By SKM
January 31, 2025
ISLAMABAD: The federal government has acquired 450 MW gas-fired Rousch Pakistan Power Limited (RPPL) owned by eminent businessman Mr Razzak Dawood, former commerce minister at the cost of US$1 which 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 power.
As RPPL was built under 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 1 US Dollar.
As per the power division’s summary available with Exclusivewaves.com.pk, the federal cabinet has been requested to approve an amount of Rs1.096 billion (exclusive of taxes) to meet the accrued and future expected expenses to be incurred by the NPPMCL for the transfer of Site and keeping the Complex of RPPL in dry-preservation mode for the period of six (06) months from January 01, 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 on power in order to reduce capacity payments and consumers tariff, discloses the summary of power division submitted to the federal cabinet.
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 a period of 6 months only, which was to be scrutinized/examined by the Power Division. NPPMCL presented rationalized costs to the Power Division as per letter dated December 09, 2024.
Power Division also sought the exemption from application of PPRA Rules, 2004 for procurement of various services required by the NPPMCL for taking-over of RPPL Complex and Site on or before December 31, 2024.
In the summary, Power Division also sought the exemption under section 166(4) (5) of the Insurance Ordinance, 2000, allowing NPPMCL to obtain necessary insurance of the plant equipment without recourse to NICL.
It also sought the approval of the mechanism for payment to SNGPL of the fuel (RLNG) required for performance benchmark test and of the electrical output generated during such test.
Information about the entity in whose name the title of Site land is to be transferred in the Land Revenue record through execution of appropriate instrument.
Federal cabinet has also been asked to ensure mandating the entity for sale of Complex and Site of RPPL within six (06) months from taking over the same by NPPMCL but in any case, not later than June 30, 2025. Ends
