Govt acquires 450MW gas power plant for $1

ISLAMABAD: The federal government has acquired 450 MW gas-fired Rousch Pakistan Power Limited (RPPL) owned by Razzak Dawood, former commerce minister, at US $1. The plant was built under Build Operate, Own and Transfer (BOOT) basis.

National Power Parks Management Company Limited (NPPMCL) as a designated entity on behalf of the federal government will take over RPPL on the recommendations of the task force on power. As RPPL was built under a Build Operate, Own and Transfer (BOOT) basis, therefore, it was also agreed that the complex and site of RPPL shall be transferred to the federal government or its “designated entity” at the consideration of USD.

According to the Power Division’s summary, the federal cabinet has been requested to approve an amount of Rs1.096 billion (exclusive of taxes) to meet the accrued and future expenses to be incurred by the NPPMCL for the transfer of site and keeping the complex of RPPL in dry-preservation mode for six months from January 1, 2025, to June 30, 2025.

Rousch Pakistan Power Limited (RPPL) was among the first 5 IPPs whose contracts were terminated on the recommendations of the task force to reduce capacity payments and consumer tariffs, discloses the summary. However, as per Task Force’s directives, the plant was not required to be operated for the time being and accordingly, NPPMCL was required to rationalize the costs of maintaining the complex in dry-preservation mode for 6 months only, which was to be scrutinized/examined by the Power Division.