The Federal Cabinet has allowed the financial evaluation of 425MW Nandipur Power Plant (NPP), with a potential of 525 MW, and 747MW Guddu Power Plant (GPP) to be used in subsequent privatisation of both power plants.
Privatisation Division has also proposed that in the event of moving forward with privatisation of the GPP and NPB, the concerned ministries may be directed to take necessary actions to resolve the problems hampering privatisation of these power plants. The Cabinet Committee on Privatisation (CCoP), while approving the proposal, directed Privatisation Division to continue the process of financial evaluation of Nandipur and Guddu power plants along with their assets.
During a recent meeting when the CCoP decision was placed before the Federal Cabinet for ratification, Cabinet Secretary Sardar Ahmad Nawaz Sukhera, suggested that in the case titled ‘Privatisation of Guddu Power Plant & Nandipur Power Plant’, the option of equity transfer to PSO against its receivables may not constitute ‘privatisation’, as it would be a transaction between two government entities, and the legal position may be rechecked from the ‘modes of privatisation’ given in the Privatisation Commission Ordinance, 2000.
During the meeting it was also highlighted that in such a case the evaluation should be done by a third party for a fair estimate.