KAPCO to Sell Gas Turbines to Rizwan Steel for Rs800 Million

Kot Addu Power Company Limited (KAPCO) has secured the approval of its shareholders to proceed with the sale of its Gas Turbines GT-3 and GT-4, along with their related components, to Rizwan Steel (Private) Limited for a total sum of Rs800 million.

The power generation firm communicated this development in an official notification to the Pakistan Stock Exchange (PSX) on Wednesday.

The notification stated, “The shareholders of Kot Addu Power Company Limited have officially granted their consent to the disposal of the company’s plant and machinery, specifically Lot-1, which includes Gas Turbines (GT-3 and GT-4) and associated parts, to Rizwan Steel (Private) Limited for a price of Rs800 million, contingent upon obtaining the necessary approvals as detailed in the statement of material facts.”

KAPCO has indicated that Shahab Qader Khan, the Chief Executive, and/or Adolf Anthony Rath, the company secretary, are authorized to handle the disposal of the plant and machinery. They are also empowered to represent the company in all actions and tasks required to implement the disposal and the associated transaction.

In the previous month, KAPCO formalized a Tri-Partite Power Purchase Agreement (TPPA), including all schedules, with the Central Power Purchasing Agency (Guarantee) Limited (CPPA-G) and the National Grid Company of Pakistan Limited. This agreement governs the terms of electricity sales originating from KAPCO’s power plant.

KAPCO, incorporated in Pakistan on April 25, 1996, as a public limited company, primarily focuses on owning, operating, and maintaining a multi-fuel power station. This station is equipped with fifteen generating units, possessing a total nameplate capacity of 1,600 MW and is situated in Kot Addu, Punjab.

The power company’s primary business involves selling the produced electricity to a single client, the Water and Power Development Authority (WAPDA), under the stipulations of a Power Purchase Agreement (PPA).