Latest news with #GENCOs
Business Recorder
28-06-2025
- Business
- Business Recorder
Amaan Piracha for privatization of loss-making GENCOs
KARACHI: Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Amaan Piracha has emphasized the urgent need to accelerate the privatization process of electricity distribution companies. He said, loss-making power generation companies (GENCOs), are burden on the national economy and must be auctioned off immediately. The first phase of the privatization of outdated and loss-incurring GENCOs has already generated Rs9.5 billion in revenue for the national treasury. Amaan Piracha stated that to boost industrial production, exports, and foreign exchange earnings, uninterrupted power supply should be ensured to industries by connecting them directly to the transmission lines. He further urged the government to consult the FPCCI leadership for the countrywide development of electric vehicles. He added that the installation of smart meters should be completed as soon as possible, and the establishment of EV charging stations across the country should be accelerated. Companies—both local and foreign—that invest in this sector should be given full facilities and incentives. Highlighting the importance of energy efficiency, he said that commitments made by banks to provide easy loans for the promotion of energy-efficient fans must be fulfilled promptly. This would enable middle-class consumers to save electricity and benefit from reduced electricity bills. He welcomed Prime Minister Shehbaz Sharif's directive to expedite the establishment of electric vehicle (EV) charging stations, calling it a positive and much-needed move. Copyright Business Recorder, 2025
Business Recorder
26-06-2025
- Business
- Business Recorder
PM orders swift sale of loss-making GENCOs
ISLAMABAD: Prime Minister Shehbaz Sharif on Wednesday called for the expedited establishment of electric vehicle (EV) charging stations and the swift privatisation of loss-making power generation companies (GENCOs). During a high-level meeting chaired by Prime Minister Shehbaz Sharif, officials from the Ministry of Energy's Power Division briefed him on the progress of ongoing power sector reforms. The Prime Minister also directed that the auction process of loss-making power generation companies (GENCOs) be broadcast live on media. The Power Ministry officials informed the prime minister that the government managed to raise Rs9.05 billion in revenue from the first phase of auctioning outdated and loss-making GENCOs. 2nd phase of auction for 3 defunct power plants: A muted response The officials said the second and third phases of the GENCOs auction are advancing rapidly, with the auction proceedings being broadcast live to ensure transparency. The prime minister was also told that negotiations with 36 Independent Power Producers (IPPs) on electricity tariffs are expected to yield savings of Rs3.69 trillion for the national exchequer. The officials informed that measures to integrate industries directly into the national transmission grid have begun to provide uninterrupted electricity to industrial consumers. The move is expected to boost production, exports, and foreign exchange earnings. As part of structural reforms, the National Transmission and Dispatch Company (NTDCL) has been restructured into two entities – the Energy Infrastructure Development Company and the National Grid Company – with specific roles assigned to each. Briefings also covered initiatives to promote electric mobility. An online portal for electric vehicle (EV) charging station applications is now active, with 120 applications received and 48 stations provisionally registered. Existing EV charging stations have also been regularised, the PM was told. A Power Planning and Monitoring Company (PPMC) has been established to enhance oversight and planning capabilities within the sector, the officials, adding that administrative boards of most electricity distribution companies have been restructured and are now fully operational. The meeting was also updated on major transmission line projects, including the Matiari-Moro-Rahim Yar Khan and Ghazi Brotha-Faisalabad lines. Local and international institutions have expressed interest in financing these projects. A roadmap has been developed to eliminate Rs2.4 trillion in circular debt over the next six years. To encourage energy conservation, a scheme is being developed to offer easy bank loans for the purchase of energy-saving fans. A roadmap for constructing energy-efficient buildings has also been finalised in consultation with provincial governments. The Prime Minister also ordered rapid installation of smart meters and sought a report in this regard. He said the federal government has completed the solarisation of tube-wells in Balochistan, which he said would enhance agricultural productivity in the province. 'The provision of public relief and uninterrupted electricity supply to industries are among our top priorities. Work on renewable energy and low-cost, environment-friendly projects must begin without delay.' The prime minister noted that electricity tariff relief was provided to consumers during the recent winter season. The meeting was attended by federal ministers, Awais Leghari, Ahsan Iqbal, Ali Pervaiz Malik, National Coordinator of the Power Task Force Lt Gen Zafar Iqbal, Prime Minister's Coordinator Musharraf Zaidi and other senior officials. Copyright Business Recorder, 2025
Express Tribune
26-06-2025
- Business
- Express Tribune
PM Shehbaz seeks report on smart meters installation
Prime Minister Shehbaz Sharif on Wednesday said that provision of relief to the public and uninterrupted power supply to industries, through reforms in the power sector, were among the top priorities. The prime minister chaired a review meeting on the ongoing power sector reforms. The prime minister directed swift completion of the second and third phases of privatization of loss-making GENCOs and further instructed that the GENCOs' auction process should be broadcast live on the media, just like other privatization programmes, the PM Office Media Wing said in a press release. The prime minister emphasised expediting the privatization of power distribution companies. During the meeting the prime minister called for an early report after the installation of smart meters was completed. He said that the federal government had completed the solarization of tube wells in Balochistan, which would enhance the province's agricultural productivity. The meeting received a detailed briefing on ongoing reforms and projects related to electricity generation, transmission and distribution. It was informed that the first phase of the privatization of outdated and loss-incurring GENCOs was completed, generating revenue of Rs9.05 billion for the national exchequer. The second and third phases were underway at a fast pace. To ensure transparency, the auction proceedings were being broadcast live. The meeting was further informed that successful negotiations were held with 36 Independent Power Producers (IPPs) regarding electricity tariffs, resulting in projected savings of Rs. 3.69 trillion for the national treasury. The prime minister also instructed that the establishment of electric vehicle (EV) charging stations across the country be accelerated and directed that proposed projects to improve the power transmission and distribution system be initiated promptly. NTDCL, the national transmission company, had been dissolved and replaced with the Energy Infrastructure Development Company and the National Grid Company, which were now being assigned their respective responsibilities, it was added. The meeting was also briefed that the process of setting up EV charging stations nationwide is progressing rapidly. An online portal was activated to receive applications for establishing charging stations, through which 120 applications were received. Of these, 48 have been issued interim registration documents. The regularization process of existing charging stations has also been completed. It was informed that the Power Planning and Monitoring Company (PPMC) had been established to improve the power sector. The boards of several power distribution companies were restructured and now fully functional. The prime minister was briefed on the Matiari-Moro-Rahim Yar Khan and Ghazi Barotha-Faisalabad transmission lines which had also attracted interest from the local and international financing institutions. The meeting was also briefed on a roadmap for the complete elimination of Rs. 2.4 trillion circular debt over the next six years. Moreover, the plans were being prepared to provide soft bank loans for energy-efficient fans to promote electricity savings, allowing middle-class consumers to reduce their bills. A roadmap for the construction of energy-efficient buildings had also been finalized and consultation with provincial governments on its implementation was completed, the meeting was further apprised. Agriculture sector Prime Minister Shehbaz Sharif on reaffirmed the government's commitment to revitalizing the agriculture sector by introducing sustainable reforms in the sector.
Business Recorder
20-05-2025
- Business
- Business Recorder
2nd phase of auction for 3 defunct power plants: A muted response
ISLAMABAD: The government's second-phase auction for three dysfunctional or closed thermal power plants received a lukewarm response, with only one party submitting a bid — for the Jamshoro Thermal Power Plant (JTPP). No bids were received for the Muzaffargarh and Faisalabad power plants. The Genco Holding Power Company Limited (GHCL) on Monday conducted open bidding for the disposal of three redundant, old, and defunct power plants, offered on an 'as-is, where-is' basis. These plants have a combined generation capacity of 2,362 MW and a reserve price of Rs 26.625 billion. The auction included the 880 MW Jamshoro Thermal Power Station, the 1,350 MW Muzaffargarh Thermal Power Station, and the 132 MW Steam Power Station in Faisalabad. Second phase of auction for defunct power plants today Prospective bidders had raised concerns regarding the applicability of income and sales taxes, as well as the exemption of sales tax on metal scrap under prevailing tax laws. In the first phase of the disposal process, the following GENCO-operated power plants were offered through International Competitive Bidding (ICB). The process concluded successfully, with all winning bids exceeding the respective reserve prices: (i) NGPS(D) Multan (260 MW); (ii) TPS Multan Cant (20 MW); (iii) Gas Thermal Power Station Faisalabad (247 MW); (iv) GTPS Shahdara(85 MW); (v) TPS Sukkur (50 MW); (vi) GTPS Kotri(174 MW); and (vii) TPS Lakhra (150 MW) with a total reserve price of Rs 8,075,599,745 but the highest quoted price was Rs 9,053,933, 333. The second phase involves the disposal of power plants with a cumulative installed capacity of 2,362 MW, located at the following sites: (i) TPS Jamshoro -880 MW with a reserve price of Rs 9.974 billion; and (ii) TPS Muzaffargarh 1350 MW with reserve price of Rs 15.050 billion and Steal Power Station (SPT), Faisalabad 132 MW with a total reserve price of Rs 1.601 billion. In line with the Government of Pakistan's reform agenda and pursuant to the decisions of the Economic Coordination Committee (ECC) of the Cabinet, along with subsequent directives of the Prime Minister and the Ministry of Energy (Power Division), the process for the closure and disposal of obsolete, defunct, and redundant thermal power plants operated by public sector power generation companies (GENCOs) has been formally initiated. The GENCOs, functioning under the administrative control of the Power Division, are responsible for managing these thermal power assets located across Punjab, Sindh, and Balochistan. Many of these power plants were installed in the 1970s, 1980s, and 1990s, and have since exceeded their operational lifespan. The four GENCOs involved are: (i) Jamshoro Power Generation Company Ltd. (GENCO-I) – Jamshoro; (ii) Central Power Generation Company Ltd. (GENCO-II) – Guddu;(iii) Northern Power Generation Company Ltd. (GENCO-III) – Muzaffargarh; and (iv) Lakhra Power Generation Company Ltd. (GENCO-IV) – Lakhra. NPGCL clarified that the assets being sold are redundant and defunct plants offered on an 'as-is, where-is' basis and do not fall under the category of scrap. Therefore, sales tax is to be applied at the standard rate of 18% for registered firms, with an additional 4% for unregistered firms. Furthermore, under current tax laws, a 10% advance income tax will be collected from bidders with active taxpayer status, while non-active taxpayers will be charged double. These tax rates are subject to future revisions as per amendments to the tax laws. Bidders also requested a reduction in the performance security requirement from 10% to 5% of the total contract price. However, NPGCL management insisted that bidders must adhere to the provisions outlined in the issued bidding documents. Some participants felt that the reserve prices were too high and asked for details regarding how the prices were determined, including quantities and rates of valuable metals such as copper, aluminum, and carbon steel. The NPGCL responded that the reserve prices had been determined by an independent valuator approved by the State Bank of Pakistan. However, valuation details could not be disclosed, as the disposal is being conducted on an 'as-is, where-is' basis. Bidders were encouraged to carry out their own assessments before submitting bids. Further, bidders proposed that dismantling should be allowed upon payment of the first 30% installment, but removal of materials from the site should be restricted. They also suggested that due to the large sums involved, staggered payments should be facilitated. Specifically, they requested that the reserve prices of key equipment—such as turbines, generators, transformers, motors, and cables—be itemized in the price schedule. The remaining material could be categorized as scrap, with a per-kilogram reserve price listed. This would allow bidders to make advance payments for specific equipment and release materials accordingly, enabling phased payments and material removal, while ensuring full payment is secured in a timely manner. 'We will assess why no bids were submitted for Muzaffargarh and Faisalabad,' said the CEO of NPGCL. Copyright Business Recorder, 2025
Express Tribune
13-02-2025
- Business
- Express Tribune
Guddu, Nandipur to be privatised
ISLAMABAD: Minister for Power Sardar Awais Ahmad Khan Leghari on Wednesday informed the National Assembly that employees of Power Generation Companies (GENCOs) will either be absorbed into distribution companies (DISCOs) or laid off with full compensation, ensuring their rights are not compromised. Responding to a calling attention notice regarding the recent decision not to absorb GENCOs employees into DISCOs and other organisations under the Power Division, he clarified that DISCOs are currently facing a staff shortage. Therefore, instead of hiring new workers, GENCOs employees will be accommodated. He revealed that details of 1,335 employees, primarily non-engineering support staff, have already been shared with various DISCOs. He assured that those retiring would receive fair compensation. He said that GENCOs employees, cost the government Rs7 billion annually in salaries, neither belong to the engineering sector nor contribute significantly to the economy.
