Pakistan's second phase of auctioning the outdated state-owned thermal power plants produced a disappointing outcome on Monday as only one bidder came forward by making an offer for a single plant while others did not show any interest.
The 880-megawatt Jamshoro Thermal Power Station (Genco-I) was the only plant that received a technical bid, which was submitted by Siddiqsons. The government had set a reserve sale price of Rs9.97 billion for the power plant.
On the contrary, no bids were received for two major projects running under Genco-III – the Muzaffargarh Thermal Power Station (1,350 MW) and the Faisalabad Steam Power Station (132 MW). Together, the three plants had a reserve sale price of Rs26.62 billion with electricity generation capacity of 2,362 MW.
Officials confirmed the lack of interest on the part of investors despite marketing efforts and expectations of broader participation.
Meanwhile, the bidding process for other plants functioning under Genco-II, including the Guddu Thermal Power Plant and the Thermal Power Station Quetta, has been postponed. These assets will now be offered for auction on May 30 in a separate round.
The delay comes in the wake of need for more investor outreach and clarity in terms of sale.
Genco Chief Executive Officer Sabeehuz Zaman Faruqui acknowledged the limited outcome and said that the auction of outdated power assets was always expected to be held in phases due to the age and condition of those plants. The process is technically complex while investor appetite varies depending on a plant's location, efficiency and future viability, he said.
In the first phase of auction held earlier, the government successfully sold seven thermal plants for Rs9.05 billion, which surpassed the reserve price of Rs8.07 billion. These included the power units situated in Kotri, Lakhra and Sukkur, and four units in Multan and Faisalabad.
National Engineering Services Pakistan (Nespak), a state-owned engineering consultancy firm, is assisting in the technical evaluation and bidding process.
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