ISLAMABAD: The government’s plan to auction obsolete public-sector power plants under Genco Holding Company Limited (GHCL) has hit major roadblocks, prompting a possible shift in strategy to hand over the plants to Wah Industries — an arm of the Ministry of Defence — through a government-to-government (G2G) arrangement.
Sources revealed that while the first phase of auctions in March 2025 fetched bids worth Rs9.05 billion against a reserve price of Rs8.07 billion for seven plants, no proceeds have materialized in four months due to failure in securing binding contracts. The second auction round didn’t commence as scheduled due to lack of credible interest.
Frustrated by repeated setbacks, the Energy Task Force — led by Lt Gen Zafar Iqbal — has decided to transfer all remaining power plants to Wah Industries by the end of July.
Despite winning six contracts, M/S Daraza Builders has made no further payments beyond initial performance guarantees. Genco-I, which signed a Rs1.88bn deal for the 147MW Kotri plant, neither issued delay notices nor enforced penalties. Genco-II returned a bid security of over Rs96 million without finalizing the Sukkur Plant contract.
Delays plague Genco-III as well, where TPS Multan’s contract was signed three months late. Other contracts for NGPS Multan (260MW), GTPS Shahdara (85MW), and GTPS Faisalabad (247MW) remain unsigned or delayed, raising concerns of internal inefficiencies and speculative behavior.
Even where some payments have started — such as the Rs2.13bn deal for Lakhra Power Plant under Genco-IV — installment delays are being reported.
The cumulative procedural lapses, weak enforcement, and failure to secure international bidders reflect deep structural issues, casting doubt on GHCL’s ability to execute critical reform mandates.
Story by Khaleeq Kiani
