Jamshoro Power Company Limited

Jamshoro Power Company Limited (JPCL) 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 two thermal power stations namely Jamshoro and Kotri with a total nameplate capacity of 1054 MW. The company was incorporated in August 1998 as a public limited company under Pakistan Companies Ordinance 1984.
JPCL presently holds the properties, right and assets of two power stations as follows:

Jamshoro Steam Power Plant	880 MW
Kotri Gas Turbine Power Plant	174 MW
Total:	1054 MW

· Jamshoro power station has a technical configuration of 4 Sets and a total nameplate capacity of 880 MW: Set 1 is rated at 250 MW while 2,3 and 4 are rated at 210 MW. Boiler 1 is fired on heavy fuel oil while boilers 2,3 and 4 have duel-fuel (furnace oil/gas) firing capability;

· Kotri power station has a technical configuration of 6 gas-fired generation Sets with a total nameplate capacity of 174 MW. Sets 1 and 2, each rated at 15 MW, are open cycle; while 3,4,5 and 6, rated at 25 MW each, exhaust into Set 7--a heat recovery steam generator with a capacity of 44 MW. Effectively, Sets 3-7, together, are a single Combined Cycle Gas Turbine (CCGT) unit with 144 MW of nameplate capacity. All six gas turbines are capable of dual-fired fuel operation (Gas / High Speed Diesel). By policy since 1995, all use natural gas as the primary fuel-with operation on high-speed diesel reserved for emergencies only.

JPCL 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 lease of Thermal Power Stations (TPS) at Jamshoro & Kotri of the JPCL to investors, companies or a consortia having net worth US$ 100 million, demonstrable experience in management, rehabilitation, operation and maintenance of power generation facilities for concession on “lease basis” of JPCL facilities and assets for a period of 15 years. The prospective investor will be required to rehabilitate the generation facilities to their ‘name-plate-rated’ capacity.

· Strategic Position in the Pakistan Grid: JPCL 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: JPCL 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.

· Regulatory Framework: JPCL 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.

· Facilities of JPCL shall not be used for any other purposes other than power generation and the investor shall ensure the continuity of power supply to the national grid.

The lease transaction commenced with invitation of Expression of Interests (EoIs) on February 25, 2009 from parties interested in management, rehabilitation, operation and maintenance of power generation facilities on “lease basis” for a period of 15 years. All parties submitting EOIs will be provided Preliminary Information memorandum (PIM) and Request for Statement of Qualification (RSOQ).

The RSOQ will, inter-alia, include details on eligibility criteria and basis of disqualification. The Privatisation Commission will provide updated information relating to terms and conditions of the ‘lease’ to all investors qualified in terms of the Privatisation Commission’s RSOQ, prior to the bid date. Interested parties will submit SoQs by the closing date for evaluation and pre-qualification for bidding. The parties thus pre-qualified to be allowed access to the data room for due-diligence.