Rousch warns NPPMCL of zero responsibility post-Dec 31 for power complex

The caution comes amid delays in completing the formal handover of the 450MW gas-fired combined-cycle plant

ISLAMABAD: Rousch (Pakistan) Power Limited (RPPL) has formally notified the National Power Parks Management Company Limited (NPPMCL) that it will not assume responsibility for any liabilities, losses, or risks associated with the Rousch Power Complex after December 31, 2024.

The caution comes amid delays in completing the formal handover of the 450MW gas-fired combined-cycle plant.

RPPL highlighted pending obligations at NPPMCL’s end, including the legal transfer of land and completion of documentation for office and colony assets, Business Recorder reported citing sources. The company emphasized that timely resolution of these matters is in the mutual interest of both parties.

In a parallel development, the Public Procurement Regulatory Authority (PPRA) Board has recommended that the federal government grant a one-time exemption to NPPMCL from specific provisions of the Public Procurement Rules, 2004. The exemption, requested by the Power Division, would allow NPPMCL to swiftly procure essential services needed to maintain the Rousch Power Plant following its transfer.

According to official documents, the exemption request was driven by the Prime Minister’s task force recommendations, which called for the termination of five Independent Power Producers (IPPs), including RPPL, to reduce capacity payments and consumer tariffs. As the Rousch facility was established under a Build-Own-Operate-Transfer (BOOT) model, it is being transferred to the federal government for a symbolic consideration of one U.S. dollar.

The Power Division argued that NPPMCL, designated by the Cabinet as the receiving entity, lacks the operational capability to maintain the plant and therefore must urgently hire third-party contractors. These services include plant operation and maintenance (O&M), long-term maintenance for turbines, security, legal and audit support, horticulture, HR provisioning, and insurance.

The estimated fair market value of the Rousch Power Complex is Rs35.6 billion, making it a key national asset. Given the urgency to preserve the facility and prevent deterioration, the Power Division emphasized that the normal four-month procurement timeline under existing rules would delay critical operations.

The PPRA Board, chaired by Finance Secretary Imdad Ullah Bosal, deliberated on the proposal during its April 11 meeting. The board ultimately endorsed exemptions under Rule 12 and Rule 20 of the procurement rules for two core services: O&M operations and third-party HR staffing.

The recommendation will now be placed before the Federal Cabinet for final approval.

As the transfer deadline nears, RPPL’s stance underscores the pressing need for administrative clarity and swift action by NPPMCL to avoid operational disruptions and safeguard a high-value infrastructure asset.

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