July 9, 2020: Another important meeting regarding privatization of power plants (NPPMCL) and related power sector reforms was held in the Ministry of Privatization under the chairmanship of Federal Minister/ Chairman, Privatization Mohammed Mian Soomro.
The meeting was attended by State Minister Power, Shehzad Qasim, Special advisor to PM on Petroleum Nadeem Baber, Secretary Privatization, Secretary Power Division, MD PPIB, JS Finance, senior officials from NEPRA and Privatization.
The agenda of this crucial meeting was to interact with potential power sector investors and address their queries regarding future debt financing, timeline extension, and sectoral issues. The financial advisors and potential investors joined the meeting online.
The privatization of NPPMCL had attracted unprecedented interest and 12 out of total 23 parties were prequalified for bidding, which was previously scheduled to take place in mid-April this year, but due to pandemic and international travel advisory restrictions the timeline was modified accordingly.
The high profile local and int’l potential investors include Qatar Investment Authority, EDRA, GPSC, Jera and KAPCO, Atlas Power, Asma Capital, Nebras Power among others shown interest in the said transaction.
Federal Minister Mohammedmian Soomro said that that the privatisation of NPPMCL would not be affected by any perceived sectoral issues emanating from recent developments. Mr. Nadeem Baber and Mr. Shehzad Qasim explained future government policies and power sector reforms.
The issues which were discussed related to IPP, tariff matters, reduction of circular debts, improved power efficiency, reduction in power cost, raising financing and its cost and ongoing energy plan. Federal Minister said that without addressing the concerns of investors we could not retain investors’ interest and appetite. In the meeting the investment opportunities were highlighted.
Federal Minister assured the investors that their remaining concerns would be addressed in an amicable manner and asked the concerned transaction officials and financial advisors to interact with line ministries/ Divisions for early provision of relevant information and solution to the potential buyers.
The team of investors appreciated the Ministry of Privatization for all out assistance and also requested for the extension in timeline as the site visit could not be undertaken due to Covid and travel restrictions.
Mohammed Mian Soormro thanked profusely to the Cabinet members, Secretaries and all participants.
Press Release
