Pakistan’s second thermal power plant auction fails to attract bidders

Pakistan’s second phase of auctioning outdated state-owned thermal power plants concluded with a disappointing outcome on Monday, as only one bidder participated for a single plant, while others failed to attract any interest.

The 880-megawatt Jamshoro Thermal Power Station (GENCO-I) was the only facility to receive a technical bid, submitted by Siddeeq & Sons. The government had set a reserve price of PKR 9.97 billion for this asset.

In contrast, no bids were submitted for two major facilities under GENCO-III—the 1,350 MW Muzaffargarh Thermal Power Station and the 132 MW Faisalabad Steam Power Station. Collectively, these three plants had a reserve price of PKR 26.62 billion and a generation capacity of 2,362 MW.

Officials confirmed the lack of investor interest despite extensive marketing efforts and initial expectations of broader participation.

Meanwhile, the bidding process for other plants under GENCO-II, including the Guddu Thermal Power Plant and TPS Quetta, has been postponed.

These assets will now be offered on May 30 in a separate auction round. The delay follows concerns over insufficient investor outreach and the need for greater clarity on sale terms.

GENCO CEO Sabiha Uz Zaman Farooqi acknowledged the limited response, stating that the auction of outdated power assets was always expected to proceed in phases due to the plants’ age and condition. She added that the process is technically complex, with investor interest varying based on factors such as location, efficiency, and long-term viability.

In the first phase of the auction held earlier, the government successfully sold seven thermal plants for PKR 9.05 billion, surpassing the reserve price of PKR 8.07 billion.

These included units in Kotri, Larkana, Sukkur, and four in Multan and Faisalabad. NESPAK, a state-owned engineering consultancy firm, is assisting in the technical evaluation and bidding process.