RLNG-based power plants cleared for privatisation

ISLAMABAD: The government on Wednesday approved the privatisation of National Power Parks Management Company (NPPMCL) that operates Pakistan’s maiden re-gasified liquefied natural gas- (RLNG) based power plants.

The Cabinet Committee on Privatisation (CCOP) took the decision during a meeting presided over by Finance Minister Asad Umar. Secretary Privatisation Division apprised the meeting about privatisation process of public sector entities on the active privatisation list, including RLNG power plants: 1,233 megawatts of Balloki and 1,230MW Haveli Bahadurshah operating under NPPMCL, Lakhra Coal Mines and Services International Hotel.

The Council of Common Interest has already approved privatisation of the plants. Matters relating to divestment of government’s residual shares in Mari Petroleum Company also came under the discussion. The committee approved divestment of residual government’s shares of 18.39 percent in Mari Petroleum Company. The shares will be offloaded to the private sector in short-term through capital market. A senior official told The News that divestment of shares in the petroleum company would not be a sane decision at the time when international oil prices are plummeting.

Federal cabinet, which is scheduled to meet on Thursday (today), would give its final nod on the decisions taken at the CCOP’s meeting. On Lakhra coal mines, the committee said its privatisation process might be pursued only after decision by the Supreme Court since the matter is sub judice.

The committee also discussed disputes between K-Electric and two state-run entities, including National Transmission and Despatch Company and Sui Southern Gas Company.

The committee was told that the K-Electric’s selloff issue has been in the state of impasse since 2016. China’s Shanghai Electric Power Company Limited earlier this week made a fresh announcement fourth time to acquire majority stake in K-Electric Limited from the Dubai-based Abraaj Group – a couple of days after the Chinese power firm withdrew the acquisition offer on delayed regulatory approvals.

In August 2016, Shanghai Electric Power made headlines with a public announcement of intention to buy over 66 percent stake in K-Electric against an estimated $1.7 billion. In June 2017, the public announcement had to be recalled for the same reason. Later in June last year, the Chinese company returned with a fresh public announcement of intention for the same. In March, the Chinese firm had to relaunch its offer only a day after yet another withdrawal of offer on differences over multiyear tariffs and delay in other approvals.

The cabinet committee also discussed progress on the proposed transaction of the national security certificate.