|
|
|
|
|
A pre-bid meeting is being held at Karachi Marriot Hotel at 1045 hrs on
March 01, 2006 (Wednesday) for the privatization of Jamshoro Power Company (JPC)
under the chairmanship of Dr. Abdul Hafeez Shaikh Federal Minister for
Privatisation & Investment.
The moot will deliberate upon the process and respond to the queries of the
prospective bidders for the privatization of JPC. The transaction is now at a
very advanced stage. the prospective bidders have completed their due
diligence in the dat room.
Jamshoro Power Company Limited (JPC) located in Sindh Province of Pakistan was
established as a result of the unbundling of Pakistan Water and Power
Development Authority (WAPDA). It was organized to take over all the
properties, rights, assets, obligations and liabilities of three thermal power
stations namely Jamshoro, Kotri and Lakhra with a total nameplate capacity of
1204 MW. The company was incorporated in August 1998 as a public limited
company under Pakistan Companies Ordinance 1984. Subsequently in June 2002,
the Lakhra Power Station with a nameplate capacity of 150 MW was spun out of
JPC into a new company, Lakhra Power Generation Company Limited. JPC has been
granted a Generation License by National Electric Power Regulatory Authority (NEPRA)
to engage in generation business pursuant to the Regulation of Generation,
Transmission and Distribution of Electric Power Act, 1997 (NEPRA Act).
The Government of Pakistan intends to sell a majority 51% interest in JPC
including management control to a strategic investor or a consortium of
strategic and financial investors. The GoP intends to hold 49% of the equity
beyond privatisation.
JPC facilities are located within the environs of Hyderabad with key
connections to the NTDC grid to enable power to be injected to major load
centers in the South of the country including Karachi. JPC facilities compete
with other grid connected power plants in Pakistan for position in the merit
order including hydel plants and would remain important part of overall
generation portfolio of Pakistan for many years to come. Power Purchase
Agreement (PPA): JPC is to be sold pursuant to a PPA with multi-year tariff to
be approved by NEPRA. The PPA has been carefully designed in accordance with
recognized international utility practice to allow full recovery of prudent
costs.The economic life of JPC assets if well maintained would extend beyond
the PPA term to offer extra value capture in post PPA. Regulatory Framework:
JPC would have the transparent oversight of NEPRA, Pakistan Power Sector's
independent regulator, established in 1997 to protect interests of both the
investor and the sector.