective timelines in the meeting held on December 18, 2024, and considered it to be justified and that the points raised by NPPMCL are necessary for taking-over and keeping the RPPL complex in dry-preservation mode for a period of 6 months and hence recommended its approval.
According to the valuation report of the Plant dated June 23, 2023, obtained by NPPMCL from RPPL, the fair market values and forced sale values of the RPPL’s plant, land and buildings would be on “Going Concern” basis.
The Power Division has sought approval of grant of Rs. 1095.61 million (exclusive of taxes) to meet the accrued and future expected expenses to be incurred by NPPMCL for transfer of Site and keeping the Complex of RPPL in dry-preservation mode for the period of 6 months, ie, from January 01, 2025, to June 30, 2025.
Copyright Business Recorder, 2025
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