ISLAMABAD – The federal government’s second phase of auctioning of three state-owned thermal generation plants (Gencos) with a cumulative capacity of 2362 megawatts has received an apathetic response from investors as no bids were received for two plants, however only one bidder participated for one Genco.
The bidding process of three outdated/non-operational Gencos, including 1350MW Muzaffargarh Thermal Power Station (GENCO-III), 880MW Jamshoro Thermal Power Station (GENCO-I) and 132MW Faisalabad Steam Power Station, was held here Monday. In the second phase of auctioning of three outdated/non-operational Gencos, only one technical bid was received for the 880-megawatt Jamshoro Thermal Power Station (GENCO-I).
The technical bid was submitted by Siddeeq & Sons. The government had set a reserve price of Rs9.97 billion for the 880-megawatt Jamshoro Thermal Power Station (GENCO-I). In contrast, no bids were received for two major facilities under Muzaffargarh Thermal Power Station having a capacity of 1,350MW and 132MW Faisalabad Steam Power Station. Together, these three plants had a reserve price of Rs26.62 billion, with generation capacity of 2,362MW. Despite marketing efforts and expectations of broader participation, there was apathetic response from investors.
Meanwhile, the bidding process for other plants under GENCO-II, including Guddu Thermal Power Plant and TPS Quetta, has been postponed. These Gencos will now be offered on May 30 in a separate round of bidding. The delay comes amid a need for more investor outreach and clarity on the terms of sale. Notably, in the first phase of the auction held earlier, the government successfully sold seven thermal plants for Rs9.05 billion, exceeding the reserve price of Rs8.07 billion. These included units in Kotri, Larkra, Sukkur, and four in Multan and Faisalabad. NESPAK, a state-owned engineering consultancy firm, is assisting in the technical evaluation and bidding process.
Chief Executive Officer GENCO, Sabih Uz Zaman Farooqi acknowledged the limited outcome and said that the auctioning of outdated power assets was always expected to proceed in phases due to the age and condition of the plants. The process is technically complex, and investor appetite varies depending on plant location, efficiency, and future viability, the CEO remarked.
