The federal government is set to approve the takeover of the 450-megawatt Rousch Pakistan Power Limited (RPPL) by the National Power Parks Management Company Limited (NPPMCL) as part of structural reforms aimed at reducing capacity payments and lowering consumer electricity tariffs.
According to sources, the Power Division has prepared a summary titled Taking Over of Rousch Power Plant by NPPMCL, which will be presented to the federal cabinet for approval. The prime minister and the energy minister have granted permission to submit the summary for cabinet consideration.
The move follows recommendations from a task force formed by the prime minister on August 4, 2024, to restructure the power sector. The task force proposed terminating Power Purchase Agreements (PPAs) and Implementation Agreements (IAs) with five Independent Power Producers (IPPs), including RPPL, in a presentation to the prime minister on September 2 and a subsequent briefing to the cabinet on September 4.
Following negotiations, a settlement was reached with these IPPs to terminate contracts upon payment of a mutually agreed amount. Since RPPL was established under the Build-Operate-Own-Transfer (BOOT) model, it was decided that the power complex and site would be transferred to the federal government or its designated entity for a nominal price of one US dollar. On October 10, 2024, the cabinet approved NPPMCL as the designated entity to take over RPPL.
In response, NPPMCL presented a detailed takeover plan to the task force on November 19, 2024, outlining the required costs, actions, and government facilitation needed to meet the cabinet’s directive by December 31, 2024.Â
During a subsequent meeting on December 6, 2024, NPPMCL estimated the costs for acquiring the complex, transferring the land, and maintaining the plant in dry-preservation mode for six months. The task force directed that the plant remain non-operational for the time being. NPPMCL then revised the maintenance costs and submitted a final plan to the Power Division on December 9, 2024.
To formalize the process, an agreement between NPPMCL and the federal government has been drafted, as required under the State-Owned Enterprises (Governance and Operations) Act, 2023. The prime minister has approved submitting the summary to the federal cabinet for final approval.
The cabinet’s decision will determine the next steps in integrating RPPL into the public sector, aligning with the government’s broader power sector reforms.
