ISLAMABAD – At a time when the government is moving against aged and expensive independent power producers (IPPs), Kot Addu Power Company Limited (KAPCO) has sought renewal of generation licence for its three decades old power plants.
Kot Addu Power Company Limited has submitted petition with NEPRA seeking renewal of generation licence for its 550MW power plants, out of the total 1600MW capacity, for seven years. According to NEPRA, Kot Addu Power Company Limited has submitted a request for extension in the term of its Generation Licence as stipulated in Regulation 13 of NEPRA Licensing (Application, Modification, Extension and Cancellation) Procedure Regulations, 2021.
KAPCO has sought generation licence for its generation facility of 1600MW (gross) located at Kot Addu, District Muzaffargarh, in the province of Punjab. However, KAPCO has proposed to extend the term of licence to the extent of 550MW (net 500MW) out of whole complex of 1600MW.
KAPCO has informed that its existing generation licence had a term of 17 years which had expired on September 21, 2024. The Authority extended the term of said licence for a period of three (03) years and the same has also expired on September 21, 2024. Now, KAPCO has requested to extend the term of the generation licence for another period of seven years.
KAPCO has submitted that proposed extension of 550MW (net 500MW) out of 1600MW in the generation licence will ensure retaining of units as per the draft IGCEP 202434; conformity with the remaining useful life of the generation facility; and reliability and stability of the system. NEPRA has invited comments from all stakeholders, interested/affected persons and the general public in favor or against the proposal of KAPCO for extension of its Term of Generation Licence within 14 days.
According the company’s profile, work on Kot Addu Power Plant was started, by Water and Power Development Authority (WAPDA), four decades ago in 1985 and the project was completed in five phases in 11 years in 1996. Kot Addu Power Company Limited was incorporated as a public limited company under the Companies Ordinance, 1984, with the objective of acquiring the Power Plant from WAPDA, in April 1996,.
In June 1996, through an international competitive bidding by the Privatization Commission, government of Pakistan, the company was privatised. At the time of privatisation and following privatisation, WAPDA divested 36% of its shareholding in the company to the strategic investor. In August 2013, the strategic investor sold its entire shareholding in the company to local corporate entities and individuals. The Privatisation Commission (on behalf of WAPDA) sold another 18% of WAPDA shareholding in the company to the general public and the company became listed in February 2005.
