ISLAMABAD: The National Power Parks Management Company Limited (NPPMCL) is facing growing uncertainty regarding the future of the 450 MW Rousch Power Plant, following its transfer to the government under the Negotiated Settlement Agreement (NSA), sources told Business Recorder.
Under the NSA with M/s Rousch Power, the plant—previously owned by former Commerce Minister Abdul Razak Dawood—was handed over to the Government of Pakistan under BOOT terms. Key commitments included:
- Transfer of the entire complex to the government or a designated entity for USD 1 (payable in PKR at the prevailing exchange rate);
- Payment of Rs 5.5 billion to the company for the OFME period due to early termination;
- Payment of Rs 2.8 billion for preservation of the complex until its official transfer.
During its 103rd Board meeting on October 17, 2025, NPPMCL reviewed the plant’s status and raised several concerns. The Board noted:
- Rs 563.88 million spent to maintain preservation mode between January 1 and June 30, 2025;
- A further budget of Rs 368.83 million allocated for standstill mode from July to December 2025;
- No reimbursement of costs incurred on government directives, despite prior assurances;
- Completion of the plant’s valuation study by a consultant;
- Ongoing transfer of land and machinery titles, expected to conclude by November 2025.
Given these challenges, the Board concluded that extending expenditure beyond December 31, 2025 would not be financially prudent. It directed management to obtain clear instructions from the Power Division regarding the disposal pathway—either through the Privatisation Commission or by NPPMCL itself.
Legal advice obtained by the company affirms that the sale of the Rousch Power Plant must be conducted through the Privatisation Commission under Section 2(i) of the Privatisation Ordinance, 2000, unless a formal waiver is granted. The provision categorizes the transfer of any federally owned asset as privatisation unless exempted or below a prescribed threshold.
The company further warned that if disposal is delayed, continued O&M arrangements and additional expenditure will become unavoidable.
Meanwhile, the Federal Government has been informed of NTDC/NGC’s interest in repurposing the plant’s generators as synchronous condensers to support grid stability. NPPMCL has sought confirmation from NGC’s Chairman on this proposal.
In light of these developments, NPPMCL has formally requested the Government to issue clear directions on the mode and timeline for disposing of the Rousch Power Plant.
Story by Mushtaq Ghumman
