Lapses, delays hamper auctions of power plants

The government’s ambitious plan to auction old and defunct public sector generation plants under Genco Holding Company Limited (GHCL) — aimed at curtailing operation and maintenance (O&M) expenditure — is in serious trouble, compelling authorities to consider handing over the scrap to Wah Industries of the Ministry of Defence. Sources said the first round of auction, which appeared to be a success on the sale counter, could not generate any proceeds so far in almost four months amid management’s inability to secure binding contracts while the second round failed to take off even on the scheduled bidding date. “Frustrated by repeated failures and lack of credible bids in subsequent auctions, the Energy Task Force led by Lt Gen Zafar Iqbal decided earlier this month to make a major policy shift and hand over all remaining power plants to Wah Industries through a government-to-government (G2G) arrangement by the end of the current month”, said the sources.