KARACHI: Pakistan is considering the United Arab Emirates’ (UAE) expression of interest in acquiring the Guddu Thermal Power Station (GTPS), a combined cycle 747 megawatt (MW) power plant located in Kashmore district of the southern Sindh province, a senior privatization official said this week.
Owned and operated by the Central Power Generation Company Limited (CPGCL), Guddu is a steam turbine power plant that runs primarily on natural gas but has the capacity to switch over to furnace oil in case of shortages of gas fuel.
The federal cabinet last month approved the financial evaluation of Guddu for the plant's eventual privatization.
Hamad Bin Khalifa Department of Projects (HBK DOP), founded by Sheikh Hamad Bin Khalifa Bin Mohammed Al Nahyan to support and advance the development of social progress, environmental balance and economic growth around the world, has written a ‘letter of intent’ to Pakistan, expressing interest in buying the power plant.
“They (UAE) have expressed their interest in the Guddu Power plant,” Muhammad Jamil, a director general at the Privatization Commission (PC), told Arab News on Thursday. “The expression of interest is under the consideration of the government of Pakistan and the final decision would be taken by the Cabinet Committee on Energy, which is the relevant authority.”
HBK DOP has expressed its desire to work on the privatization of the power plant with the government of Pakistan and an appointed financial advisor.
“We understand that the Government of Pakistan is in the process of privatization of Guddu Power Plant and has already advertised, commenced, and appointed Financial Advisor/consultants,” the letter, dated February 21,2022, and seen by Arab News, said.
“We hereby with the virtue of this letter express our intention in compliance of all procedural requirements to express our interest in the acquisition of Guddu Power Plant and look forward to working with the government of Pakistan with the Privatization Commission and its appointed financial advisors/consultants towards a meaningful closure.”
Analysts called the UAE interest a “good sign” for Pakistan’s power sector, saying it would contribute to the improvement of energy efficiency.
“UAE is one of the major trading partners of Pakistan,” Khurram Schehzad, CEO of Alpha Beta Core, told Arab News,” and its interest in the energy sector of Pakistan is a good sign.”
Pakistani officials said Pakistan State Oil, a Karachi-based Pakistani state-owned petroleum corporation involved in the marketing and distribution of petroleum products, has also expressed interest in acquiring Guddu.
“Privatization Commission will commence the process once the relevant authorities, the energy ministry, decide to privatize the plant,” Jamil from the Privatization Commission said.