Jamshoro Power Company Limited

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. As a result, JPC presently holds the properties, right and assets of two power stations as follows:

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.
 

• Strategic Position in the Pakistan Grid: 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.
• Merit Order: 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.
• Post PPA Value: 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.

PricewaterhouseCoopers Project Advisory Pte. Ltd. (PwC) is the Financial Advisor for the transaction supported by Beckar & Mchanzie and Orr Dignam & Co. as legal consultants and PB Power and A.F. Fergusons as technical and financial consultants. The marketing of the transaction commenced in February 2003 with invitation of Expression of Interests (EoIs) and Statement of Qualifications (SoQs) from parties interested in the privatisation of JPC. Interested parties submitting SoQs by the closing date were evaluated and pre-qualified for bidding. Subsequently, to allow more participants in the transaction, EOIs were invited in August 2004 from parties who had not submitted EOIs earlier and were interested in participating in the transaction. Twelve parties submitted EOIs but only four submitted the SOQs. The SOQs received were evaluated and parties thus pre-qualified have been allowed access to the data room for due-diligence