Kot Addu Power Company Limited (KAPCO) has secured shareholder approval to sell its Gas Turbines GT-3 and GT-4, along with associated components, to Rizwan Steel (Private) Limited for Rs800 million, marking a significant step in the company’s asset reallocation strategy.
The transaction was disclosed in a filing to the Pakistan Stock Exchange (PSX) on Wednesday, where the company confirmed that shareholder consent has been granted for the disposal.
“The consent of shareholders of Kot Addu Power Company Limited be and is hereby accorded to the disposal of plant and machinery of the company comprising Lot-1 (Gas Turbines (GT-3 and GT-4)) along with associated parts and components to Rizwan Steel (Private) Limited at a price of Rs800 million,” read the official notice.
Authorized Signatories for the Transaction
KAPCO stated that Shahab Qader Khan (CEO) and Adolf Anthony Rath (Company Secretary) are authorized to execute the transaction and all related processes on behalf of the company.
This move comes as the power producer continues its efforts to optimize its operations in line with evolving market dynamics and regulatory shifts.
Strategic Alignment with TPPA
Just last month, KAPCO signed a Tri-Partite Power Purchase Agreement (TPPA) with:
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Central Power Purchasing Agency (Guarantee) Limited (CPPA-G)
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National Grid Company of Pakistan Limited
This agreement outlines terms for the continued sale of electricity generated from KAPCO’s power station in Kot Addu, Punjab.
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About KAPCO
Established on April 25, 1996, KAPCO is a publicly listed entity that owns and operates a multi-fuel power station with a nameplate capacity of 1,600 MW, consisting of 15 generating units.
The electricity generated is sold exclusively to Water and Power Development Authority (WAPDA) under a long-term Power Purchase Agreement (PPA).
The decision to sell selected turbines could indicate a shift toward operational efficiency and modernizing the generation mix to align with Pakistan’s changing power demands.
